KATHMANDU: Varun Beverages (Nepal) Private Limited has recorded an operating revenue of NPR 5 billion 870 million (NPR 5.87 billion) during the first nine months of the financial year 2082/83.
The company previously posted an operating revenue of NPR 8 billion 547 million (NPR 8.54 billion) in the fiscal year 2081/82, which marked a 10.32% increase (NPR 800 million) compared to the fiscal year 2080/81, when earnings stood at NPR 7 billion 747 million (NPR 7.74 billion).

Historical revenue trend
Over the past decade, the company’s operating revenue has fluctuated across several fiscal years, beginning with NPR 5 billion 99 million 20 thousand in FY 2073/74, followed by NPR 6 billion 92 million 20 thousand in FY 2074/75, and NPR 6 billion 87 million 70 thousand in FY 2075/76. Performance continued with NPR 5 billion 14 million 10 thousand in FY 2076/77, NPR 6 billion 54 million 20 thousand in FY 2077/78, and NPR 8 billion 2 million 40 thousand in FY 2078/79. Prior to recent milestones, the company registered an operating revenue of NPR 7 billion 62 million 70 thousand in FY 2079/80.

Market dominance
Established in 1985, Varun Beverages (Nepal) is the official bottler and manufacturer of PepsiCo beverages in Nepal. Operating as a wholly-owned subsidiary of India’s Varun Beverages Limited, the company is headquartered in Sinamangal, Kathmandu, with production plants situated in Pepsicola, Kathmandu, and Nawalparasi.
The company manufactures and distributes popular carbonated and non-alcoholic beverages in the Nepali market, including Pepsi, Mountain Dew, Slice, Mirinda, 7Up, Aquafina, soda, and Sting. According to the company, it captured approximately 43% of the market share by value in the domestic carbonated soft drinks sector during the first nine months of the previous fiscal year. Notably, Mountain Dew alone accounts for 83% to 86% of the company’s total revenue in recent years.
Profitability, Margins, and Bank Debt
During the review period, the company’s operating profit margin rose to 27.6%, up from 25.5% in the previous year.
As of April 2026, the company has utilized NPR 3 billion 473 million in credit facilities from various banks and financial institutions, leaving roughly 52% (NPR 582 million) of its approved credit limit unused.

Financial adjustments
Varun Beverages faced disputed tax liabilities totaling approximately NPR 3.30 billion concerning Value Added Tax (VAT), income tax, and excise duties. However, relevant regulatory authorities recently reduced these claims by nearly 69%. With the final verdict still pending at the Supreme Court, the company is closely monitoring the situation.
Following the reduction in disputed liabilities, the company reversed an accounting provision of about NPR 814 million that had been set aside for taxes the previous year. Furthermore, the company has already made necessary financial arrangements for approximately 73% of its remaining disputed liabilities.

The company continues its strong streak of distributing a major share of its profits as cash dividends. It distributed a 102% dividend from the profits of FY 2080/81 and a 92% dividend from the profits of FY 2081/82.

Varun Beverages noted that its profitability is directly impacted by fluctuations in raw material prices, particularly sugar and beverage concentrates. A reduction in the sugar import tariff from 30% to 15% last fiscal year positively boosted profit margins; however, the company cautioned that adverse shifts in future government policies could impact profitability. Raw material costs account for 40% to 43% of the company’s total operating expenses.