Varun Beverages, PepsiCo's top bottler, reports soaring profits but stock drops due to higher costs.

Varun Beverages Ltd, PepsiCo's largest franchise bottler, saw a 36% jump in net profit to Rs 195.64 crore for the December 2024 quarter, with revenue rising to Rs 3,817.61 crore. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 38.7% to Rs 579.97 crore. For the full year, net profit increased 25.3% to Rs 2,634.28 crore. The company's low sugar/no sugar product mix rose to 53% of sales. Despite financial growth, the stock dropped due to higher costs and earnings missing analyst expectations. Varun Beverages is expanding in African markets like South Africa and Morocco.

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