INDIA – PepsiCo India, the food and beverages maker has said its India business recorded solid mid-single-digit organic revenue growth, as a result of stable macro conditions in the quarter ended June 16.
The quarter was also helped by continued expansion across its international market given a strong marketplace execution in the period.
According to analysts, improved earnings across consumer goods was attributed to the momentum of consumption demand and the receding impact of the goods and services tax in India.
Although the company’s soft drinks sales were low in India and oversees, its earnings exceeded analysts’ expectations led by its salty snacks business.
“We are pleased with the more than 6% organic revenue growth we saw in our developing and emerging market as a group,” said chief executive officer Indra Nooyi.
“The international results are in part a reflection of our efforts to increasingly lift and shift successful initiatives from one market to many and innovating on global brands in locally relevant ways.”
She added that PepsiCo has committed to voluntarily remove trans-fats from snacks by reducing added sugars, sodium and saturated fats across all markets.
“We are in millions of pantries and refrigerators worldwide.
So we know we have a tremendous opportunity and responsibility to use our scale to make a positive impact.”
PepsiCo whose iconic brands include Pepsi and Mountain Dew, Tropicana juices, Lay’s chips and Kurkure snacks has been struggling with a lower market share in the carbonated soft drinks business as consumers switch to healthier options.
In response the company has taken another turn to focus on selective categories to ensure profitable growth.
“We need to be very sure where we will put our investments. To widen market share, we need to grow at a faster pace than the industry,” said PepsiCo India president Ahmed El Sheikh in a May interview with ET Retail.