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PepsiCo reports double-digit growth in Q2

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Global food and beverage major PepsiCo reported double-digit growth in India in the second quarter (March-April-May). The brand reported net revenue of USD 1.6 billion in the quarter, from Middle East, South Asia (AMESA) division, which also includes India.  The revenue was up by 62.97 per cent as against USD 0.98 billion in the year-ago period. Overall, PepsiCo’s global net revenue growth was up 20.52 per cent to USD 19.21 billion, the New York-based company said in a statement.

In the AMESA division, PepsiCo’s snacks unit volume reported “double-digit growth in India and Pakistan and mid-single-digit growth in the Middle East, partially offset by a high-single-digit decline in South Africa,” PepsiCo said in a statement for Q2.

“Beverage unit volume grew 38 per cent, primarily reflecting a 4-percentage-point impact of our Pioneer Foods acquisition and double-digit growth in India. The Middle East and Pakistan each experienced double-digit growth and Nigeria experienced mid-single-digit growth,” the statement reads further.

Much credit of the turnaround goes to the demand and trends which lived up to the situation in the pandemic times. “The recovery from the COVID pandemic contributed to a current-year increase in consumer demand, which had a positive impact on net revenue, unit volume and operating profit performance,” it said.

“As mobility trends improved, our international beverage business accelerated and delivered 22 per cent organic revenue growth, while our international snack business delivered 11 per cent organic revenue growth,” the company said.

In the first half (H1), AMESA region reported a net revenue of USD 2.48 billion as against USD 1.61 billion.

“Beverage unit volume grew 26 per cent, primarily reflecting a 4-percentage-point impact of our Pioneer Foods acquisition and double-digit growth in India and Pakistan,” it said.

Over the outlook, PepsiCo said it expects its international markets to perform well despite an uneven recovery across geographies as vaccination efforts and mobility trends vary.