PepsiCo Reports Strong Double-Digit Organic Revenue Growth in Indian Market for Q3 2024

PepsiCo, a global leader in food and beverages, has reported significant growth in India for the third quarter of 2024. The company achieved double-digit organic revenue growth in the Indian market. Ramon Laguarta, PepsiCo's Chairman and CEO, highlighted India's importance during an investor call, stating: "There are pockets of strength in International, Southeast Asia and India markets that are growing nicely."

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Strong Performance in Emerging Markets

In the third quarter, emerging markets like India, Egypt, Turkey, Poland, and Vietnam showed robust performance. Each of these markets delivered double-digit organic revenue growth. PepsiCo's earnings statement confirmed this trend. However, in the Africa, Middle East, and South Asia (AMESA) division, which includes India, net revenue fell by 4% to USD 1.55 billion. This decline was mainly due to unfavourable foreign exchange rates and a drop in organic volume.

Impact on AMESA Division

The AMESA division saw a 2% decrease in overall beverage unit volume. This was largely due to a mid-single-digit decline in the Middle East and a double-digit drop in Nigeria. Despite these challenges, high-single-digit growth in India helped offset some of the losses. Similarly, the Convenient foods unit volume in AMESA declined by 3%, with decreases noted in the Middle East and Pakistan. Yet again, slight growth in South Africa and high-single-digit growth in India provided some relief.

Global Revenue Trends

PepsiCo's global net revenue for the third quarter decreased by 0.6% to USD 23.31 billion. The company faced challenges such as subdued category performance trends in North America and disruptions from geopolitical tensions internationally. Additionally, certain recalls at Quaker Foods North America affected business operations. Despite these issues, PepsiCo's businesses remained resilient.

Ramon Laguarta expressed optimism about future prospects: "Given our performance to date and our outlook for the fourth quarter, we now expect to deliver a low single-digit increase in organic revenue." This outlook reflects PepsiCo's confidence in overcoming current challenges and achieving steady growth moving forward.