Global food and beverages major PepsiCo reported good double-digit volume growth in India for the quarter that ended September 30, amid higher commodity prices and rising operating costs.
The company’s revenue during the quarter was up 3.66 percent year-on-year to $1.72 billion from the Africa, Middle East (West Asia), and South Asia (AMESA) region which includes India. This is “primarily reflecting effective net pricing, partially offset by a net decline in organic volume. Unfavourable foreign exchange reduced net revenue growth by 14 percentage points, the company said in its earnings statement.
PepsiCo reported a mid-single-digit growth in the convenience foods unit volume in the Indian market, said the statement. The company’s convenience foods unit volume in AMESA grew 5 percent reflecting double-digit growth in the Middle East, India, and Pakistan on a year-to-date basis.
The operating profit declined 14 percent, reflecting a 62-percentage points impact of higher commodity costs, primarily grains and packaging materials, certain operating cost increases, and higher advertising and marketing expenses, the company said.
In the AMESA zone, Pepsico convenient foods unit volume declined 2 percent, primarily reflecting a high-single-digit decline in South Africa, partially offset by double-digit growth in the Middle East and Pakistan and mid-single-digit growth in India.
Its beverage unit volume grew 11 percent, similar to the double-digit growth in India, the company said. The beverage unit volume grew 17 percent, primarily mirroring double-digit growth in India during the same period.
Overall, PepsiCo’s global net revenue growth for the third quarter was up 8.82 percent to $21.97 billion. The company has also improved its forward guidance for 2022 and expects a growth of 12 percent.