December 7, 2022

PepsiCo reports double-digit growth for the quarter ended September 3 in India

Global food and beverage leader PepsiCo on Wednesday reported double-digit volume growth in India for the quarter ended September 3 as it faced challenges including rising product costs basic and operational.

The company reported mid-single-digit ready-meal unit volume growth in the Indian market, according to PepsiCo’s statement.

Net revenue in the third quarter ended September 3, 2022 of the Africa, Middle East, South Asia (AMESA) division, which includes India, increased by 3.66% to reach $ 1.72 billion against $1.66 billion.

This “primarily reflects effective net pricing, partially offset by a net decline in organic volume. Unfavorable foreign exchange reduced net revenue growth by 14 percentage points,” the company said in its income statement. .

Its “operating profit declined 14%, primarily reflecting a 62 percentage point impact from higher commodity costs, primarily grain and packaging materials, some increases in operating costs and higher advertising and marketing expenses,” PepsiCo said.

These impacts were partially offset by effective net pricing and productivity savings, he said.

In AMESA, Pepsico’s Convenience Foods unit volume decreased 2%, primarily reflecting a high single-digit decline in South Africa, partially offset by double-digit growth in the Middle East and Pakistan and growth mid single digit in South Africa. India”.

Its beverage unit volume grew 11%, reflecting double-digit growth in India, Pepsico said.

For 36 weeks (year-to-date), PepsiCo’s convenience food unit volume at AMESA grew 5%, reflecting double-digit growth in the Middle East, India and Pakistan.

Beverage unit volume increased 17%, primarily reflecting double-digit growth in India over the same period.

Overall, PepsiCo’s third-quarter worldwide net revenue growth rose 8.82% to $21.97 billion, the company said.

The company also improved its forecast for 2022 and expects growth of 12%.

Commenting on the results, Chairman and CEO Ramon Laguarta said, “We are very pleased with our results for the third quarter as our global business momentum remains strong. Based on our year-to-date performance, we now expect our full-year organic revenue to grow 12% (previously 10%) and constant currency earnings per share to base will increase by 10% (previously 8%).

“We are encouraged by the progress we are making on our strategic agenda and remain committed to investing in our people, our brands, our supply chain and our go-to-market systems and winning in the market,” he said. -he declares.