“Beverage sales overseas improved, with double-digit organic revenue increases in emerging markets like India, Mexico and Brazil. Snacks grew double digits in India,” the company said in a statement.
The growth, however, comes on the back of a low base effect of the March-May 2020 quarter, which had seen a significant decline in beverages sales amid the first wave of the Covid-19 pandemic.
The maker of Pepsi cola, Tropicana juices and Lays snacks did not specify exact growth numbers for India.
It raised its full-year earnings forecast, betting on increased demand for its products and forecasting that pandemic-weary people will flock to restaurants and theatres after being stuck at home for more than a year.
PepsiCo said it expects fiscal 2021 core earnings per share to increase 11%, compared with prior forecast of a high-single-digit increase, and forecasted full-year organic revenue to rise 6%.
“Many of our international markets delivered strong results including double-digit organic revenue growth,” the company said in a management commentary.
It called out India among others markets such as Mexico, Russia, Brazil, Turkey and Egypt as growth markets.
“Each of our international divisions delivered good organic revenue growth in the second quarter despite uneven recoveries across many of our international markets. As mobility trends improved, our international beverage business accelerated and performed well despite an uneven recovery across geographies as vaccination efforts and mobility trends vary,” PepsiCo chairman Ramon Laguarta and vice chairman Hugh Johnston said in a joint statement.
In India, the April-June quarter contributes three-fourths of overall sales of the Rs 20,000 crore organised packaged beverages category. But the second wave of the pandemic impacted sales during that period this year. While a majority of out-of-home channels for beverages such as cinema theatres, restaurants, railway stations and holiday destinations were shut to curb the spread of the pandemic, lockdowns were localised, unlike last year when the lockdown was called across the country. Out-of-home channels typically account for over half of annual soft drinks sales.
“The recovery from the Covid-19 pandemic contributed to a current-year increase in consumer demand, which had a positive impact on net revenue, unit volume and operating profit performance,” PepsiCo said.
PepsiCo India snacks & beverages grew in double digits in May quarter - Economic Times
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