Kathmandu: Barun Beverages, the company responsible for producing and selling popular soft drinks like Pepsi, Mirinda, and Mountain Dew in Nepal, has reported strong financial performance in the last fiscal year.
In just over eight months, the company generated nearly Rs 6 billion in revenue, with Rs 5.78 billion recorded by mid-April. This performance shows a slight increase compared to the past four years, where annual revenues ranged between Rs 6.54 billion and Rs 8.02 billion, indicating stable business growth.
While sales have seen moderate growth, the company’s profit margins have improved significantly. Over the last eight months, Barun Beverages achieved an operating profit of 28.4 percent of total revenue, up from 25.5 percent in the previous fiscal year.
This improvement can be attributed to the company’s strong market position in Nepal’s carbonated soft drink sector. Last year, Barun Beverages held 39 percent of the market share, which has now expanded to 45-46 percent, reinforcing its dominance in the industry.
A key factor behind the company’s rising profitability is its low reliance on debt. Barun Beverages has only utilized 48 percent of its borrowing capacity, with loans accounting for just one-third of its profit margin. This financial discipline has helped boost earnings.
However, the company faces some challenges, including high dependence on Mountain Dew, which makes up about 85 percent of its production. In Nepal, Mountain Dew is far more popular than Pepsi, with no major competitor in the same segment. Additionally, the company has experienced some working capital pressure due to shorter inventory storage and payment cycles.
Barun Beverages, a fully owned subsidiary of India’s Barun Beverages Pvt. Ltd., has a solid financial foundation. It has taken short-term loans worth Rs 3.47 billion and working capital loans of Rs 70 crore, with an additional borrowing capacity of Rs 65 crore. Notably, the company has no long-term debt, maintaining a healthy financial position.
Since 1985, Barun Beverages has been the authorized producer of PepsiCo brands in Nepal, including Pepsi, Mountain Dew, Mirinda, 7Up, and Aquafina.
The company operates production plants in Kathmandu and Nawalparasi, with a strong dealer network across the country.
With minimal financial risk—98 percent of receivables are bank-guaranteed—Barun Beverages remains a leading player in Nepal’s beverage market, poised for further growth while navigating industry-specific challenges.
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