2:5 Stock Split, Rs 1.25/Share Dividend Recommended: Varun Beverages Shares Fall 5.52%

Large cap FMCG company Varun Beverages Ltd shares today witnessed decline of 5.52% despite reporting a jump of 25.5% in its profit after tax (PAT) to Rs 1261.83 crore for the June quarter as against Rs 1005.2 crore reported in the corresponding quarter of last year. The surge in the profit was pushed by volume growth and improved margins, according to its BSE filing. Board of Directors of Varun Beverages today recommended 2:5 stock split along with an interim dividend of Rs 1.25 per equity share. Current market price of Varun Beverages shares on BSE is Rs 1590.85 per share. The company's market capitalisation stood at Rs 2,06,742.24 crore. More details below:

Varun Beverages Approves Stock Split: According to the BSE filing of Varun Beverages dated July 30, 2024, "The Board considered and recommended sub-division/split of existing equity shares of the Company from 1 (one) equity share having face value of Rs. 5 each, fully paid-up, into such number of equity shares having face value of Rs. 2 each fully paid-up, subject to the approval of equity shareholders of the Company through postal ballot."

Varun Beverages Declares Interim Dividend: The BSE filing added, "In In line with the guidelines of Company's dividend policy, the Board of Director's have approved an interim dividend @ 25% of face value i.e. Rs. 1.25 per share. Total cash outflow would be ~Rs. 1,624.30 mn."

Varun Beverages Q2 Results: The company announced its revenue from operations soared 28.3% Year-On-Year (YoY) to Rs 7196.86 crore in Q2 as against Rs 5,611.40 crore announced in the corresponding quarter of last year. Ravi Jaipuria, Chairman, Varun Beverages Limited said, "We are pleased to report robust performance for the second quarter of CY2024, achieving a consolidated sales volume growth of 28.1%, which includes volumes from BevCo. The impressive volume growth of 22.9% in India primarily contributed to this outstanding performance, supported by our expanded capacities, enhanced distribution network, and a strong summer season. Meanwhile, our international markets remained relatively flat, moreover it was a seasonally weak quarter for African market."

According to the BSE filing, "Consolidated sales volume grew by 28.1% to 40.16 crore cases in Q2 CY2024 from 31.35 crore cases in Q2 CY2023. This includes ~28 million cases from BevCo during the quarter. India volumes grew by 22.9% while International volumes (before BevCo volumes) was almost flat primarily on account of volumes in Zimbabwe getting affected due to portfolio transition to zero sugar without affecting profits."

Varun Beverages Shares Performance & Return: The 52-week high price of Varun Beverages shares on BSE is Rs 1707.10 per share (as on 29/07/2024) and 52-week low price is Rs 796.00 per share (as on 31/07/2023), respectively. Varun Beverages shares slipped 3.74% in last 1-month, gained 25% in last 6-months, soared 95% in last 1-year, and zoomed 255% in last 2-years. In last 3-years, Varun Beverages shares climbed 517% and 1007% in last 5-years.

About: Varun Beverages Limited ("VBL" or the "Company") is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company manufactures, distributes and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo, according to its LinkedIn page.