The share price of this leading FMCG company mainly involved in the business of of manufacturing, distribution, and sale of carbonated soft drinks saw its shares rise by 2 percent to an intra-day high of Rs 1,646.95 after the company provided an update that the board of directors will be meeting in the future to consider a stock split.
Share price movement:
With a market capitalization of the firm standing at Rs 2,12,648.24 crores, the shares of Varun Beverages Limited surged around 2 percent at 10:30 am trading at Rs 1,635.50 apiece On Thursday’s morning session. Over the past year, the stocks of Varun Beverages Limited generated a multi-bagger return of 103 percent and a return of 30 percent over the past 6 months.
What happened:
From the latest Stock exchange filings of Varun Beverages Limited (VBL), the firm has provided an update that the board of directors will be meeting on Tuesday, July 30th, 2024 to consider a stock split.
Financials:
Reviewing the financials of VBL on a Quarter-on-quarter basis the revenues increased by 62 percent from Rs 2,668 crores in Q3FY24 to Rs 4,317 crores in Q4FY24. During the same time frame, the net profits increased from Rs 144 crores to Rs 548 crores, demonstrating a 280 percent increase.
Recent agreements and Capex plans:
Recently, Varun Beverages has signed an agreement with Pepsico in order to expand its product range and geographical reach in the countries of Zambia and Zimbabwe to set up a manufacturing capacity of 5,000 metric tonnes per annum (MTPA) with a total spend of Around Rs 60 crores. Additionally, the company has plans for a capacity expansion of Rs 4,000 million for its DRC unit.
Acquisitions:
In March 2024, Varun Beverages Limited has completed the strategic acquisition of South African beverage company Bevco Ltd for an EV valuation of Rs 1,320 crores to enhance its presence in the African market, a region that has a huge demand for soft drinks.
New subsidiary:
Additionally, Varun Beverages Limited (VBL) established a new subsidiary named VBL Mozambique, SA in Mozambique, South Africa to enhance VBL’s distribution capabilities for beverages in the region.
Shareholding Pattern:
During the period of June 2024, the firm’s shareholding pattern stood at 62.66 percent for promoters, 7.46 percent for the public, 25.32 percent for foreign institutional investors, and 4.55 percent for domestic institutional investors.
About the Company:
Incorporated in the year 1995, Varun Beverages Limited (VBL) is a leading bottler of PepsiCo products in India, With an extensive brand portfolio including Pepsi,7 Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Sting, and many more. The firm falls under the sector of FMCG.
Written By Zahal
