Varun Beverages Sets QIP Plans; Share Price Drops 5.91%

On October 6, 2024, Varun Beverages Limited announced in a stock exchange filing that its Board of Directors will convene on Wednesday, October 9, 2024. The primary agenda items include raising funds through the issuance of Equity Shares via Qualified Institutions Placement (QIP) and the issuance of a notice for a postal ballot to seek shareholder approval for the same.

Following this announcement, Varun Beverages’ share price opened at ₹574.90 on October 7, 2024, a decrease from its previous close of ₹578.90. As of 12:08 PM, the share price of Varun Beverages had further declined to ₹544.70, marking a decrease of 5.91%.

Varun Beverages has demonstrated strong financial performance in the recent quarter. For Q2 CY2024, the company reported a revenue growth of 28.3% year-over-year (YoY), reaching ₹71,968.6 million compared to ₹56,114.0 million in Q2 CY2023. The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the quarter increased by 31.8%, amounting to ₹19,912.2 million, up from ₹15,110.2 million. Profit After Tax (PAT) also saw a notable rise, increasing by 25.5% to ₹12,618.3 million from ₹10,054.2 million, driven by robust volume growth and enhanced profit margins.

When reviewing the first half of 2024 compared to H1 2023, Varun Beverages reported a 21.1% YoY increase in revenue from operations, totalling ₹115,141.8 million versus ₹95,043.8 million in H1 2023. Additionally, EBITDA grew by 29.1% to ₹29,799.8 million, while PAT increased by 25.3% to ₹18,098.2 million in H1 2024 compared to ₹14,439.9 million in H1 2023.

About Varun Beverages Limited

Varun Beverages Ltd has had a longstanding partnership with PepsiCo since the 1990s, establishing itself as a significant player in the beverage industry and one of the largest PepsiCo franchisees globally. The company manufactures and distributes an extensive array of carbonated soft drinks, non-carbonated beverages, and packaged water, all marketed under trademarks owned by PepsiCo. Among the PepsiCo brands produced and sold by Varun Beverages are Pepsi, Seven-Up, Mirinda Orange, Mountain Dew, Tropicana Juices, and many others.

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