Varun Beverages, a company that sells drinks, did better than what people expected in the last three months of 2023. Even though there were unexpected rains during the busiest time of the year, Varun Beverages still sold a lot more drinks, both in India and in other countries, compared to the year before. But the company owes more money compared to last year because it spent a lot on improving its business and paying for future projects.During December 2023, the company sold more carbonated soft drinks and juices in both India and other countries, which helped it make more money. They sold each case for a bit more money than last year. This increase in sales led to a 20% increase in revenue. The company made more profit compared to last year, even though they had to spend more money on interest for loans.The company’s debt compared to its value and the money it makes is a bit higher than last year, but it’s still at a level that the company thinks is okay. They might need to borrow more money to buy a company in South Africa, but they believe they’ll be able to pay off their debts once they start making more money again.
What is the reason in a sudden increase?