PepsiCo on Tuesday said it has registered double-digit revenue growth in India in the third quarter of 2024.
Highlighting India’s role, PepsiCo Chairman and CEO Ramon Laguarta, in an investor call, said: “There are pockets of energy in international markets, in Southeast Asia and in India that are growing well”.
PepsiCo reported high-digit growth in beverage unit volume and Light meal unit volume in the Indian market.
“In the third quarter, developing and emerging markets such as India, Egypt, Turkey, Poland, and Vietnam each delivered double-digit revenue growth,” according to an earnings statement from PepsiCo.
PepsiCo’s net profit in the Africa, Middle East, South Asia (AMESA) division, where the Indian market enters, fell 4 percent to USD 1.55 billion.
This has had a major impact on negative foreign trade and a decline in the volume of organics, which have been purchased less at effective prices.
On the AMESA side, PepsiCo’s overall beverage unit volume decreased 2 percent, primarily reflecting a mid-single-digit decline in the Middle East and a double-digit decline in Nigeria.
However, it was “partially affected by high single-digit growth in India,” PepsiCo said.
Similarly, PepsiCo’s food unit volume fell three percent in the AMESA segment due to declines in the Middle East and Pakistan.
Again, it was “slightly hampered by slow growth in South Africa and high-digit growth in India”, PepsiCo said.
Total revenue for PepsiCo, which owns popular brands such as Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew and Quaker, in the third quarter fell 0.6 percent to USD 23.31 billion.
“Our businesses remained strong in the third quarter, despite reduced operating conditions in North America, ongoing impacts related to certain recalls at Quaker Foods in North America and business disruptions due to increased geopolitical tensions in certain international markets.
“Looking at our performance to date and our outlook for the fourth quarter, we now expect to deliver low single-digit organic revenue growth,” Laguarta said.
