Multinational food company PepsiCo has posted a double-digit revenue growth in the Indian market during the third quarter (Q3) of 2024. The company in a NASDAQ filing said that the convenient foods and beverages unit volumes recorded “high single-digit” growth in India in Q3 2024.
The manufacturer of Lay’s chips added that it has held or gained a share in the Indian market in both savoury snacks and beverages categories to date.
Overall, Pepsico’s international business delivered 4 percent organic revenue growth, compared to 12 percent organic revenue growth in the third quarter of 2023.
In the US market, the FMCG brand delivered 1 percent organic revenue growth, in contrast to 6 percent organic revenue growth in Q3 2023.
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Despite the subdued performance in Q3 2024, Chief Executive Officer (CEO) Ramon Laguarta said, “We will continue to elevate and accelerate our productivity initiatives across the organization to support disciplined commercial and advertising and marketing investments”.
The CEO added that the company would take action to stimulate growth through targeted investments in brands, package, and channel offerings where better value, amplified advertising, and more.
To mitigate the risk of inflationary pressure and support commercial investment, PepsiCo said it would focus on automation at its plants, warehouses, and distribution centres; advance digitization; maximize labour efficiencies, etc.
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Further, the company said that it would be investing to expand the offerings within its ‘Positive Choices’ portfolio. This includes brands such as SunChips, Stacy’s and PopCorners, Baked, and Simply varieties. “We will continue to build and grow our presence within the multicultural and value-conscious segments such as Sabritas and Chester’s,” Pepsico added. Sabritas and Chester’s delivered double-digit and mid-single-digit net revenue growth, respectively, and in the aggregate, gained share in Q3, it noted.
PepsiCo is expected to deliver a low-single-digit increase in organic revenue (previously approximately 4 percent organic revenue growth) in 2024. It has also projected that international organic revenue growth would surpass North America’s organic revenue growth in the current calendar year.