'International business is largest growth engine, India in a good place': PepsiCo CEO Ramon Laguarta says

PepsiCo announced its Q1 result for 2025 on Thursday, with Chief Executive Officer (CEO), Ramon Laguarta pinning hopes on the international business.

During the Q1 2025 earnings call, Chairman and CEO Laguarta said, "The international business continues to be the kind of largest growth engine for the company, and we continue to invest in that business." Further, he said Europe is navigating 'quite well' and he is seeing 'India in a good place' too.

The company's international business reported 11% revenue growth in Q1. India also remained a key driver in its international convenience foods growth.

"Our international convenience foods business delivered 2% organic revenue growth. The growth was driven by India, Brazil, Egypt and Turkey," the company said.

"Overall, the portfolio of markets where we have the highest percentage of business is in a positive place, and we see the international business continuing to contribute to our growth at a mid-single-digit, some markets obviously high single digits in the balance of the year," the chairman said.

PepsiCo's net revenue in the first quarter was down 1.81% to $17.9 billion. The company's operating profit dropped 4.9% to $2.58 billion.

The foreign exchange headwinds impacted PepsiCo's Q1 revenue. The food and beverage giant has cut its forecast for constant currency earnings per share due to tariffs, macroeconomic uncertainty, and cautious consumers.

"Consumers have remained value‐conscious across brands and channels as the cumulative impacts of inflationary pressures have strained budgets and altered food shopping patterns," Laguarta said.

The company reiterated its outlook for a low-single-digit increase in organic revenue.

For fiscal 2025, PepsiCo mentioned, "continue to expect low-single-digit organic revenue growth and a core annual effective tax rate of 20%".