PepsiCo India has shown double digit unit volume growth at 19% for beverages, and 5% unit volume growth for its snacks division for the period of June-August 2021.
According to PepsiCo global chairman Ramon Laguarta, the recovery from the Covid-19 pandemic contributed to a current-year increase in consumer demand, which had a positive impact on net revenue, unit volume and operating profit performance.
Also the growth cycles a low base of a pandemic-hit last year and indicates higher demand across consumer-facing categories fuelled by month-on-month improvement in consumption and further stabilization of the macro-economic environment.
The March-June period had seen India hit by a devastating second wave of the Covid-19 pandemic, resulting in state-wise lockdowns, restricted timings of malls and marketplaces and closures of restaurants and hotels. However, in-home consumption of foods continued to grow, and starting August with lower Covid-19 cases, improved vaccination and easing of restrictions, out-of-home consumption also started to report higher numbers.
PepsiCo had reported double digit growth in the March-May 2021 period also on a low base. The beverage and snacks maker raised its full-year forecast after its quarterly earnings and revenue exceeded street expectations, with the company’s organic revenue up 9% in the quarter. “Beverage unit volume grew 19%, primarily reflecting double-digit growth in India. The snacks unit volume grew 5%,” the company said in its earnings statement. The April-June months contribute more than half the annual sales of the Rs. 20,000 crore organised packaged beverages category. Out-of-home channels typically account for over half of annual soft drinks sales.