Shares of Varun Beverages in trade on April 26 spurted by as much as 4.7% to scale to its all time high price of Rs. 1147 per share. The reason for the sharp rise is that the company shall consider bonus share issuance on its earnings declaration date i.e. April 28, 2022.
Previously also, the company announced bonus share issuance in 2021 and 2019 in the ratio of 1:2 i.e. issuance of 1 equity share for every 2 shares held by the shareholder of the concern as on the record date.
In the previous December ended quarter, the company's income from operations expanded YoY but saw a decline sequentially to Rs. 1100.71 crore. Also for the said quarter the company became a loss making concern with losses at Rs. 19.75 crore from net profit of Rs. 145.92 crore reported in the previous quarter.
As per the Business Standard report, while consumer focussed firms struggle amid inflationary pressure, Varun Beverages tends to outperform. The company's volume growth within the sector of 10% during the March quarter is the highest in the consumer space. 3 years compounded annual growth rate of revenues at 22 per cent is also the best and highest across the FMCG value chain as per analysts.
Varun Beverages is the franchisee bottler of carbonated soft drinks and non-carbonated beverages sold under trademarks owned by PepsiCo. The Company produces and distributes products, such as Pepsi, Diet Pepsi and Seven-Up.
Shares of the company last at 9:40 am traded higher by 0.5% at Rs. 1100.3 per share on the NSE.