PepsiCo, in its second-quarter earnings report released on Thursday, revealed that its Indian business experienced high-single-digit organic revenue growth in Q2 2023. The company further noted significant market share gains in both the snacks and beverage segments within India.
“Our developing and emerging markets remained resilient and delivered double-digit organic revenue growth. Mexico, Turkey, Pakistan, Egypt, Poland, and Vietnam delivered double-digit organic revenue growth; India and China delivered high-single-digit organic revenue growth,” the company’s management stated in its remarks for the second quarter ended June 17.
However, in terms of volumes, PepsiCo witnessed a “mid-single-digit decline” in the snacks segment in India during the second quarter.
Commenting on the performance of Africa, Middle East and South Asia (AMESA) region, the company said, “Convenient foods unit volume declined 6 per cent, primarily reflecting a double-digit decline in South Africa, partially offset by double-digit growth in the Middle East and mid-single-digit growth in Pakistan. Additionally, India experienced a mid-single-digit decline.”
During this period, the beverage segment of the company’s India business experienced modest single-digit volume growth.
The company noted that it achieved market share gains in various international markets, including China, India, Saudi Arabia, Turkey, the Netherlands, South Africa, Belgium, and Pakistan, throughout the year.
Despite the challenges faced in the beverage segment, the company reported gaining market share in India. This positive development coincides with the efforts of Varun Beverages, the company’s key bottler in the country, as it has been actively expanding its manufacturing capacities and aggressively growing its distribution network.
Beverage manufacturers encountered difficulties during the summer season in India. Analysts attribute this to unseasonal rains in several regions and moderate temperatures, which resulted in a decline in out-of-home demand for the cold beverage segment. The summer season typically plays a crucial role in driving annual sales of carbonated soft drinks and juices in the country.
