PepsiCo’s Indian business experienced substantial growth, with double-digit increases in beverage unit volumes during the third quarter of 2023. However, their “convenient foods business” saw a mid-single-digit decline in unit volume for the same period. The net revenue for PepsiCo’s Africa, Middle East, and South Asia (AMESA) division, which includes India, declined by 6.43% to USD 1.61 billion, mainly due to the weakening Egyptian pound and a net organic volume decline, partially offset by effective net pricing.
In the AMESA region, PepsiCo reported a 3% growth in beverage unit volumes, driven by double-digit growth in India and mid-single-digit growth in the Middle East. However, the “convenient foods unit volume” declined by 3%, primarily reflecting mid-single-digit declines in South Africa and India, offset by low-single-digit growth in the Middle East and Pakistan.
PepsiCo’s AMESA division also reported an 11% decline in operating profit, primarily attributed to higher commodity costs, including packaging materials, sweeteners, and grains, driven by transaction-related foreign exchange.
PepsiCo’s net revenue for the third quarter increased by 6.7% to USD 23.45 billion, and they gained market share in several international markets, including China, India, and Turkey for savoury snacks and Mexico, Brazil, Turkey, China, Thailand, Egypt, and Nigeria for beverages.
The giant beverage company expressed confidence in their future performance, citing investments in their brands, manufacturing capacity, supply chain, and technology as factors contributing to their continued success. Chairman and CEO Ramon Laguarta emphasized their commitment to modernizing the company and executing their strategic framework.