BackPepsiCo reports double-digit organic revenue growth in India
The maker of Frito-Lay’s chips and Mirinda drinks beat street estimates; Pepsi’s net income for the first quarter stood at $4.26 billion
PremiumNEW DELHI : Snacking and beverage company PepsiCo on Tuesday said its India business reported a double-digit organic revenue growth for the 12 weeks ended 19 March 2022.
“Our developing and emerging markets remained resilient and delivered 18% organic revenue growth in the quarter, including double-digit organic revenue growth in Mexico, Brazil, Egypt, India, and Turkey, and mid-single-digit growth in South Africa and China," the company said in its first quarter earnings on Tuesday.
The maker of Frito-Lay’s chips and Mirinda drinks beat street estimates; Pepsi’s net income for the first quarter stood at $4.26 billion. The company raised full-year forecast for organic revenue growth.
However, in terms of volumes both foods and beverages reported high-single-digit growth in India.
In the AMESA region, including markets such as India, the company reported a net revenue growth of 14%—reflecting both organic volume growth and pricing actions taken by the company amid higher commodity costs.
“Convenient foods unit volume grew 10%, primarily reflecting double-digit growth in the Middle East and Pakistan. Additionally, South Africa experienced mid-single-digit growth and India experienced high single-digit growth," the company said.
Meanwhile, in the region the company’s beverage unit volumes grew 7%, on account of double-digit growth in Pakistan and high-single-digit growth in the Middle East and India.
In the region, operating profit increased 30%, led by net revenue growth and productivity savings. However, these impacts were partially offset by a 38-percentage-point impact of higher commodity costs, primarily in cooking oil and packaging material, and certain operating cost increases in the region.
Meanwhile, globally the company is stepping up focus on cost management by tightly managing discretionary expenses while judiciously investing for the long-term health and success of its business.
This is in the face of commodity pressures companies are facing worldwide.
PepsiCo will also sharpen revenue management capabilities across brands and packages while keeping a close eye on the consumer value proposition, the company added.
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