PepsiCo reports double-digit Q2 growth in India despite Covid second wave

Global food and beverage major PepsiCo on Tuesday reported double-digit growth in India in second quarter, despite the market being severely hit by the second wave of the pandemic.

PepsiCo's net revenue from the Africa, Middle East, South Asia (AMESA) division under which India comes, was at USD 1.6 billion in the quarter, up 62.97 per cent as against USD 0.98 billion in the year-ago period.

PepsiCo's second quarter stands for March-April-May.

In the AMESA division, PepsiCo's snacks unit volume reported "double-digit growth in India and Pakistan and mid-single-digit growth in the Middle East, partially offset by a high-single-digit decline in South Africa," said PepsiCo in an earning statement for Q2.

It further said,"Beverage unit volume grew 38 per cent, primarily reflecting a 4-percentage-point impact of our Pioneer Foods acquisition and double-digit growth in India."

Additionally, the Middle East and Pakistan each experienced double-digit growth and Nigeria experienced mid-single-digit growth, it added.

"The recovery from the COVID pandemic contributed to a current-year increase in consumer demand, which had a positive impact on net revenue, unit volume and operating profit performance," it said.

Overall, PepsiCo's global net revenue growth was up 20.52 per cent to USD 19.21 billion, the New York-based company said in a statement.

"As mobility trends improved, our international beverage business accelerated and delivered 22 per cent organic revenue growth, while our international snack business delivered 11 per cent organic revenue growth," said PepsiCo.

In the first half (H1), AMESA region reported a net revenue of USD 2.48 billion as against USD 1.61 billion.

"Beverage unit volume grew 26 per cent, primarily reflecting a 4-percentage-point impact of our Pioneer Foods acquisition and double-digit growth in India and Pakistan," it said.

Over the outlook, PepsiCo said, it expects its international markets to perform well despite an uneven recovery across geographies as vaccination efforts and mobility trends vary.