PepsiCo global revenue rises 6% in 2023, mid-single-digit growth in India

Global beverage and food major PepsiCo reported a "mid-single-digit" growth in the Indian market in 2023. Globally, PepsiCo saw a net revenue of USD 91.47 billion in 2023, registering a growth of 5.9 per cent, according to the latest earnings report.

For the full year, developing and emerging markets such as "China and India each delivered mid-single-digit growth", PepsiCo said.

However, PepsiCo's net revenue in Africa, the Middle East, South Asia (AMESA) division, including India, was at USD 6.14 billion, a decline of 4.64 per cent.

This "primarily reflected a 21-percentage-point impact of unfavourable foreign exchange, driven primarily by the weakening of the Egyptian pound, and a net organic volume decline, partially offset by effective net pricing," it said.

In the region, PepsiCo's beverage unit volumes grew 2 per cent, "primarily reflecting double-digit growth in India and low-single-digit growth in the Middle East," it added.

However, its convenient foods unit volume declined 3.5 per cent, primarily reflecting a high-single-digit decline in South Africa, partially offset by high-single-digit growth in the Middle East and low-single-digit growth in Pakistan.

"Additionally, India experienced a low-single-digit decline," it said.

However, its operating profit in AMESA grew 21 per cent, it added.

For the December quarter, PepsiCo's net revenue in AMESA declined 3.72 per cent to USD 1.93 billion.

PepsiCo said it is expecting "at least 4 per cent organic revenue growth" in 2024.

"We are confident that our businesses will perform well in 2024 in the context of changing marketplace conditions. Category growth rates are normalising as consumer behaviours largely revert to pre-pandemic norms and net revenue realisation moderates as inflationary pressures are expected to abate," said Chairman and CEO Ramon Laguarta.