PepsiCo reports double-digit revenue growth for Jan-Mar quarter in India

Global food and beverages major PepsiCo on Tuesday said it has posted a double-digit' organic revenue growth in the Indian market for the first quarter.

While on the volume side, the company has reported a "high-single-digit growth" for the Indian market for the convenient foods and beverages units, said a global earning statement from PepsiCo.

In an investors call after the results, PepsiCo Chairman and CEO Ramon Laguarta said India has reported a double-digit organic revenue growth for the quarter that ended on March 19, 2022.

"Our developing and emerging markets remained resilient and delivered 18 per cent revenue growth in the quarter including double-digit organic revenue growth in Mexico, Brazil, Egypt, India and Turkey and mid-single-digit growth in South Africa and China," said Laguarta.

PepsiCo's net revenue in the first quarter of 2022 from Africa, Middle East, South Asia (AMESA) division under which India comes, was up 13.70 per cent to USD 1 billion as against USD 0.88 billion, the company said in its earnings statement.

The convenient foods segment witnessed volume growth of 10 per cent in AMESA, primarily reflecting double-digit growth in the Middle East and Pakistan.

"Additionally, South Africa experienced mid-single-digit growth and India experienced high single-digit growth," it said.

The beverage segment saw volume growth of 7 per cent, in AMESA for the quarter that ended on March 19, 2022. This is "primarily reflecting double-digit growth in Pakistan and high-single-digit growth in the Middle East and India, partially offset by a high-single-digit decline in Nigeria, the company said.

PepsiCo's operating profit in the AMESA zone increased by 30 per cent, primarily reflecting the net revenue growth and productivity savings, the cola major said.

However, it was partially offset by a "38-percentage-point impact of higher commodity costs, primarily cooking oil and packaging material, and certain operating cost increases".

Overall, PepsiCo's global net revenue growth for the quarter was up 9.31 per cent to USD 16.20 billion, the company said.

Commenting on the results, Laguarta said: "For the first quarter, we delivered strong results which reflect our presence in growing, global categories and the investments we have made towards becoming an even Faster, even Stronger, and even Better company with PepsiCo Positive (pep+) at the centre of everything we do."

The company has also raised its revenue forecast for 2022 and now expects a growth rate of 8 per cent.

"Given the strength and resilience of our businesses to date, while reflecting higher than expected input cost inflation for the balance of 2022, we now expect our full-year organic revenue to increase 8 per cent (previously 6 per cent) and we continue to expect core constant currency earnings per share to increase 8 per cent," he said.