India's Varun Beverages quarterly profit rises on volume growth; packaging costs weigh on margins

Oct 30 (Reuters) - Varun Beverages VARB.NS reported a 13.8% rise in third-quarter profit on Friday, as higher sales volumes in India and international markets helped offset increased packaging costs.

PepsiCo's PEP.O biggest bottling partner in India reported a consolidated net profit of 8.28 billion rupees ($86.98 million) for the quarter ended September 30, compared to 7.28 billion rupees a year ago.

Here are some key details:

• Overall revenue rose 33.3% to 68.16 billion rupees in the third quarter, outpaced by total expenses, which jumped nearly 36%

• Gross margin declined by 334 bps to 53.1% during the quarter due to higher packaging material costs, the company said in its earnings statement

• Consolidated sales volume grew by 28.7%, driven by volume growth of 22.5% in India and 39.9% in international territories

• Varun Beverages is facing intensifying competition in India's ready-to-drink market as established rivals and new entrants expand aggressively across soft drinks, juices and packaged water

• Shares fell as much as 4.4% to 396.6 rupees after the results

($1 = 95.1900 Indian rupees)