Packaged foods and beverages company PepsiCo said its India business unit reported a low-single-digit decline in snacking volumes in 2023, while beverage volumes grew in double digits. Overall, the India unit delivered mid-single-digit organic revenue growth during the year, the company said.
“For the full year, developing and emerging markets such as Mexico, Brazil, Egypt, Turkey, Poland and Pakistan each delivered double-digit organic revenue growth while Saudi Arabia delivered high-single-digit growth and China and India each delivered mid-single-digit growth. Our organic revenue growth in 2023 led to notable marketplace results in many of our key markets,” PepsiCo said in its full-year earnings on Friday.
For the full year, the company gained market share in savory snacks across markets of China, Brazil, India, the Netherlands, Pakistan, Belgium and Puerto Rico.
Commenting on its business in the AMESA (Africa, Middle East and South Asia) region, the company said it reported a net revenue decline of 5%.
“Convenient foods unit volume declined 3.5%, 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. Beverage unit volume grew 2%, primarily reflecting double-digit growth in India,” the company said.
For the full year, the maker of Lay’s, Doritos and Cheetos snacks reported a 9.5% jump in organic revenue growth.
The company’s global convenient foods business delivered 10% organic revenue growth while the global beverage business reported an 8% jump in organic revenue growth in 2023.
Meanwhile, commenting on the outlook for 2024, the company said it expects its global beverage and convenient food categories to remain resilient, but category growth rates will normalize and moderate versus the last few years.
“Consumers are likely to remain watchful with their budgets and choiceful with their purchases. Therefore, we will elevate our focus on offering more convenience and value with greater precision and agility through our consumer-centric brand, flavor and package combinations and go-to-market distribution capabilities. Geographically, we expect international organic revenue growth to exceed North America organic revenue growth. However, geo-political tensions and macroeconomic volatility are expected to remain elevated in certain parts of the world,” it said on its outlook for the current year.
The company expects inflationary pressures to moderate versus the prior year, but certain agricultural commodity costs may remain elevated, it said.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
