PepsiCo India FY23 net profit hits ₹255 cr

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₹255 crore in FY23 against a net profit of ₹27.8 crore a year earlier, according to its filings with the Registrar of Companies. The growth was driven by a cost efficiency drive, including strategic pricing adjustments to mitigate the impact of high inflation, it added. The company, which sells Lay’s chips, as well as Mirinda and Tropicana brands of beverages, said its FY23 earnings grew by 28.5% to ₹8,128 crore on the back of higher sales of both food and beverages.

The strong summer of 2022 also helped lift demand for its beverages even as it increased its investments in brand building and expansion. Over the last two years, PepsiCo added 200,000 outlets pan-India. “Last fiscal, PepsiCo India reported double-digit revenue growth in both foods and beverages.

Despite the challenges coming from the two years of covid and commodity inflation, we’ve also been able to improve our profit and margins," said Ahmed ElSheikh, president, PepsiCo India. Despite being battered by high inflation which drove up manufacturing costs, PepsiCo stepped up productivity across categories. “Despite challenges on commodities and covid, we made sure that we remain invested in our brand activities.

That is obviously helping us drive the top line. The other area we continue to invest in is capacity, particularly on foods. We also put out a lot of innovative products and it will continue to be a theme," he said.

To be sure, PepsiCo operates a large foods and beverages business in the country. However, its beverages business vis-vis manufacturing and distribution is managed by its local bottling partner Varun Beverages that operates over 30 production facilities in India. The company is also set to commence construction of its fifth foods plant in