PepsiCo, a global leader in the food and beverage industry, announced on Thursday that its Indian division achieved double-digit organic revenue growth in 2022. According to PepsiCo, the business has increased its share of the beverage and savoury snack markets, including India.
Effective net pricing and organic volume growth accounted for the majority of PepsiCo’s net revenue increase to $6.43 billion from $6.07 billion in the Africa, Middle East, and South Asia (AMESA) division, which includes India.
Pepsico stated that Saudi Arabia, India, Egypt, South Africa, and Pakistan were all delivering double-digit organic revenue growth. PepsiCo’s convenient foods unit volume increased by 2% in the division, primarily due to double-digit growth in Pakistan and the Middle East and high-single-digit growth in India. In AMESA, PepsiCo’s beverage unit volume increased by 14%, primarily due to double-digit growth in India.
However, primarily reflecting a 19%-point impact of impairment and other charges, and its operating profit decreased by 22%. In addition, the statement said that it was negatively impacted by a 74%-point impact of higher commodity costs, primarily packaging materials, grains, and cooking oil, as well as certain operating cost increases and higher advertising and marketing expenses.
The AMESA division’s net revenue increased by 4.35% to USD 2.01 billion for the quarter that ended on December 31, 2022, compared to USD 1.92 billion for the corresponding quarter. Due to impairment and the impact of higher commodity costs, PepsiCo’s Q4 operating profit in AMESA decreased by 148%.
PepsiCo said that for the full year, the company gained share in savory snacks in Brazil, China, the United Kingdom, India, Pakistan, Saudi Arabia, Spain, Turkey, the Netherlands, Australia, Chile, and Mexico, Brazil, Australia, China, India, Egypt, Pakistan, Saudi Arabia, Vietnam, and Nigeria.
Ramon Laguarta, the chairman and chief executive officer of the business, said that the results for the fourth quarter and the entire year were satisfactory. Our outcomes show that our investments in people, brands, portfolio, value chain, and go-to-market systems are paying off. For the year 2023, the business anticipates a 6% increase in organic revenue.
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