USA – PepsiCo, an American multinational food, snack, and beverage corporation, has reported a “mid-single digit” growth in the Indian market for the year 2023, contributing to the company’s global net revenue of US$91.47 billion, according to their latest earnings report. 

While developing and emerging markets like China and India each delivered mid-single-digit growth for the full year, PepsiCo’s net revenue in the Africa, the Middle East, South Asia (AMESA) division, including India, witnessed a decline of 4.64 percent.  

This decline was primarily attributed to a 21-percentage-point impact of unfavorable foreign exchange, driven primarily by the weakening of the Egyptian pound, and a net organic volume decline, partially offset by effective net pricing. 

In the AMESA region, PepsiCo’s beverage unit volumes grew by 2 percent, primarily reflecting double-digit growth in India and low-single-digit growth in the Middle East.  

However, the convenient foods unit volume declined by 3.5 percent, with a high-single-digit decline in South Africa, partially offset by high-single-digit growth in the Middle East and low-single-digit growth in Pakistan. 

Despite a low-single digit decline in India, PepsiCo’s operating profit in AMESA grew by 21 percent. For the December quarter, PepsiCo’s net revenue in AMESA declined by 3.72 percent to US$1.93 billion. 

Looking forward, PepsiCo is optimistic about the future, forecasting at least a 4 percent growth in organic revenue in 2024.  

Chairman and CEO Ramon Laguarta expressed confidence, stating, “We are confident that our businesses will perform well in 2024 in the context of changing marketplace conditions. Category growth rates are normalizing as consumer behaviors largely revert to pre-pandemic norms, and net revenue realization moderates as inflationary pressures are expected to abate.” 

Meanwhile, the company’s North American beverage unit saw its volume in the fourth quarter shrink by 6 percent. During the three months ending Dec. 30, PepsiCo increased prices on its products by an average of 9 percent. 

“Organic volume performance was impacted by a moderation in category growth as consumer budgets have been affected by elevated borrowing costs and lower personal savings, which have driven preferences towards smaller pack sizes and immediate consumption channels,” the company said in statement. 

PepsiCo’s food portfolio includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. 

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