Global food and beverage giant PepsiCo reported an 11% growth in its international beverages business for the first quarter ended March 22, 2025, driven by strong performances in key markets including India, China, Egypt, and Mexico.
India emerged as a standout contributor not only to beverages but also to the company’s international convenient foods business, which grew by 2% during the quarter. “Our international convenient foods business delivered 2% organic revenue growth, with India, Brazil, Egypt, and Turkey leading the gains,” PepsiCo stated in its Q1 earnings release.
The company’s international operations, which now form the largest growth engine for PepsiCo, posted an overall organic revenue growth of 5% in Q1. Chairman and CEO Ramon Laguarta expressed confidence in the momentum continuing through the year, despite macroeconomic challenges. “We’ve started the year at a good pace, and the international business continues to be in a positive place, especially in markets like India,” he said during the earnings call.
PepsiCo’s net revenue for the quarter declined 1.81% year-on-year to USD 17.9 billion, while operating profit dropped 4.9% to USD 2.58 billion. The company attributed this dip primarily to adverse foreign exchange impacts.
As part of its global restructuring, PepsiCo has realigned its business segments, creating a dedicated International Beverages Franchise segment. Its convenient foods portfolio has been split into three new segments—Latin America Foods, Europe, Middle East and Africa (EMEA); and Asia Pacific Foods, under which the India market now falls.
Looking ahead, PepsiCo warned of continued volatility in the global economic environment. “While our business trends remain resilient, we anticipate elevated levels of uncertainty for the rest of 2025, particularly in global trade, which may drive up supply chain costs,” the company noted.
For fiscal 2025, PepsiCo maintained its forecast of low single-digit organic revenue growth and a core effective tax rate of 20%.