PepsiCo logs double-digit volume growth in Q3 in India

Recovery from the Covid-19 pandemic led to an increased consumer demand impacting positively the company's revenue

Global food and beverages major PepsiCo on Tuesday reported a double-digit growth in volumes in India for its third quarter ended September 2021, with recovery from the COVID-19 pandemic leading to an increased consumer demand impacting positively its revenue.

PepsiCo's net revenue from the Africa, Middle East, South Asia (AMESA) division, under which India comes, rose 33 per cent to USD 1.66 billion as against USD 1.25 billion.

In the AMESA division, PepsiCo's snacks unit volume reported a five per cent growth "primarily reflecting double-digit growth in India, the Middle East and Pakistan. Additionally, South Africa experienced low-single-digit growth", the company said in a statement.

It further said the beverage unit's volume grew 19 per cent, primarily reflecting double-digit growth in India. "Additionally, the Middle East, Pakistan and Nigeria each experienced double-digit growth."

According to PepsiCo, recovery from the COVID-19 pandemic in the region has contributed to a current-year "increase in consumer demand, which had a positive impact on net revenue, unit volume and operating profit performance".

Commenting on its international business growth, the company said it was broad-based with a double-digit organic revenue growth in both snacks and beverages, benefiting from its investments in higher advertising and marketing and increased manufacturing and selling capacity.

"Our third quarter international growth also featured double-digit organic revenue growth in Mexico, Brazil, Russia, India, Egypt, and China, high single-digit growth in South Africa, Australia, and Spain, and mid-single-digit growth in the UK," the company said in its management remarks.

Overall, PepsiCo's global net revenue growth was 6.81 per cent up to USD 20.18 billion, the company said.

PepsiCo Chairman and CEO Ramon Laguarta said, "We are pleased with our results for the third quarter as we delivered a strong net revenue growth, while carefully navigating a dynamic and volatile supply chain and cost environment."

He further said that given the company's year-to-date performance, it now expects the full-year organic revenue to increase about eight per cent and core constant currency earnings per share to increase at least 11 per cent.