(Image source from: seekingalpha.com)
PepsiCo Inc witnessed a double-digit decline in its beverage sales in India in the 12-week period which ended June 13 during the coronavirus pandemic. Not just Beverages, the PepsiCo snacks volume also witnessed double-digit decline in India during the same period.
The whole world has been dealing with a pandemic and for most of the world this is the first time to have witness a pandemic or an outbreak on such a massive level. The last time something like this happened was in early 1900‘s with the Spanish Flu pandemic. Now with the coronavirus pandemic,Global beverages and snacks major PepsiCo Inc witnessed a double-digit decline in its beverage sales in India in the 12-week period ended June 13 amid the coronavirus pandemic. This period was when the whole country was in an almost lockdown. This report was witnessed in the company's earnings statement.
The company also said that its snacks volume also witnessed double-digit decline in India during the same period. In countries like Africa, Middle East and South Asia the company saw a decline of double digit to almost 25% decline in beverage sales in both India and Pakistan. Nigeria and Middle East saw a single digit decline.
"The COVID-19 pandemic contributed to a decrease in consumer demand, which had a negative impact on volume performance," PepsiCo said.
PepsiCo snack which saw growth in other countries also saw a double digit decline in India. In Middle East and Pakistan, PepsiCo snacks saw a mid-single digit growth and in South Africa it saw a low single digit growth. But in India it saw an offset of double digit decline.
In the company’s earnings statement we can see that in the regions of like Africa, Middle East and South Asia, PepsiCo saw a decrease of 1% in sales and revenue.
In the 12-week period ended June 13, PepsiCo posted net revenue of USD 15.945 billion, while net income was at USD 1.658 billion. The net revenue saw a 6% decline during the Covid-19 pandemic.
PepsiCo saw a downfall in the months of March and April as they were particularly challenging because of the overall global economic growth was deteriorating. However, the company saw an improvement in business performance and channel dynamics in May and June as population mobility increased after many economies gradually began to reopen both in the developed and developing markets.
PepsiCo has decided to not provide financial outlook for fiscal year 2020 because of the volatility and uncertainty of the market due to the pandemic and its implications which are going to be there for long.
By Deepika Agarwal