PepsiCo, on Thursday, said Indian business clocked high-single-digit organic revenue growth in Q2 2023. The company, which released its second-quarter earnings, noted that it had saw market share gains in both snacks and beverage segments in India.
“Our developing and emerging markets remained resilient and delivered double-digit organic revenue growth. Mexico, Turkey, Pakistan, Egypt, Poland, and Vietnam delivered double-digit organic revenue growth; India and China delivered high-single-digit organic revenue growth,” the company’s management stated in its remarks for the second quarter ended June 17.
But in terms of volumes, India experienced a “mid-single-digit decline” in the snacks segment in the second quarter.
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Commenting on the performance of Africa, Middle East and South Asia (AMESA) region, the company said, “Convenient foods unit volume declined 6 per cent, primarily reflecting a double-digit decline in South Africa, partially offset by double-digit growth in the Middle East and mid-single-digit growth in Pakistan. Additionally, India experienced a mid-single-digit decline.”
However, in the beverage segment, the company’s India business garnered low-single digit volume growth during this period.
The company also saw share gains in India. “Year-to-date, we gained savoury snack share in many of our international markets, including China, India, Saudi Arabia, Turkey, the Netherlands, South Africa, Belgium, and Pakistan,” it noted.
Even in the beverage segment, the company said it gained market share in India. This comes at a time when the company’s key bottler in the country, Varun Beverages, has been ramping up manufacturing capacities and growing its distribution footprint aggressively.
Beverage makers faced challenging times this summer season in the country. Unseasonal rains in many parts of the country and moderate temperatures led to sluggishness in the out-of-home demand for the cold beverage segment, as per analysts. The summer season is a key contributor to annual sales of carbonated soft drinks and juices in India.