Global food and beverages major PepsiCo on Thursday said its Indian unit delivered a “double-digit organic revenue growth” in 2022.
The company has gained market share in beverage and savory snack in markets, including India, PepsiCo said in its earning statement.
PepsiCo’s net revenue in Africa, Middle East, South Asia (AMESA) division under which India comes, was up 5.9 per cent to USD 6.43 billion as against USD 6.07 billion, primarily reflecting effective net pricing and organic volume growth.
The AMESA division “delivered more than 20 per cent organic revenue growth for the full year” with Saudi Arabia, India, Egypt, South Africa, and Pakistan “all delivering double-digit organic revenue growth,” Pepsico said.
In the division, PepsiCo’s convenient foods unit volume grew 2 per cent, primarily reflecting double-digit growth in the Middle East and Pakistan and high-single-digit growth in India.
PepsiCo’s beverage unit volume grew 14 per cent in AMESA, mainly reflecting double-digit growth in India.
However, its “operating profit decreased 22 per cent, primarily reflecting a 19 percentage point impact of impairment and other charges”.
Besides, it was also “negatively impacted by a 74 percentage point impact of higher commodity costs, primarily packaging materials, grains and cooking oil, certain operating cost increases and higher advertising and marketing expenses,” the statement said.
For the quarter ended December 31, 2022, AMESA division’s net revenue was up 4.35 per cent to USD 2.01 billion as against USD 1.92 billion of the corresponding quarter.
PepsiCo’s Q4 operating profit in AMESA decreased 148 per cent on account of impairment and “impact of higher commodity costs”.
For 2022, PepsiCo’s net revenue was at USD 86.39 billion, up 8.7 per cent.
“For the full year, we gained savory snack share in Brazil, China, the U.K., India, Pakistan, Saudi Arabia, Spain, Turkey, Netherlands, Australia, and Chile, and gained beverage share in Mexico, Brazil, Australia, China, India, Egypt, Pakistan, Saudi Arabia, Vietnam and Nigeria,” PepsiCo said.
The company’s Chairman and CEO Ramon Laguarta said it was pleased with the results for the fourth quarter and the full year. “Our results demonstrate that the investments we have made in our people, brands, portfolio, value chain, and go-to-market systems are working”.
The company expects a “6 per cent increase in organic revenue” for 2023.