PepsiCo India posts 62 pc drop in FY22 net profit
PepsiCo India Holdings has had a 62 per cent decrease in its net profit for FY22, which is a result of the food and beverages major PepsiCo India Holdings. It dropped from Rs 73 crore in the previous fiscal to Rs 28 crore. According to the company's annual report filed with the Registrar of Companies RoC and a detailed financial analysis from the research platform, Tofler, the total operating revenue went up by 24 per cent from Rs 5,032 crore to Rs 6,240 crore.
Of its total revenue, Rs 754 crore or 12 per cent came from the water business, which includes mineral and aerated waters, while the rest 88 per cent was accounted for by the food preparation segment. PepsiCo India's portfolio consists of brands such as Mountain Dew, Pepsi, Sting, Lay s, Kurkure and Doritos. Its carbonated beverages are produced, bottled and distributed by Varun Beverages.
Total expenses were up 24 per cent in FY22. Key factors to this include the purchase of stock-in-trade from Rs 183 crore to Rs 319 crore and advertising promotional expenses from 1989 to Rs 601 crore. Duke and Sons acquired Duke and Sons in India and brought into the fold their brands, known for their Lemonade and Mangola offerings. After the buyout, Duke s was a big name in western India and PepsiCo and phased out the brands in 2004.
In response to a set of questions from Business Today, PepsiCo India spokesman said, Despite inflation, PepsiCo India witnessed strong double-digit growth both in revenue and volume across our product portfolio for FY 22. The company delivered a fifth year of profit and witnessed an increase in EBIDA despite the challenging operating environment and macroeconomic headwinds. It went on to say that the company continued to invest in both customer facing activations and building capacity for future growth. Advertising marketing spends, depreciation, and investment in capacity are reflected in this. The statement said that the increase in expenses was due to commodity inflation, advertising and marketing spend, investment in capacity building and new offices and direct consumer engagement activities. The increase in volume growth had to be supported by increasing assets, plant operations, distribution channels and storage facilities. PepsiCo is directly up against Coca-Cola and its brands, which include Thums Up, Sprite and Coke. Speaking of packaged drinking water, Aquafina fights for market share with Bisleri and Kinley, while Tropicana s juice brand competes against Dabur s Real, Minute, Coca-Cola s Maaza, Parle Agro s Frooti and ITC s B Natural among others. There is competition from a host of national and regional players in the snack business.