PepsiCo logs double-digit volume growth in the Indian market in 2021

Global food and beverages major PepsiCo on Thursday reported a double-digit volume growth in the Indian market in 2021.

PepsiCo's net revenue in 2021 from Africa, Middle East, South Asia (AMESA) division, which includes India, was up 32.91 per cent to USD 6.07 billion as against USD 4.57 billion earlier.

In the region, PepsiCo's "beverage unit volume grew 20 per cent, primarily reflecting double-digit growth in India and Pakistan", the New York-based company said in an earnings statement.

Besides, the Middle East experienced double-digit growth and Nigeria saw high single-digit growth, it added.

In the convenient foods segment, its unit volume grew 38 per cent in the AMESA division, primarily reflecting a 35-percentage-point impact of its acquisition of South Africa-based company Pioneer Foods.

This also included "double-digit growth in India and Pakistan and high-single-digit growth in the Middle East", it said.

In 2021, PepsiCo's operating profit from the region increased 43 per cent, primarily reflecting net revenue growth, a 31-percentage-point impact of the prior-year acquisition and divestiture-related charges associated with the acquisition of Pioneer Foods and productivity savings.

Overall, its global net revenue for the year ended December 25, 2021 rose 12.93 per cent to USD 79.47 billion, the company said.

PepsiCo Chairman and CEO Ramon Laguarta said, "Our full year net revenue growth meaningfully accelerated in 2021 versus the previous year and this gives us added confidence that the investments we have made in our people, brands, innovation, supply chain, go-to-market systems and digitization initiatives are working."

"For 2022, we expect to deliver 6 per cent organic revenue growth, which is at the high-end of our long-term target range and implies a strong acceleration in our organic revenue growth on a two-year basis," he added.