PepsiCo logs double-digit beverage growth in India during Jul-Sept quarter

PepsiCo said its Indian business delivered a "double-digit growth" in beverage unit volumes in the third quarter of 2023.

However, its "convenient foods business" had a "mid-single-digit" decline in unit volume in the September quarter, according to a global earnings statement from the food and beverages major.

PepsiCo's net revenue in Africa, the Middle East, South Asia (AMESA) division, including India, declined 6.43% to USD 1.61 billion as against USD 1.73 billion, "driven primarily by the weakening of the Egyptian pound, and a net organic volume decline, partially offset by effective net pricing".

In AMESA, Pepsico's "beverage unit volume grew 3 per cent, primarily reflecting double-digit growth in India and mid-single-digit growth in the Middle East..." it said.

Its "convenient foods unit volume declined 3%, primarily reflecting mid-single-digit declines in South Africa and India, partially offset by low-single-digit growth in the Middle East and Pakistan." Moreover, the operating profit of PepsiCo's AMESA division declined 11%.

PepsiCo follows a January to December fiscal.

This primarily reflects the "impact of higher commodity costs, primarily packaging materials, sweeteners and grains, largely driven by transaction-related foreign exchange," it added.

PepsiCo, which owns popular brands such as Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew and Quaker, posted a 6.7% increase in net revenue to USD 23.45 billion for the third quarter.

On a year-to-date basis, PepsiCo has gained savoury snack share in many international markets, including China, India, and Turkey and for beverages, it gained market share in Mexico, Brazil, Turkey, China, Thailand, Egypt, and Nigeria, it added.

The New York-headquartered company said its third quarter featured "strong, broad-based organic revenue growth".

"The benefits from our net revenue management actions moderated as planned, while organic volume for our global beverage and convenient food businesses each posted a moderate decline," it said.

"We believe our businesses can continue to perform well in the coming years with category growth normalising, as we have made numerous investments in our brands, manufacturing capacity, go-to-market systems, supply chain, technology, and people, to execute against our strategic framework and modernize our company," PepsiCo Chairman and CEO Ramon Laguarta said.

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