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FMCG stock falls 6% after reporting 69% QoQ decline in net profits

News by Aliceblue News Desk

11 Feb 2025

FMCG stock falls 6% after reporting 69% QoQ decline in net profits

Introduction:

Leading beverage company reported a 36.11% YoY increase in net profit for Q3 FY2025, despite a sharp 68.89% QoQ decline. Revenue surged 39.78% YoY, though it dropped 22.58% QoQ, reflecting strong annual growth amid sequential challenges.

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Share price movement of Varun Beverages:

On February 11, 2025, Varun Beverages Ltd opened at ₹553.00, up 0.81% from its previous close of ₹548.55. The stock reached a high of ₹555.90, a 1.33% increase, and a low of ₹511.45. By 2:00 PM, it traded at ₹516.20, down 5.90%, with a market cap of ₹1,74,621.18 crore.

Varun Beverages Reports QoQ Decline:

Varun Beverages Limited reported a net profit of ₹195.6 crore in Q3 FY2025, marking a sharp 68.89% quarter-on-quarter (QoQ) decline from ₹628.8 crore in Q2 FY2025. However, on a year-on-year (YoY) basis, net profit grew 36.11% from ₹143.7 crore in Q3 FY2024.

Revenue from operations stood at ₹3,817.6 crore in Q3 FY2025, reflecting a 22.58% QoQ decline from ₹4,932 crore in the previous quarter. On a YoY basis, revenue surged 39.78% from ₹2,730.9 crore in Q3 FY2024, highlighting strong annual growth despite sequential weakness.

Total income fell 22.04% QoQ to ₹3,862.2 crore from ₹4,956.3 crore in Q2 FY2025. However, compared to ₹2,740 crore in Q3 FY2024, it registered a 41.01% YoY increase. Despite a sharp QoQ decline, the company demonstrated robust YoY growth in revenue and profit.

Stock performance of Varun Beverages for Period of 1 week, 6 months and 1 year:

Varun Beverages Ltd recorded a 6.50% decline over the past week, while its six-month performance saw a 6.22% drop. Over the past year, the stock fell 1.31%, reflecting consistent downward pressure despite strong long-term business fundamentals.

Also Read: Fertilizer stock falls 5% after its net profit decreases by 70% YoY

Shareholding pattern of Varun Beverages:

All values in %Dec 2024Sep 2024Jun 2024
Promoter60.20%62.70%62.70%
FII25.30%24.20%25.30%
DII7%5.00%4.50%
Public7.50%8%7.50%
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About Varun Beverages:

Varun Beverages Ltd (NSE: VBL) is a key player in the beverage industry and one of PepsiCo’s largest franchisees globally. It produces and distributes Pepsi, Seven-Up, Mirinda, Mountain Dew, Tropicana, and other beverages across various markets.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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