PepsiCo’s international beverages business grows 11% in Q1 helped by markets including India

Global food & beverages major PepsiCo’s international business reported 11 per cent revenue growth in the quarter ended March 22, 2025, helped by markets including India. Moreover, India also helped PepsiCo grow its international convenient foods business by 2 per cent in the quarter, the company said in a statement.

“Our international convenient foods business delivered 2 per cent organic revenue growth. The growth was driven by Brazil, India, Egypt and Turkey,” said PepsiCo in the Management Remarks.

Similarly, growth in its international beverages business “was driven by performance in China, India, Egypt, Turkey, Mexico, Brazil, the UK and Australia,” the company said.

PepsiCo’s international business remained resilient and delivered organic revenue growth of 5 per cent in Q12025.

“The international business continues to be the largest growth engine for the company and we continue to invest in that. We have started the year at a good pace. We see international business continuing those trends during the year,” said Chairman and CEO Ramon Laguarta in earnings call.

Live Events

There are markets which have seen a bit of slowdown, mainly in China and Mexico. “We have seen Europe navigating quite well. The first sign in Europe is positive. We have seen India in a good place… Overall portfolio of market, which we have the highest percentage of business, are in a positive place,” he said. PepsiCo’s net revenue in the first quarter was down 1.81 per cent to USD 17.9 billion. Its operating profit was also down 4.9 per cent to USD 2.58 billion in the quarter which ended on March 22, 2025.

According to PepsiCo, substantial foreign exchange headwinds impacted its net revenue.

PepsiCo has realigned some of its reportable segments. Under the new arrangement, it has created a separate reportable segment — International Beverages Franchise business — for its global business.

As a result, its international convenient food businesses have been reorganized into three reportable segments — Latin America Foods; Europe, Middle East and Africa (EMEA); and Asia Pacific Foods.

It has put India market under Asia Pacific Foods, which includes convenient food businesses in Asia Pacific, in markets including China, Australia and New Zealand.

Over outlook for 2025, PepsiCo said:” While our global business trends have remained resilient to date, we do expect the macroeconomic and consumer environment to feature elevated levels of volatility and uncertainty for the balance of 2025.”

For fiscal 2025, PepsiCo “continue to expect low-single-digit organic revenue growth and a core annual effective tax rate of 20 per cent”.

“As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs. At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook,” said Laguarta.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}