PepsiCo snacks business up in India in Q2; beverages face challenges

New Delhi: Global food & beverages major PepsiCo on Thursday said international sales of its convenient foods business (snacks) logged a 4 per cent organic revenue growth in the second quarter of 2025, helped by a "good performance" in markets including India.

However, its International Beverages Franchise (IBF) segment, which focuses on the bottling and distribution of PepsiCo's beverage brands outside of North America, had "a decline in India" in the second quarter.

"Pepsi has gained share in many markets year-to-date including large markets such as China, India, Mexico, Brazil and the UK," the company said in its management remarks for the second quarter.

Over its snack business, PepsiCo said: "Our international convenient foods business delivered 4 per cent organic revenue growth in the second quarter – which accelerated versus the previous quarter. The growth was driven by good performance in markets including Mexico, Brazil, Colombia, India, Egypt, Türkiye, Saudi Arabia and Thailand."

In its Asia Pacific foods division, which includes its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India, net revenue increased 0.5 per cent, reflecting organic volume growth.

Its "unit volume grew 5 per cent, primarily reflecting growth in India, Thailand, Australia and China", the company said.

PepsiCo's unit volume of IB franchise grew by 1 per cent in the second quarter.

This is "primarily reflecting growth in the Middle East, China and Pakistan, partially offset by a decline in India", said Pepsico in its earnings statement.

IBF includes PepsiCo's international franchise beverage businesses, as well as its SodaStream business.

In India, several beverage companies reported an impact in their business in the June quarter, due to unseasonal rains along with short summer. June quarter is the peak season for sales of beverage products.

However, in the first half of 2025, PepsiCo's "unit volume grew 2 per cent, primarily reflecting growth in the Middle East, China, Pakistan, India and Mexico".

PepsiCo's net revenue in the second quarter was up 1 per cent to USD 22.72 billion.

Over the 2025 Outlook and Guidance, PepsiCo said: "We expect our business to remain resilient for the balance of the year, led by our international business and improved performance for our North America business as we undertake the actions noted above for the balance of this year and into next year."