PepsiCo, a major player in the global beverage and food industry, reported on Friday a “mid-single-digit” growth in the Indian market for 2023. Globally, PepsiCo achieved a net revenue of USD 91.47 billion in 2023, marking a growth of 5.9 percent, according to the latest earnings report.
For the full year, developing and emerging markets such as “China and India each delivered mid-single-digit growth”, PepsiCo said.
However, PepsiCo’s net revenue in the Africa, Middle East, South Asia (AMESA) division, including India, stood at USD 6.14 billion, reflecting a decline of 4.64 percent.
This “primarily reflected a 21-percentage-point impact of unfavourable foreign exchange, driven primarily by the weakening of the Egyptian pound, and a net organic volume decline, partially offset by effective net pricing,” it said.
Within the region, PepsiCo noted a 2 percent increase in beverage unit volumes, with notable growth driven by double-digit expansion in India and low-single-digit growth in the Middle East.
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Nevertheless, the volume of its convenient foods unit experienced a decrease of 3.5 percent. This decline was predominantly driven by a high-single-digit decrease in South Africa, partially counterbalanced by high-single-digit growth in the Middle East and low-single-digit growth in Pakistan.
“Additionally, India experienced a low-single-digit decline,” it said.
However, its operating profit in AMESA grew 21 per cent, it added.
For the December quarter, PepsiCo’s net revenue in AMESA declined by 3.72 percent to USD 1.93 billion.
PepsiCo said it is expecting “at least 4 per cent organic revenue growth” in 2024.
“We are confident that our businesses will perform well in 2024 in the context of changing marketplace conditions. Category growth rates are normalising as consumer behaviours largely revert to pre-pandemic norms and net revenue realisation moderates as inflationary pressures are expected to abate,” said Chairman and CEO Ramon Laguarta.
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