Varun Beverages, one of the largest franchisees of PepsiCo globally (outside the USA), announced its June quarter results on July 29, reporting a 5% year-on-year (YoY) increase in net profit to ₹1,325 crore in Q2 CY25, compared to ₹1,261 crore in the same period last year. 

However, revenue from operations declined 2.5% YoY to ₹7,017 crore in Q2 CY25 from ₹7,196 crore in Q2 CY24. On the volume front, consolidated sales volume dropped 3% to 389.7 million cases, down from 401.6 million cases a year earlier, primarily due to unseasonal and abnormally high rainfall in India during the quarter.

In terms of geographical performance, India volumes fell 7.1%, while international volumes grew 15.1%, led by 16.1% growth in South Africa, partially offsetting the overall decline. Net realization per case at the consolidated level improved 0.5%, driven by a 6.6% improvement in international markets.

At the operating level, EBITDA rose 0.4% YoY to ₹1,998.8 crore, compared to ₹1,991.2 crore in the same quarter last year. EBITDA margins expanded by 82 basis points to 28.5%, despite an increase in fixed overheads from newly commissioned capacities at four greenfield plants in India, which are yet to yield incremental volumes.