PepsiCo reports double-digit organic revenue growth in Indian market for Q3

Global food & beverages major PepsiCo on Tuesday said it has registered a double-digit organic revenue growth in India for the third quarter of 2024.

Highlighting India's role, PepsiCo Chairman and CEO Ramon Laguarta, in an investor's call, said: "There are pockets of strength in International, Southeast Asia and India markets that are growing nicely".

PepsiCo has reported a high-single-digit growth in its beverage unit volume and Convenient foods unit volume from the Indian market.

"For the third quarter, developing and emerging markets such as India, Egypt, Turkey, Poland, and Vietnam each delivered double-digit organic revenue growth," according to the earning statement from PepsiCo.

PepsiCo's net revenue in the Africa, the Middle East, South Asia (AMESA) division, in which the Indian market comes in, was down 4 per cent to USD 1.55 billion.

This was mainly impacted by unfavourable foreign exchange and an organic volume decline, which was partially offset by effective net pricing.

In the AMESA division, PepsiCo's overall beverage unit volume declined 2 per cent, primarily reflecting a mid-single-digit decline in the Middle East and a double-digit decline in Nigeria.

However, it was "partially offset by high-single-digit growth in India," said PepsiCo.

Similarly, PepsiCo's Convenient foods unit volume declined 3 per cent in the AMESA division due to declines in the Middle East and Pakistan.

Again it was "partially offset by slight growth in South Africa and high-single-digit growth in India", said PepsiCo.

Net revenue of PepsiCo, which owns popular brands like Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew and Quaker, in the third quarter was down 0.6 per cent to USD 23.31 billion.

"Our businesses remained resilient in the third quarter, despite subdued category performance trends in North America, the continued impacts related to certain recalls at Quaker Foods North America and business disruptions due to rising geopolitical tensions in certain international markets.

"Given our performance to date and our outlook for the fourth quarter, we now expect to deliver a low single-digit increase in organic revenue," said Laguarta.