PepsiCo reports growth in the Indian beverage market

New Delhi: PepsiCo reported a "high single-digit growth" in its beverage unit volume in India during the first quarter of 2024. The company's convenience food business also saw a "double-digit growth" in the country.

PepsiCo's net revenue in the Africa, Middle East, and South Asia (AMESA) division, which includes India, rose by 2 per cent to $1.04 billion.

This growth was driven by organic volume growth and effective net pricing, partially offset by unfavourable foreign exchange impact.

In AMESA, PepsiCo's beverage unit volume increased by 2 per cent, primarily due to mid-single-digit growth in the Middle East and high single-digit growth in India.

Its convenient food unit volume grew by 4.5 per cent, primarily reflecting high-single-digit growth in South Africa and double-digit growth in India, offset by a double-digit decline in the Middle East.

However, PepsiCo's operating profit in AMESA declined by 10 per cent in the first quarter due to certain operating cost increases, including higher commodity costs and adjustments related to the sale of a non-strategic brand last year.

PepsiCo also noted gains in savoury snack share in China and India year-to-date. The company's net revenue in the first quarter increased by 2.26 per cent to $18.25 billion, driven by notable volume improvements in the international business.

Chairman and CEO Ramon Laguarta highlighted the strong performance of the international business despite challenges. Looking ahead, PepsiCo maintained its guidance for 2024, expecting at least a 4 per cent increase in organic revenue.