In its global earnings statement, PepsiCo announced a “high single-digit growth” in beverage unit volume and “double-digit growth” in its convenient food business in the Indian market during the first quarter of 2024.
The net revenue in the Africa, Middle East, and South Asia (AMESA) division, which includes the Indian market, increased by 2% to USD 1.04 billion. This growth was attributed to organic volume growth, effective net pricing, and partially offset by the impact of unfavorable foreign exchange rates.
In AMESA, PepsiCo’s beverage unit volume grew by 2%, driven by mid-single-digit growth in the Middle East and high single-digit growth in India. Additionally, the convenient food unit volume saw a growth of 4.5%, primarily due to high-single-digit growth in South Africa and double-digit growth in India.
However, operating profit in AMESA declined by 10% in the first quarter due to certain operating cost increases, including higher commodity costs such as packaging materials, sweeteners, and potatoes. This decline also includes adjustments related to the sale of a non-strategic brand last year.
PepsiCo also noted gains in savory snack share in China and India year-to-date.
Overall, PepsiCo’s net revenue in the first quarter increased by 2.26% to USD 18.25 billion, driven by notable volume improvements in the international business, strong organic revenue growth, and core operating profit growth.
Chairman and CEO Ramon Laguarta highlighted the strong performance of the international business during the first quarter and expressed confidence in the company’s outlook. PepsiCo expects “at least 4% increase in organic revenue” for 2024, consistent with earlier guidance.
