PepsiCo, has announced a strong “high single-digit growth” in its beverage unit volume in the Indian market for the first quarter of 2024. The company’s convenient food business has also reported impressive “double-digit growth” in the country during the same period, according to the global earnings statement released by PepsiCo.
The net revenue of PepsiCo’s Africa, Middle East, and South Asia (AMESA) division, encompassing the Indian market, experienced a notable increase of 2 percent, reaching USD 1.04 billion. This growth, as stated by the company, is attributed to “organic volume growth and effective net pricing,” partially offsetting the impact of unfavourable foreign exchange rates.
In the AMESA region, PepsiCo’s beverage unit volume recorded a 2 percent growth, driven by a mid-single-digit increase in the Middle East and a high single-digit growth in India. Similarly, the convenience food unit volume witnessed a growth of 4.5 percent, primarily fueled by high-single-digit growth in South Africa and double-digit growth in India, albeit offset by a double-digit decline in the Middle East.
Despite the impressive growth in volume, PepsiCo faced a decline of 10 percent in operating profit in the AMESA region during the first quarter. This decline is attributed to certain operating cost increases, including a 17-percentage-point impact of higher commodity costs such as packaging materials, sweeteners, and potatoes. Additionally, adjustments related to the sale of a non-strategic brand last year contributed to the decline.
PepsiCo’s international business, buoyed by notable volume improvements and strong organic revenue growth, contributed significantly to the overall revenue growth. The company’s net revenue for the first quarter stood at USD 18.25 billion, representing a 2.26 percent increase over the previous year.
Looking ahead, PepsiCo maintains its earlier guidance for 2024 and anticipates at least a 4 percent increase in organic revenue, reflecting its commitment to sustained growth and performance excellence in the global market.