PepsiCo CEO Ramon Laguarta stated on Thursday that India will continue to be a high-demand market for many years, emphasizing the company’s significant investments in infrastructure to seize this “massive opportunity.” Addressing analysts during a conference call, following the release of mixed quarterly results, Laguarta highlighted the company’s strategic focus on India.
PepsiCo India reported high single-digit organic revenue growth in the second quarter of 2024. Laguarta noted, “India is a big growth area for us and a key investment focus. The opportunity here is enormous over the next decade. We are investing heavily in infrastructure and brand development to ensure we can scale effectively to meet the long-term demand.”
The company’s management also reported robust performance in various developing and emerging markets. According to their release, “Developing and emerging markets such as Egypt and Poland each delivered double-digit organic revenue growth, with India and Brazil delivering high-single-digit growth, and Thailand and Pakistan each achieving mid-single-digit growth.”
In the AMESA (Africa, Middle East, and South Asia) region, PepsiCo’s convenient foods unit volume grew by 1 percent in the second quarter, driven primarily by double-digit growth in India and low-single-digit growth in South Africa. This growth was partially offset by a double-digit decline in West Asia and a low-single-digit decline in Pakistan. Over the 24 weeks ending June 15, convenient foods unit volume increased by 2 percent, reflecting similar growth patterns.
PepsiCo’s beverage unit volume also grew by 2 percent in the second quarter, with double-digit growth in India counterbalanced by a high-single-digit decline in Pakistan, a low-single-digit decline in West Asia, and a mid-single-digit decline in Nigeria. For the 24 weeks ending June 15, beverage unit volume showed the same 2 percent growth, primarily due to double-digit growth in India, offset by declines in Pakistan and Nigeria.
Year-to-date, PepsiCo reported holding or gaining market share in savory snacks in China, India, Brazil, Australia, and Pakistan. For beverages, the company maintained or increased market share in Australia, South Korea, China, Thailand, Pakistan, Egypt, Vietnam, Saudi Arabia, the UK, and Brazil.
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