Global food and beverages major PepsiCo reported a 'double-digit' organic revenue growth in the Indian market in the second quarter ended in June 2022.
"Our developing and emerging markets remained resilient and delivered double-digit organic revenue growth in the quarter, including double-digit organic revenue growth in Mexico, Brazil, China, South Africa, India…," said PepsiCo in an earning statement.
PepsiCo's net revenue in the second quarter of 2022 from Africa, Middle East, South Asia (AMESA) division, under which India comes, was up 5.86% to $1.69 billion as against $1.60 billion, the company said in its earnings statement.
This primarily reflects "organic volume growth and effective net pricing, partially offset by a 10-percentage-point unfavourable impact of an extra month of net revenue in 2021 as we aligned Pioneer Foods' reporting calendar with that of our AMESA division," said PepsiCo.
In Q2, its convenient foods unit volume grew 10% in the AMESA, primarily reflecting "double-digit growth in the Middle East and India," said PepsiCo.
Similarly, its "beverage unit volume grew 28%, primarily reflecting double-digit growth in India. Additionally, the Middle East, Nigeria and Pakistan each experienced double-digit growth," it said.
Its operating profit for the quarter in the AMESA division increased by 14%, "primarily reflecting the net revenue growth and productivity savings".
However, these impacts were partially offset by an impact of "higher commodity costs, primarily packaging material and cooking oil, certain operating cost increases and higher advertising and marketing expenses".
Unfavourable foreign exchange also reduced operating profit growth by 7% points, said PepsiCo.
Overall, PepsiCo's global net revenue growth for the quarter was up 5.24% to $20.2 billion, the company said.
While sharing year-to-date market share performance, PepsiCo said it has gained savoury snack share in many of its international markets including China and India.
PepsiCo's savoury snack portfolio in India includes Doritos, Lays and Kurkure.
For the 24 weeks ended on Jun 11, 2022 PepsiCo's net revenue in the division was $2.7 billion.
Commenting on the results, Chairman and CEO Ramon Laguarta said, "We are pleased with our results for the second quarter as our business momentum continued despite ongoing macroeconomic and geopolitical volatility and higher levels of inflation across our markets."
The company has also improved its forward guidance for 2022 and expects a growth of 10%.
"Given our year-to-date performance, we now expect our full-year organic revenue to increase 10 per cent (previously 8 per cent) and we continue to expect core constant currency earnings per share to increase 8 per cent," he said.