India represents a "high-demand market" for PepsiCo, a leading global food and beverage company, according to Chairman and CEO Ramon Laguarta, who spoke on Thursday about the company's ongoing investments in the country to enhance its infrastructure.
During an investor call, Laguarta emphasized the company’s focus on its brands to seize growth opportunities. "We’re observing significant growth across various segments of the AMESA region, with India being a key area of expansion and investment," he stated.
He further noted, "The potential in India is immense when viewed from a decade-long perspective, and we are actively building the necessary infrastructure and investing in our brands to ensure we can scale and meet the anticipated demand in this vibrant market for many years to come."
On the same day, PepsiCo reported strong double-digit growth in beverage volume in India for the second quarter of 2024, contributing to a 2% overall increase in the Africa, Middle East, and South Asia (AMESA) region.
Additionally, the company's convenient foods segment also saw double-digit volume growth in India from April to June.
"Beverage unit volume in the AMESA region grew by 2%, primarily driven by double-digit growth in India, though this was somewhat counterbalanced by a high-single-digit decline in Pakistan, a low-single-digit drop in the Middle East, and a mid-single-digit decline in Nigeria," the company detailed in a regulatory filing.
For the same quarter, the convenient foods segment experienced a 1% increase in AMESA, mainly due to double-digit growth in India and low-single-digit growth in South Africa, which were offset by significant declines in the Middle East and Pakistan.
"In the second quarter, developing and emerging markets like Egypt and Poland recorded double-digit organic revenue growth, while India and Brazil achieved high-single-digit growth. Thailand and Pakistan showed mid-single-digit growth, whereas Mexico and South Africa experienced low-single-digit growth," the earnings statement revealed.
PepsiCo also highlighted that developed international markets such as Australia and the UK yielded low-single-digit organic revenue growth.
Year-to-date, the company reported either holding or gaining market share in savory snacks across China, India, Brazil, Australia, and Pakistan, while for beverages, share growth occurred in Australia, South Korea, China, Thailand, Pakistan, Egypt, Vietnam, Saudi Arabia, the UK, and Brazil.
Overall, PepsiCo achieved a slight increase in net sales, reaching $22.5 billion, with a net income of $3.08 billion attributed to the company.
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