PepsiCo revenue falls 3% as COVID-19 hits beverage sales but boosts snacks business
According to the company’s earnings statement, PepsiCo Inc, global beverages and snacks company, witnessed a double-digit drop in its beverage sales in India in the 12 weeks ended June 13 amid the pandemic COVID-19. The company said its snacks volume also saw a double-digit decline in India during the pandemic period.
In South Asia, the Middle East, and Africa, the company said its “beverage quantity decreased 25%, indicating double-digit drop in India and Pakistan, a low-single-digit drop in Nigeria and a high-single-digit decline in the Middle East”.
“The pandemic COVID-19 resulted in a decrease in consumer demand that had a negative result on quantity performance,” PepsiCo added.
Snacks volume was increased by 117% and necessarily indicating a 124-percentage-point result of the Pioneer Foods purchase, mid-single-digit increase in the Middle East and Pakistan, and low-single-digit rise in South Africa, partly balanced by a double-digit drop in India”, it added.
The company said its net revenue in South Asia, the Middle East, and Africa “declined 1%. It was primarily indicating a net volume drop and a six-percentage-point influence of a prior-year allowing of a portion of our beverage business in India, somewhat offset by a 13-percentage point influence of the Pioneer Foods acquisition. Net revenue was also negatively changed by the pandemic COVID-19”.
PepsiCo’s revenue, and overall performance in past weeks
In the past 12 weeks ended June 13, PepsiCo earned net revenue of USD 15.945 billion, and net income was at USD 1.658 billion.
Also, explaining on the company’s overall performance, PepsiCo Inc Chairman and Chief Executive Ramon L Laguarta stated, “Despite being confronted with important challenges and complexities as an effect of the pandemic COVID-19, our businesses operated comparatively well throughout the quarter, with an important level of resiliency in our global snacks and foods business.”
He told, “The months of March and April were especially challenging as the overall global economic increase was engaging and limitations, conclusions and the resulting influence on consumer movement had a notable effect on our production.”
The enhancement faced by PepsiCo in May and June
However, the company noticed an enhancement in business performance, and channel dynamics in May and June as population movement raised after many economies slowly began to resume both in the developing and developed markets, he said.
Saying that the environment has continued active and much possibility remains about the duration and long-term implications of the pandemic virus, he said, “In conclusion, we are not offering a financial possibility for the fiscal year 2020 at this moment.”
PepsiCo said while its financial decisions in Canada (North America) and the United States are described on a 12-week basis, necessarily all of its international operations report on a monthly calendar basis for which the months of March, April and May are revealed in its results for the 12 weeks ended June 13, 2020.
PepsiCo had declared a deal to acquire with South Africa-based Pioneer Foods for about USD 1.7 billion in July 2019.