Double-digit volume growth in beverages category in India: PepsiCo

PepsiCo saw double-digit volume growth in the beverages category in India in the third quarter ended 9 September. However, India recorded a mid-single-digit volume decline for its convenient food category.

The US-headquartered food and beverage giant's international business delivered a 12 per cent organic revenue growth this quarter.

“Each of our international divisions reported strong organic revenue growth, led by AMESA, which delivered double-digit organic revenue growth in both beverages and convenient foods during the quarter,” PepsiCo said in its prepared management remarks after announcing its results.

In the AMESA region, volumes in the convenient food category fell 3 per cent, primarily driven by a loss in volumes in India and South Africa, and partially offset by low-single-digit growth in the Middle East and Pakistan.

In the beverages category, volumes grew 3 per cent primarily reflecting the double-digit growth in India and mid-single-digit growth in the Middle East. This growth, however, was partially offset by a high-single-digit decline in Pakistan and a low-single-digit decline in Nigeria.

In the 36 weeks ended 9 September, unit volumes in convenient foods declined 5 per cent. India experienced a mid-single-digit decline. Meanwhile, volumes in the beverage category grew 2 per cent, primarily reflecting double-digit growth in India and mid-single-digit growth in the Middle East, partially offset by a double-digit decline in Pakistan and a low-single-digit decline in Nigeria.

On a year-to-date basis, the management said the company has gained savoury snack share in many international markets, including China, India, Turkey, South Africa, and Pakistan among others.

In its Q2 update, Indian FMCG major Dabur had said that it expects to register a mid to high-single-digit revenue growth due to a mild summer and slightly deficient monsoon.