Varun Beverages Ltd Q1 FY26 Results

We delivered a resilient performance during the quarter. In-spite of unusually early onset of monsoon rains in the peak summer months in India, we could keep our realizations per case and EBITDA margins intact. Due to growth in international markets supported by strong positive currency movement in Africa territories, Company ended the quarter with a positive PAT, in-spite of 3% decline in consolidated sales volumes In International markets, Varun Beverages Morocco has commenced commercial production of PepsiCo’s snacks product ‘Cheetos’. This marks another milestone in strengthening our presence in the high-poftential snack category, complementing our beverage portfolio and diversifying our revenue streams. We continue to focus on growth opportunities in South Africa market. We have enhanced capacity by setting up a can line in Durban, one of our existing production facilities. We are awaiting approval from Competition Commission of South Africa for land parcel purchase adjoining to our production facility in Boksburg to further enhance capacity & backward integration. These are few starting steps in our series of initiatives. Strong currency and our efforts in implementing backward integration last year have resulted in enhanced profitability in all our African territories. We have further strengthened Zambia, DRC and South Africa subsidiary balance sheets and through in-process equity infusion raising our stake in Zambia from 90% to 95%. In line with our dividend policy, the Board of Directors has approved a second interim dividend of 25% of face value, i.e., Rs. 0.50 per share, resulting in a total cash outflow of approximately Rs. 1,691 million. Although unseasonal rains have impacted performance during the quarier, we have successfully navigated such challenges in the past and emerged stronger. We continue to strengthen our on-ground execution by adding more visi-coolers and ensuring wider product availability across retail fouchpoints. With robust capacities now operational, an expanding product portfolio, and a sharply focused distribution network, we are well-positioned fo capture emerging opportunities and drive sustainable, long-term value creation for all stakeholders.