New Delhi: Global food and beverages major PepsiCo has reported 'strong double-digit organic revenue growth' in the third quarter of 2018 from India and other AMENA zone markets including China, Saudi Arabia and Egypt.
The Asia, Middle East and North Africa (AMENA) zone reported an increase of 17 per cent in profit and 7 per cent in volume growth in the food/snacks and 2 per cent in beverages, PepsiCo said in its third quarter report for 2018.
"And in AMENA, we had strong double-digit organic revenue growth in China, Saudi Arabia, India and Egypt, and high single-digit organic revenue growth in Australia. Excellent results from our AMENA team," PepsiCo Inc chairperson and outgoing CEO Indra K Nooyi said in her last post earning calls.
She further said: "This strong top-line performance translated into impressive bottom-line results, with core constant currency operating profit up 12 per cent in our international divisions as a group." Chennai-born Nooyi is stepping down Wednesday as CEO after 12 years at the helm of the global beverage giant.
She will continue as chairperson at the beverages major until early 2019 to ensure a smooth and seamless transition. Over the AMENA results, PepsiCo in a statement said it reflects "the effective net pricing, planned cost reductions across a number of expense categories and the volume growth". These impacts were partially offset by certain operating cost increases and higher advertising and marketing expenses," it added.
"Additionally, higher commodity costs reduced operating profit growth by 6 percentage points and the impact of refranchising our beverage businesses in Thailand in 2018 and Jordan in 2017 reduced operating profit growth by 4 percentage points," the statement said.
PepsiCo has reported 1.5 per cent growth in its global profit and 4.9 per cent growth in its organic revenue growth. While for its year-to-date (nine months), AMENA zone - which also includes India - witnessed 34 per cent increase in its operating profit.
This is "primarily reflecting the net revenue growth and planned cost reductions across a number of expense categories, as well as the net impact of refranchising our beverage businesses in Thailand in 2018 and Jordan in 2017, which contributed 15 percentage points to operating profit growth," said PepsiCo.
In the snacks segment, PepsiCo is also driving growth of Doritos, the brand owned by Frito-Lay, its wholly owned subsidiary. "We are driving growth in Doritos internationally, whether through expansion to new markets like China, where the brand just celebrated its first anniversary since launch, to innovation in existing markets like India, where we launched Doritos Heat Wave," Nooyi added.
