PepsiCo reports double-digit growth for quarter ended September 3 in India

Global food and beverages major PepsiCo on Wednesday reported a double-digit volume growth in India for the quarter ended September 3, when it faced challenges such as higher commodity and operating costs. The company reported a mid-single-digit growth in the convenience foods unit volume in the Indian market, said PepsiCo's earning statement.

Net revenue in the third quarter ended September 3, 2022, from the Africa, Middle East, South Asia (AMESA) division under which India comes, was up 3.66 per cent to USD 1.72 billion as against USD 1.66 billion. This is "primarily reflecting effective net pricing, partially offset by a net decline in organic volume. Unfavourable foreign exchange reduced net revenue growth by 14 percentage points," the company said in its earnings statement.

Its "operating profit declined 14 per cent, primarily reflecting a 62-percentage points impact of higher commodity costs, primarily grains and packaging materials, certain operating cost increases and higher advertising and marketing expenses," said PepsiCo. These impacts were partially offset by the effective net pricing and productivity savings, it said.

In the AMESA zone, Pepsico "convenient foods unit volume declined 2 per cent, primarily reflecting a high-single-digit decline in South Africa, partially offset by double-digit growth in the Middle East and Pakistan and mid-single-digit growth in India". Its beverage unit volume grew 11 per cent, mirroring double-digit growth in India, said Pepsico.