Hindustan Coca-Cola Beverages reports 73% profit decline in FY25
Coca-Cola’s Indian bottling arm sees steep profit drop in FY25 as it advances divestment and refranchising initiatives.
INDIA – Hindustan Coca-Cola Beverages Pvt. Ltd (HCCB), the bottling arm of Coca-Cola in India, has reported a 73 percent decline in consolidated net profit to Rs 756.64 crore (US$86.15m) in the financial year ended March 31, 2025 (FY25), compared to Rs 2,808.31 crore (US$319.76m) in FY24.
According to financial data from business intelligence platform Tofler, the company’s consolidated revenue from operations fell by 9 percent to Rs 12,751.29 crore (US$1.45b) in FY25, down from Rs 14,021.55 crore (US$1.6B) recorded the previous year.
However, its total income, including other income, increased by 9.63 percent to Rs 12,864.36 crore (US$1.46B) during the period.
The significant drop in profitability has been attributed to a higher base effect in FY24, which included exceptional gains from the divestment of several regional bottling operations.
In that year, HCCB completed the sale of its operations in Rajasthan, Bihar, the North-East, and parts of West Bengal to existing bottlers—Kandhari Global Beverages, SLMG Beverages, and Moon Beverages—through a slump sale on a going concern basis.
“The group had realised an aggregate consideration of Rs 136.24 crore, net of customary working capital adjustments and deal-related costs,” the company stated. “The aggregate profit on the sale of the said undertakings, amounting to Rs 119.9 crore before tax, was disclosed as an exceptional item in the statement of profit and loss.”
During FY25, HCCB continued this divestment strategy, transferring its packaging, distribution, and non-alcoholic beverage businesses in specific territories under new business transfer agreements.
The company disclosed an aggregate profit of Rs 1,198.83 million (US$136.5M) (before tax) from these sales as another exceptional item.
Earlier this week, Coca-Cola announced the completion of its sale of a 40 percent stake in Hindustan Coca-Cola Holdings Pvt. Ltd—the parent company of HCCB—to Jubilant Bhartia Group in July 2025.
The transaction forms part of Coca-Cola’s ongoing global refranchising initiative aimed at optimizing local operations.
Commenting on the development, James Quincey, Chairman and CEO of The Coca-Cola Company, stated that the stake sale would help unlock growth potential in the Indian market, which he described as an emerging high-volume opportunity.
Meanwhile, in Africa, Coca-Cola Hellenic Bottling Company revealed plans to acquire a controlling 75 percent interest in Coca-Cola Beverages Africa for US$3.4 billion, with the deal expected to close next year.
Quincey noted that these moves mark further progress in completing Coca-Cola’s refranchising strategy launched in 2015.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates
