Beverage and snacks maker PepsiCo said its India business posted high-single-digit organic revenue growth in the second quarter of CY24. The company also witnessed strong growth in beverage and snacks sales volumes during this period. The company released its second quarter global earnings on Thursday.
On an investor call, Ramon Laguarta, Chairman and CEO, PepsiCo, said, “We continue to see a lot of growth in many parts of the AMESA (Africa, Middle East and South Asia) region, in particular India is a big growth space for us and it’s an investment area for sure. The opportunity is massive if you take a decade’s perspective and we are putting infrastructure on the ground and investing on the brands to make sure that we can build scale to capture.....what is going to be, I think, a high-demand market for many, many years.”
In its earnings statement, the snacks and beverage major said, “For the second quarter, developing and emerging markets such as Egypt and Poland each delivered double-digit organic revenue growth, India and Brazil delivered high-single-digit growth.” The company added that year-to-date, it “held or gained” savoury snack share in markets including China and India.
AMESA region
Talking about the performance of the AMESA region in Q2, the company stated, “Convenient foods unit volume grew 1 per cent, primarily reflecting double-digit growth in India and low-single-digit growth in South Africa, partially offset by a double-digit decline in the Middle East and a low-single-digit decline in Pakistan.”
Meanwhile, beverage unit volume grew 2 per cent in the AMESA region in Q2, which primarily reflected double-digit growth in India. This was partially offset by a high-single-digit decline in Pakistan, a low-single-digit decline in the Middle East and a mid-single-digit decline in Nigeria, the company added.
Beverage companies witnessed unprecedented demand during this year’s Summer season due to scorching temperatures seen across the country. The Summer household penetration of bottled soft drinks crossed the 40 per cent mark at the national level in the March-May period for the first time, according to estimates by market research and insights firm Kantar.