India market in a good place: PepsiCo chairman & CEO Ramon Laguarta

International business reports 11% revenue growth

Beverage major PepsiCo said it was bullish on international business for the coming year, calling out India as a market that will perform well for the company, while announcing its results for the first quarter ended March 22, even as it cut the overall earnings forecast for 2025 owing to tariff uncertainties raising supply chain costs.

 

“International business continues to be the largest growth engine for the company. We started the year at a good pace and we see the business continue those trends. We are seeing markets like India and Brazil are in a good place,” Ramon Laguarta, chairman and chief executive officer, PepsiCo, said during the post-earnings call with investors.

 

 

In the first quarter, the company’s international beverages business “performed well and delivered 11 per cent organic revenue growth. The growth was driven by performance in China, India, Egypt, Turkey, Mexico, the United Kingdom and Australia,” the management said in its prepared remarks.

 

Meanwhile, its international convenient foods business delivered 2 per cent organic revenue growth. “The growth was driven by Brazil, India, Egypt and Turkey,” the company stated. It added that the international business remains the company's largest growth engine, with India contributing significantly to this momentum.

 

PepsiCo has brands like Kurkure, Lay’s, Quaker Oats in foods and Pepsi, Mountain Dew in its drinks portfolio.

 

The global cola giant noted the challenges it faced in other regions. The company has revised its full-year earnings forecast, citing increased tariff costs and decreased consumer spending. It noted the 25 per cent tariff on imported aluminium and a 10 per cent tariff on concentrate produced in Ireland for the United States market. It now expects flat adjusted earnings per share compared to last year, down from earlier mid-single-digit growth projections.