PepsiCo, a multinational food and beverage company, reported on Tuesday that its Indian branch achieved double-digit organic sales growth in the first quarter of 2023, which ended in March. While beverage unit volumes significantly rose during the quarter, snack volume dipped across the nation.
India has long been one of PepsiCo’s key markets in the AMESA (Africa, Middle East, and South Africa), the company said driving development along with Egypt, Saudi Arabia, and Pakistan. Despite a turbulent operating environment, PepsiCo’s average prices grew by 16% globally while organic volume decreased by 2%. According to the corporation, emerging markets like India looked to have defied this tendency as sales momentum remained strong.
The March quarter saw an overall 10.2% increase in PepsiCo’s net revenue to $17.85 billion, driven primarily by price-led growth.
The management of PepsiCo stated in prepared remarks on Tuesday that each of its overseas segments had experienced solid organic revenue growth in Q1. The AMESA area in particular spearheaded growth. Despite being outside of AMESA, several of PepsiCo’s other growing and emerging markets, including Mexico, Brazil, and Vietnam, also produced impressive outcomes.
The company said that they are pleased with the performance of its overseas business, which generated almost $34 billion, or about 40%, of its overall net revenue in 2022.
PepsiCo increased its annual sales and profit predictions for the current calendar year in response to the success of its worldwide business, banking on persistent demand for its drinks and snacks as well as price increases adopted to offset rising costs, according to industry analysts.
The company further mentioned that market improvements in product categories have increased its market share in many overseas markets. The company claims it experienced increased market share for beverages in Mexico, Brazil, Egypt, Turkey, Nigeria, China, Saudi Arabia, Turkey, the Netherlands, South Africa, Belgium, and Puerto Rico. Through its bottling partner Varun Beverages, PepsiCo has been promoting the availability of its products in India. Sector analysts reported that Varun Beverages had increased its distribution reach by roughly 10–15% ahead of the summer season this year, bringing it to close to 3.5 million outlets from 3 million outlets previously.
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