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Varun beverages Likely to witness higher gross and operating margins Stock of the day

10 Jan , 2024   By : Debdeep Gupta


Varun beverages Likely to witness higher gross and operating margins Stock of the day

VBL is one of the leading players in the beverage industry with franchise rights across the Indian sub-continent and African region. Capex completion will lead to higher earnings growth in India while an increase in distribution reach in general trade will lead to higher penetration and growth. VBL will focus on non-carbonated drinks like dairy, juices, and sports drinks which will lead to bigger addressable markets. Non-carbonated drinks have higher realization and better margin profile than carbonated drinks. With the South African acquisition, VBL will mirror the same strategy that it has followed in India which will lead to a higher market share of Pepsico products.

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