Prime Highlights-
- PepsiCo recorded growth in its food and beverage business in the first quarter, supported by strong demand from India.
- The company said its convenience foods and international business segments both contributed to overall revenue growth.
Key Facts-
- Convenience foods grew 6% in organic revenue, while international beverage sales rose 4.5%.
- PepsiCo reported $19.44 billion in net revenue and $3.21 billion in operating profit for the quarter.
Background-
PepsiCo recorded growth in its food and beverage business in the first quarter, driven by strong demand from India and steady performance across international markets. The company said its convenience foods segment and beverage business both contributed to overall revenue growth during the period.
The convenience foods business recorded 6% organic revenue growth, while beverages in international markets rose by 4.5%. PepsiCo said multiple markets, including India, Mexico, Colombia, Argentina, Egypt, Turkiye, Saudi Arabia, South Africa, China and Pakistan, supported growth in the food segment.
The company said its international business delivered 5.5% organic revenue growth and continued to play an important role in its overall performance. It added that the segment generated $38 billion in net revenue in the previous year and contributed more than 40% of total company revenue.
PepsiCo said it sees strong long-term growth potential in its international operations and plans to expand its scale further by adapting products to local markets. The company highlighted that ongoing brand upgrades, innovation efforts, and affordability initiatives helped improve performance during the quarter.
For the quarter, PepsiCo reported net revenue of $19.44 billion, with operating profit standing at $3.21 billion. The company said improved volume growth in convenience foods and stronger execution across its commercial strategy supported results.
Chairman and CEO Ramon Laguarta said the company saw an acceleration in revenue growth and better performance in key categories. He added that the company’s commercial strategy, including brand updates and innovation, is delivering results.
Looking ahead, PepsiCo expects organic revenue to grow between 2% and 4%, while saying that global economic conditions remain uncertain due to geopolitical challenges.