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PepsiCo India posted a net profit of ₹329 crore for FY19-20, registering a sharp increase over net profit of ₹36 crore recorded in FY18-19. It closed the fiscal year with revenue of ₹5,264 crore down 15.87 per cent compared to ₹6257 crore in FY18-19, according to the filings with the Registrar of Companies.
The sharp surge in net profit was due to one-time gains accrued due to factors such as sale of company-owned bottling operations in South and West geographies, land sale and recognition of deferred tax asset in FY19-20. However, the company pointed out that on a like-for-like basis “normalised PAT” for FY19-20 was up 58 per cent compared to the previous fiscal.
Also read: PepsiCo India to sell snacks through CSC’s Grameen e-Store
In an emailed statement, Ahmed ElSheikh, President, PepsiCo India, said the company’s transformation journey in the country is on track with the business delivering its third consecutive year of profit in FY19-20. “This growth has been on the back of strong performance by both foods and beverages along with continuous focus on prioritising profitable channels, diligently managing SKUs, further investing in digitisation and driving execution and productivity,” he said.
“With the Indian FMCG industry slowly showing signs of revival in Covid impacted world, we have adapted quickly and re-strategised our price-pack programmes, enhanced consumer engagement initiatives and doubled down attention on both B2C and B2B distribution models to meet consumer demand,” he added
Pandemic challenges
Despite the challenges posed by the pandemic, PepsiCo India said it is committed to doubling its snack business in the country by 2025. As part of the strategy, the company is setting up a green field snacks manufacturing facility in Assam and has also increased investments in the new greenfield snacks plant being set up in Uttar Pradesh.
In February 2019, Varun Beverages Ltd announced acquisition of PepsiCo’s bottling operations in South and West regions making it the company’s national bottling partner.
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