Varun Beverages block deal: Promoters likely to sell shares worth ₹850 crore tomorrow

The promoters are likely to offer upto 5-7% discount to Thursday’s close price. Shares of Varun Beverages Ltd ended 2.71% down to settle at ₹1,274.95 apiece on the NSE on Thursday.

Edelweiss or Nuvama Equities is said to be the broker to the deal.

Earlier on Monday, Varun Beverages reported a better-than-expected quarterly profit as the company benefited from price increases and demand for its pricier drinks, including the Sting energy brand.

The company has reported a more than twofold jump in its consolidated net profit at ₹81.52 crore for the quarter under review, led by volume growth and improved net realizations.

The firm, which follows the calendar year as its financial year, posted a net profit of ₹32.59 crore during the corresponding quarter of last year.

The company’s revenue from operations during the reported quarter came in at ₹2,257.20 crore, up 27.89% as compared to ₹1,764.93 crore of the corresponding quarter of last year.

Its “net realization increased by 6 per cent to ₹164 primarily due to price hike in select SKUs, rationalised discounts/incentives, and improvement in mix of smaller SKUs (250ml) especially the energy drink – Sting, which has a higher net realization,” Varun Beverages Ltd (VBL) said in a regulatory filing.

The total expenses of the company came in at ₹2,176.83 crore, up 26.27 per cent in Q4 of 2022, as against ₹1,723.93 crore.

“The strong recovery in demand post the pandemic and our continued efforts towards expanding the distribution network across markets resulted in a 41 per cent growth in consolidated sales volume. Additionally, we achieved growth in realization per unit through strategic measures such as selective price hikes, rationalized discounts and incentives, and improved product mix,” said VBL Chairman Ravi Jaipuria.

“This allowed us to deliver revenue growth of 49 per cent and PAT growth of 108 per cent YoY on a consolidated basis in CY 2022,” Jaipuria said.