Global food and beverages giant PepsiCo reported double-digit organic revenue growth in India for the third quarter of 2024. During an investor call, PepsiCo Chairman and CEO Ramon Laguarta highlighted͏͏ India’s͏͏ role,͏͏ stating,͏͏ “There͏͏ are͏͏ pockets͏͏ of͏͏ strength͏͏ in͏͏ International,͏͏ Southeast͏͏ Asia,͏͏ and͏͏ India͏͏ markets͏͏ that͏͏ are͏͏ growing͏͏ nicely.”
Strong͏͏ Performance͏͏ in͏͏ Beverage͏͏ and͏͏ Convenient͏͏ Foods:
PepsiCo͏͏ has͏͏ achieved͏͏ high-single-digit͏͏ growth͏͏ in͏͏ beverage͏͏ unit͏͏ volume͏͏ and͏͏ convenient͏͏ foods͏͏ unit͏͏ volume͏͏ in͏͏ the͏͏ Indian͏͏ market.
Continue͏͏ Exploring:͏͏ PepsiCo Chairman͏͏ Ramon͏͏ Laguarta͏͏ bullish͏͏ on͏͏ India’s͏͏ market͏͏ potential,͏͏ plans͏͏ major͏͏ investments
Developing͏͏ Markets͏͏ Drive͏͏ Growth:
According͏͏ to͏͏ PepsiCo’s͏͏ earnings͏͏ statement,͏͏ developing͏͏ and͏͏ emerging͏͏ markets,͏͏ including͏͏ India,͏͏ Egypt,͏͏ Turkey,͏͏ Poland,͏͏ and͏͏ Vietnam,͏͏ each͏͏ recorded͏͏ double-digit͏͏ organic͏͏ revenue͏͏ growth͏͏ for͏͏ the͏͏ third͏͏ quarter.
AMESA͏͏ Division͏͏ Faces͏͏ Revenue͏͏ Decline:
PepsiCo’s͏͏ net͏͏ revenue͏͏ in͏͏ the͏͏ Africa,͏͏ Middle͏͏ East,͏͏ and͏͏ South͏͏ Asia͏͏ (AMESA)͏͏ division,͏͏ which͏͏ includes͏͏ the͏͏ Indian͏͏ market,͏͏ fell͏͏ by͏͏ 4͏͏ percent͏͏ to͏͏ USD͏͏ 1.55͏͏ billion.
This͏͏ was͏͏ primarily͏͏ affected͏͏ by͏͏ adverse͏͏ foreign͏͏ exchange͏͏ rates͏͏ and͏͏ a͏͏ decline͏͏ in͏͏ organic͏͏ volume,͏͏ although͏͏ this͏͏ was͏͏ partially͏͏ mitigated͏͏ by͏͏ effective͏͏ net͏͏ pricing.
In͏͏ the͏͏ AMESA͏͏ division,͏͏ PepsiCo’s͏͏ overall͏͏ beverage͏͏ unit͏͏ volume͏͏ decreased͏͏ by͏͏ 2͏͏ percent,͏͏ largely͏͏ due͏͏ to͏͏ a͏͏ mid-single-digit͏͏ decline͏͏ in͏͏ the͏͏ Middle͏͏ East͏͏ and͏͏ a͏͏ double-digit͏͏ decline͏͏ in͏͏ Nigeria.
However,͏͏ PepsiCo͏͏ noted͏͏ that͏͏ this͏͏ was͏͏ “partially͏͏ offset͏͏ by͏͏ high-single-digit͏͏ growth͏͏ in͏͏ India.”
Likewise,͏͏ PepsiCo’s͏͏ convenient͏͏ foods͏͏ unit͏͏ volume͏͏ in͏͏ the͏͏ AMESA͏͏ division͏͏ fell͏͏ by͏͏ 3͏͏ percent,͏͏ attributed͏͏ to͏͏ declines͏͏ in͏͏ the͏͏ Middle͏͏ East͏͏ and͏͏ Pakistan.
PepsiCo͏͏ mentioned͏͏ that͏͏ this͏͏ was͏͏ “partially͏͏ mitigated͏͏ by͏͏ slight͏͏ growth͏͏ in͏͏ South͏͏ Africa͏͏ and͏͏ high-single-digit͏͏ growth͏͏ in͏͏ India.”
PepsiCo,͏͏ which͏͏ owns͏͏ well-known͏͏ brands͏͏ such͏͏ as͏͏ Lay’s,͏͏ Doritos,͏͏ Cheetos,͏͏ Gatorade,͏͏ Pepsi-Cola,͏͏ Mountain͏͏ Dew,͏͏ and͏͏ Quaker,͏͏ reported͏͏ a͏͏ net͏͏ revenue͏͏ decline͏͏ of͏͏ 0.6͏͏ percent͏͏ in͏͏ the͏͏ third͏͏ quarter,͏͏ reaching͏͏ USD͏͏ 23.31͏͏ billion.
“Our͏͏ businesses͏͏ demonstrated͏͏ resilience͏͏ in͏͏ the͏͏ third͏͏ quarter,͏͏ despite͏͏ lacklustre͏͏ category͏͏ performance͏͏ trends͏͏ in͏͏ North͏͏ America,͏͏ ongoing͏͏ effects͏͏ from͏͏ certain͏͏ recalls͏͏ at͏͏ Quaker͏͏ Foods͏͏ North͏͏ America,͏͏ and͏͏ business͏͏ disruptions͏͏ caused͏͏ by͏͏ escalating͏͏ geopolitical͏͏ tensions͏͏ in͏͏ some͏͏ international͏͏ markets.”
Optimistic͏͏ Outlook͏͏ for͏͏ Q4:
“Based͏͏ on͏͏ our͏͏ performance͏͏ thus͏͏ far͏͏ and͏͏ our͏͏ expectations͏͏ for͏͏ the͏͏ fourth͏͏ quarter,͏͏ we͏͏ now͏͏ anticipate͏͏ achieving͏͏ a͏͏ low͏͏ single-digit͏͏ increase͏͏ in͏͏ organic͏͏ revenue,”͏͏ said͏͏ Laguarta.
