Varun Beverages fell 7%, Q1 misses street estimates

Varun Beverages shares fell nearly 7% after the company's India volume growth came in below what the street was expecting.

The numbers:

Net profit: up 15.5% YoY to ₹1,521 crore from ₹1,317 crore

Revenue: up 21% YoY to ₹8,650.5 crore from ₹7,163 crore

EBITDA: up 17% YoY to ₹2,344 crore from ₹1,999 crore

EBITDA margin: 27.1% vs 28% a year ago

What’s happening: management said beverage demand remained strong through most of the summer season, with volume growth staying in the 20% range since March. 

However, April was an exception, with flat volume growth, pulling the overall quarterly volume growth down to 14.4%.

While revenue beat street expectations, most other key metrics were either in-line with or slightly below Street estimates, which disappointed investors.

Looking ahead, Varun Beverages continues to expand its manufacturing capacity and distribution network to meet rising demand and strengthen its position as one of PepsiCo's biggest bottling partners in international markets.