PepsiCo posts 'high-single-digit organic revenue growth' in Q2 in India

PepsiCo posts high-single-digit-organic revenue growth in Q2

Global food and beverages major PepsiCo on Thursday said its Indian unit delivered a "high-single-digit organic revenue growth" in the second quarter of 2023.

The company's Convenient foods unit volume had a "mid-single-digit decline" in the June quarter, PepsiCo said in its global earnings statement.

Its beverage unit volume showed "low-single-digit growth" in the markets, including the Middle East and India, in the quarter which ended on June 17, 2023.

PepsiCo's net revenue in Africa, the Middle East, South Asia (AMESA) division, including India, declined 7.54 per cent to USD 1.56 billion as against USD 1.69 billion, primarily reflecting unfavourable foreign exchange and organic volume decline.

In the AMESA division, Convenient foods unit volume declined 6 per cent, primarily reflecting a double-digit decline in South Africa, partially offset by double-digit growth in the Middle East and mid-single-digit growth in Pakistan.

"Additionally, India experienced a mid-single-digit decline (in Convenient foods)," it said.

While its Beverage unit volume declined 3 per cent in AMESA. This primarily reflects "a double-digit decline in Pakistan and a mid-single-digit decline in Nigeria, partially offset by low-single-digit growth in the Middle East and India," it added.

PepsiCo's net revenue for the second quarter was at USD 22.32 billion, up 10.36 per cent.

In the June quarter, developing and emerging markets remained resilient and delivered double-digit organic revenue growth, as per the New York-based company.

PepsiCo owns popular brands such as Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew and Quaker.

Markets such as "Mexico, Turkey, Pakistan, Egypt, Poland, and Vietnam delivered double-digit organic revenue growth, and India and China delivered high-single-digit organic revenue growth," the remarks by PepsiCo's Management said.

According to the company, in the last six months (Year-to-date), it has gained savoury snack share in many of its international markets, including China, India, Saudi Arabia, Turkey, the Netherlands, South Africa, Belgium, and Pakistan.

While "for beverages, we gained market share in Mexico, Brazil, Turkey, India, Egypt, and Nigeria," it said.

"We are very pleased with our performance for the second quarter as our business momentum remains strong," the company's Chairman and CEO Ramon Laguarta said.

PepsiCo has also lifted the projections for 2023.

"As a result, we now expect our full-year organic revenue to increase 10 per cent (previously 8 per cent) and our core constant currency EPS to increase 12 per cent (previously 9 per cent)," Laguarta said. PTI KRH SHW