Varun Beverages Q2 Results: Profit Edges Higher Despite Volume Decline; Announces Interim Dividend

Market Performance

Varun Beverages, one of the leading PepsiCo bottlers outside the U.S., released its Q2 CY25 financial results on July 29. The company reported mixed performance during the quarter, impacted by seasonal weather shifts in its core market.

• Sales volumes dropped 3% YoY to 389.7 million cases, from 401.6 million in Q2 CY24.
• The decline was primarily due to early monsoon rains in India, which disrupted peak summer sales.

Main News: Domestic Weakness Offsets Global Gains

While domestic volumes declined by 7.1%, the company witnessed a 15.1% surge in international volumes, helping cushion the impact.

• Notably, South Africa recorded a 16.1% growth, leading international expansion.
• Net realization per case rose 0.5% YoY, supported by 6.6% improvement in international pricing.

Despite the volume dip, cost optimization and strong global operations helped Varun Beverages maintain profitability.

Company Details: Financial Snapshot for Q2 CY25

Revenue

• Revenue from operations dropped 2.5% YoY to ₹7,017 crore
  (vs ₹7,196 crore in Q2 CY24)

EBITDA

• EBITDA grew marginally by 0.4% YoY to ₹1,998.8 crore
  (vs ₹1,991.2 crore in the previous year)

EBITDA Margins

• Margins expanded by 82 basis points to 28.5%
  despite fixed overheads from four new greenfield facilities in India

Net Profit

• Net profit rose 5% YoY to ₹1,325 crore
  (vs ₹1,261 crore in Q2 CY24)
  — aided by operational efficiencies and lower finance costs

Dividend Announcement

Varun Beverages also declared its second interim dividend for the year:

• ₹0.50 per share, representing 25% of ₹2 face value
• Total cash outflow of approximately ₹169 crore
• Record date: August 2, 2025
• Dividend payment begins from August 5, 2025

Summary of the Article

The Varun Beverages Q2 Results reflect a resilient performance amid challenging weather patterns. While Indian sales volumes fell, robust international growth and strong cost management supported margins and net profit. The company continues its strategic capacity expansion and has rewarded shareholders with a healthy dividend payout.