Organic volume growth for the full year stood at 17.2 percent supported by robust performance in India (organic growth 13.1 percent) as well as international territories (organic growth 34 percent), company said.
Shares of Varun Beverages rallied more than 7 percent intraday on February 7 after strong earnings growth had been reported in 2019 and cut in Q4 loss.
The stock rallied nearly 50 percent in last one year, especially after the company also received franchise rights of the foods and snacks major PepsiCo in southern and western India in March 2019. It was quoting at Rs 826.05, up Rs 49.35, or 6.35 percent, amid high volumes on the BSE at 12:32 hours IST.
In 2019, the franchisee of PepsiCo said profit grew by 57.47 percent to Rs 472.2 crore and revenue jumped 38.64 percent to Rs 7,248.45 crore compared to previous year on the back of robust volume growth.
Total sales volumes were up 44.9 percent YoY to 49.27 crore cases during the year.
Organic volume growth for the full year stood at 17.2 percent supported by robust performance in India (organic growth 13.1 percent) as well as international territories (organic growth 34 percent), company said, adding Morocco, Zimbabwe and Sri Lanka have all grown in double digits during the year.
The full-year EBITDA increased by 43.8 percent to Rs 1,447.65 crore YoY. "Even though gross margins declined by 120 bps during 2019 due to change in product mix and higher PET prices, EBITDA margins expanded by 59 bps in 2019 to 20.3 percent on account of operating leverage in the business," Varun said.
The company reported consolidated loss of Rs 53.95 crore in October-December 2019, cutting down from loss of Rs 70.82 crore seen in same period last year. The higher other income of Rs 35.98 crore (against Rs 1.8 crore YoY) also helped company reduce losses for the quarter.
The seasonality impacted earnings performance, but the operational numbers remained strong.
"Despite Q4 being a seasonally weak quarter, the losses were notably lower in comparison to Q4 2018 on account of better business efficiencies, cost containment strategies and integration of new territories that are relatively less seasonal," Varun Beverages said in its BSE filing.
The company follows calendar year as its financial year.
Consolidated revenue during the quarter increased substantially by 54.1 percent to Rs 1,239.5 crore YoY, with total sales volumes rising 80.7 percent YoY to 8.25 crore cases in Q4.
At operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 142 percent YoY to Rs 115.7 crore and margin expanded 330bps YoY to 9.3 percent in December quarter.Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.
