PepsiCo, a global beverage and food company, said on Friday that it expects “mid-single-digit” growth in the Indian market in 2023. According to the most recent financial report, PepsiCo’s global net sales will be USD 91.47 billion in 2023, representing a 5.9 per cent increase.
PepsiCo stated that developing and emerging markets, including “China and India, each delivered mid-single-digit growth” for the whole year.
However, PepsiCo’s net revenue in Africa, the Middle East, and South Asia (AMESA), which includes India, fell 4.64 per cent to USD 6.14 billion.
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.
In the region, PepsiCo’s beverage unit volumes grew 2 per cent, “primarily reflecting double-digit growth in India and low-single-digit growth in the Middle East,” it added.
However, its convenience food unit volume fell 3.5 per cent, mostly due to a high-single-digit decrease in South Africa, which was somewhat offset by high-single-digit growth in the Middle East and low-single-digit increase in Pakistan.
“Additionally, India experienced a low-single-digit decline,” it said.
However, its operational profit in AMESA increased by 21 per cent, it noted. In the December quarter, PepsiCo’s net revenue in AMESA fell 3.72 per cent to USD 1.93 billion.
PepsiCo stated that it expects “at least 4 percent 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.
