Varun Beverages Limited gains the attention of investors as the company shows phenomenal performance in the stock market. The company has reported the highest growth in the last quarter and is still gaining more profits.
Varun Beverages Limited (VBL) is the second biggest franchise company of Pepsico. The company is functioning globally and is currently Pepsico’s biggest partner. The company’s performance in the last quarter has left investors surprised. Despite the struggle with consumer companies Varun Beverages has raised high profits and shown significant growth. The company has shown great progress globally and also has enhanced profitable operations in India. They have served a double-digit organic across the world and have a resilient selling system.
The company has reported revenue growth of 26 percent in the last quarter and this is expected to grow further in the second quarter. The volumes are expected to grow by 85 percent year on year. The India volumes are expected to grow by 93 percent year-on-year and 46 percent globally. If the performance is recorded on topline throughout the year, their operating profits can be doubled to ₹1,143 crores.
The aggregate annual revenue growth is recorded at 18 percent while other consumer companies are battling at a 10 percent rate. They are facing demand and margin pressures leading to slowed operations and monotonous growth. VBL’s operating profit growth over three years is reported at 13 percent which is greater than the average for other companies. The average recorded for other companies is 8 percent.
Varun Beverages was founded in 1985 in India. The company manufactures packaging for beverage companies. It is the second largest partner of Pepsico outside the US for packaging. Apart from bottle packaging, the company has also partnered with Pepsico for its food packaging. In January 2022, the company tied up to manufacture packaging for Pepsico’s food initiative Puffcorns. With their strategies for branding and selling, they have proved to be a tough competition to their biggest competitor- Coca cola. Their distributions have had an impact on increasing sales and eventually helping to gain profits.
The company is currently at the top of the market and with its increased operations it is expected to rule the charts. Investors, as well as consumers, have to look out for their new initiatives and current operations as these will determine the performance of the company.
