2 min read.Updated: 13 Jul 2021, 08:06 PM ISTLivemint
The maker of Kurkure snacks and Mountain Dew beverages said it reported market share gains in the beverages business in India, in the year-to-date period
Food and beverage company PepsiCo Inc., on Tuesday reported a double-digit volume growth both in its foods and beverages business in India for the 12 weeks ended June 12, 2021, or the second quarter, the company said announcing its global earnings.
The maker of Kurkure snacks and Mountain Dew beverages said it also reported market share gains in the beverages business in India, in the year-to-date period. It also announced earnings for 24-weeks ended 12 June.
To be sure, second quarter results for its international markets cover months of March, April and May. The period was marked by India’s second, more severe covid-19 wave and led to temporary closure of markets and restrictions in mobility. Meanwhile, this year the company could have benefited from a low base quarter in the year ago period when India was observing a strict lockdown.
The period is also peak summer season and sees brisk business for most beverage companies.
In India it clocked double-digit organic revenue growth, the company said, as part of its international business review for the second quarter.
“Many of our international markets delivered strong results including double-digit organic revenue growth in Mexico, Russia, Brazil, Turkey, Egypt, India, Germany, France, Spain, and South Africa, high-single-digit growth in Poland and mid-single-digit growth in the U.K.," it said.
For the 12 weeks ended June 12, 2021, in the AMESA or the Africa, Middle East and South Asia Region, the company’s snack unit volume grew 116%, largely reflecting the impact of its Pioneer Foods acquisition in Africa and double-digit growth in India and Pakistan.
In the same period, the company’s beverage unit volume grew 38%, “primarily reflecting a 4-percentage-point impact of our Pioneer Foods acquisition and double-digit growth in India," it said
Meanwhile, it reported market share gains in the beverages business in India.
“Year to date, we have also gained savory market share in many of our largest international markets, including Mexico, Brazil, China, and Russia and we gained beverage market share in Egypt, Mexico, China, India, and Russia," it said.
On Tuesday, the company raised its full-year earnings forecast aided by re-opening and vaccination drives in large markets, according to a news report by Reuters. Meanwhile, the company’s net revenue rose 20.5% to $19.22 billion in the quarter ended June 12.
The company’s top management however said that parts of Asia, dealing with another surge in covid-19 infections, could take time to return to normalcy.
“The rest of Asia is a bit more challenged…when you think about Vietnam, Thailand, you know Japan, even Australia there are a bit more challenges there, India…consumers going back to normal behaviour—so that might take a little bit of time. Obviously, Africa, Middle East, India…still a lot of challenges there with running normal operations in all those markets. So, it will be a while before those markets go back to normality," the company’s top management said in its investor webcast on Tuesday.
On its 2021 outlook and guidance for international markets the company said it expects these markets to “perform well" despite an uneven recovery across geographies as vaccination efforts and mobility trends vary.
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