 "India beverage dip weighs on PepsiCo Q2, global growth stays firm")
Beverage major PepsiCo witnessed a decline in its beverage business in India in the 12 weeks period ended June 14, as early rains spoiled sales of summer centric fast-moving consumer goods (FMCG) in the country.
The American beverage and snack maker’s international beverages business “performed well and delivered 9 per cent organic revenue growth,” the company said in its prepared management remarks after announcing its results.
However, in the 10-Q form, it noted that 1 per cent unit volume gains in the international beverage franchise business made during the 12 weeks was offset by a decline in India.
The company’s beverage share has been aided by the performance of trademark Pepsi, which has been buoyed by the expansion and success of low and no sugar offerings which comprise nearly 60 per cent of Pepsi’s volume mix (in key anchor markets) and are available in more than 115 countries.
“Pepsi has gained share in many markets year-to-date, including large markets such as China, India, Mexico, Brazil and the UK,” the prepared remarks added.
Meanwhile, its international convenient foods business delivered 4 per cent organic revenue growth in the second quarter – which accelerated versus the previous quarter. “The growth was driven by good performance in markets including Mexico, Brazil, Colombia, India, Egypt, Türkiye, Saudi Arabia and Thailand,” it stated.
Meanwhile, in the Asia Pacific region, unit volume, grew 5 per cent, primarily reflecting growth in India, Thailand, Australia and China.
“We’re encouraged by the acceleration in our net revenue growth versus the previous quarter with our businesses effectively navigating through a challenging environment. Our international business momentum continued,” Ramon Laguarta, chairman and chief executive officer, PepsiCo stated in an earnings release.
“As we look ahead, we will continue to build upon the successful expansion and growth of our International business and accelerate initiatives to improve our North America business performance,” he added.
PepsiCo has brands like Kurkure Lays, Quaker Oats in foods and Pepsi, Mountain Dew and in its beverage portfolio.