Varun Beverages540180Beverages
Varun Beverages Q2 results showed gross margin contraction of 300 basis points due to higher packaging costs, but EBITDA margin contraction was contained via cost control
By ScoutQuest · · 1 min read
- Gross margin contraction
- 300 basis points
- EBITDA margin contraction
- 140 basis points
Heard on business television between 08:13:02 - 08:16:02 IST.
- Said higher packaging costs (preforms, shrink film, closures, cans) affected gross margins by 300 basis points in Q2.
- Said this pressure is likely to continue into Q3 and impact many other companies in Q4.
- Noted EBITDA margin contraction was contained to 140 basis points due to cost control measures.
- Cited this as an example of India Inc's broader template of tightening the belt amid cost pressures, similar to COVID and earlier quarters.
- Warned Q3 could see elevated reported margin pressure once inventory gains fade, even if supply chain/geopolitical issues persist.
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