INDIA – PepsiCo has announced robust performance in both its beverage and convenience foods segments in the Indian market during the first quarter of 2024, with high single-digit growth in beverage unit volumes and double-digit growth in the convenience foods business.
According to PepsiCo’s global earnings statement, the beverage unit volume witnessed a significant increase, while the convenience foods business recorded strong growth in India.
The company’s net revenue in the Africa, Middle East, and South Asia (AMESA) division, which includes the Indian market, rose by 2 percent to US$1.04 billion.
PepsiCo attributed the growth to organic volume growth, effective net pricing, and a partial offset of the impact of unfavorable foreign exchange.
The statement highlighted that in AMESA, beverages unit volumes grew by 2 percent, primarily driven by high single-digit growth in India, among other regions.
Additionally, PepsiCo’s convenience foods unit volume saw a notable increase of 4.5 percent, with double-digit growth reported in India, offsetting declines in other parts of the Middle East.
However, despite the strong performance in volume growth, PepsiCo’s operating profit in the AMESA region declined by 10 percent in the first quarter. This decline was attributed to increases in certain operating costs, including higher commodity costs such as packaging materials, sweeteners, and potatoes.
The company also noted that it gained year-over-year share of gourmet snacks in both China and India, reflecting its continued market presence and competitiveness in these regions.
Overall, PepsiCo reported a 2.26 percent increase in net revenue to US$18.25 billion in the first quarter, driven by significant volume improvement in its international business.
President and CEO Ramon Laguarta highlighted the strong performance of the international business and expressed confidence in the company’s outlook for the year.
“During the first quarter, our business remained active and performed well, with strong performance from our international business. We had sequential improvement in our volume trends, and year-over-year growth in our net -Years increased,” he said.
Looking ahead, PepsiCo reiterated its guidance for 2024, expecting at least 4 percent growth in organic revenues.
Despite challenges, including product recalls and tougher net revenue growth comparisons, the company remains optimistic about its growth prospects in the coming quarters.
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