PepsiCo has voiced confidence in its international business growth for the upcoming year, with India standing out as a key market poised for strong performance. This announcement comes as the beverage giant reveals its first-quarter results for the year ending March 22, though it tempered its 2025 earnings forecast due to ongoing tariff issues and rising supply chain costs.
During the post-earnings call with investors, Ramon Laguarta, the Chairman and CEO of PepsiCo, emphasized, “International business continues to be the largest growth engine for the company. We started the year at a good pace and we see the business continue those trends. We are seeing markets like India and Brazil are in a good place.”
In the first quarter, PepsiCo’s international beverages business experienced impressive results, achieving 11% organic revenue growth, driven largely by strong performances in China, India, Egypt, Turkey, Mexico, the United Kingdom, and Australia. The company’s international convenient foods division also reported a modest 2% organic revenue growth, supported by gains in Brazil, India, Egypt, and Turkey.
With brands such as Kurkure, Lay’s, Quaker Oats, Pepsi, and Mountain Dew in its portfolio, PepsiCo noted that India played a significant role in fueling the overall momentum of its international business. The company’s focus remains on expanding its footprint in these high-growth markets, which are expected to continue driving future success.
Despite the positive news from India, PepsiCo acknowledged the difficulties faced in other regions, particularly the United States, where tariffs have weighed heavily on costs. The company revised its full-year earnings forecast, now projecting flat adjusted earnings per share, a sharp drop from the previously anticipated mid-single-digit growth. The global leader cited a 25% tariff on imported aluminum and a 10% tariff on concentrates produced in Ireland for the U.S. market as major contributors to this adjustment. Additionally, decreased consumer spending has added to the pressures.
As the global economic landscape remains uncertain, PepsiCo’s focus on international expansion, especially in promising markets like India, positions it well to navigate these challenges and drive future growth.
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