PepsiCo, said on Thursday that its Indian unit achieved “double-digit organic sales growth” in 2022.
PepsiCo noted in its earnings report that it had gained market share in beverage and savoury snack markets, including India.
PepsiCo’s net sales in the Africa, Middle East, and South Asia (AMESA) business, which includes India, increased 5.9 percent to USD 6.43 billion from USD 6.07 billion, owing mostly to effective net pricing and organic volume growth.
The AMESA segment produced more than 20 per cent organic sales growth for the whole year, with Saudi Arabia, India, Egypt, South Africa, and Pakistan all delivering double-digit organic revenue growth, according to Pepsico.
PepsiCo’s quick meals unit volume increased by 2 per cent, owing mostly to double-digit growth in the Middle East and Pakistan, as well as high-single-digit growth in India.
PepsiCo’s beverage unit volume increased 14 per cent in AMESA, owing mostly to double-digit growth in India.
However, its operational profit declined 22 per cent, principally reflecting a 19 percentage point effect of impairment and other charges
Furthermore, it was “negatively impacted by a 74 percentage point effect of higher commodity costs, notably packaging materials, cereals, and cooking oil, certain operating cost increases, and higher advertising and marketing expenses,” according to the statement.
The AMESA division’s net revenue increased 4.35 per cent to USD 2.01 billion for the quarter ended 31 December, 2022, compared to USD 1.92 billion in the previous quarter.
PepsiCo’s Q4 operating profit in AMESA declined 148 per cent on account of impairment and “effect of higher material costs”.
PepsiCo’s net sales for 2022 was USD 86.39 billion, an 8.7 per cent increase.
“For the full year, we gained savoury snack share in Brazil, China, the U.K., India, Pakistan, Saudi Arabia, Spain, Turkey, Netherlands, Australia, and Chile, and gained beverage share in Mexico, Brazil, Australia, China, India, Egypt, Pakistan, Saudi Arabia, Vietnam and Nigeria,” PepsiCo said.
Ramon Laguarta, the company’s Chairman and CEO, expressed satisfaction with the fourth-quarter and full-year performance. “Our results demonstrate that the investments we have made in our people, brands, portfolio, value chain, and go-to-market systems are working”.
The firm anticipates a 6 per cent growth in organic revenue in 2023.