PepsiCo sees strong Q2 growth in India; Snacks, beverages drive international surge
PepsiCo's $37 billion international business accounted for 40 percent of its net revenue in 2024.
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PepsiCo on Thursday announced its Quarter 2 results for 2025. The multinational food and beverage company reported a low-single-digit organic revenue growth, posting $22,726 million in the quarter ended on 14 June 2025, compared to $22,501 million in the same period last year.
Notably, the international beverages segment delivered 9 percent organic revenue growth in Q2 2025. According to the company, the growth was aided by the performance of the trademark Pepsi, which gained market share in several countries year-to-date, including India, China, Mexico, Brazil, and the UK.
In addition, the convenient food category, which includes popular snack brands like Lay's, Doritos, and Cheetos, posted 4 percent organic revenue growth, driven by strong demand in India, China, Thailand, Mexico, Brazil, Colombia, and Saudi Arabia.
PepsiCo's $37 billion international business accounted for 40 percent of its net revenue in 2024.
"Our business remained resilient during the second quarter, navigating through a complex geopolitical and macroeconomic environment," Ramon Laguarta, Chief Executive Officer, PepsiCo, said.
"Second quarter results featured a sequential acceleration in organic revenue growth, which included organic volume growth for our global snack foods, with our international business delivering 6 percent organic revenue growth and core operating margin expansion. We expect our international business to continue to perform well as we build on the development and success of its global reach and strong competitive positions within attractive and profitable categories," he added.
PepsiCo reported that its overall operating profit declined 55 percent to $1,789 million in the US market in Q2 2025, compared to $4,048 million in the previous year. However, the international operating profit rose by 9 percent during the same period.
The New York-based company emphasized its strategy to scale and expand its international presence by delivering offerings according to local preferences.
"We will adapt our price pack architecture to offer consumers more value and convenience," the company noted.
Laguarta expressed confidence that the company will remain resilient during the whole calendar year, led by international business.
To support its commercial investment, PepsiCo announced plans to expand automation across plants, warehouses, and distribution centres.
"We continue to expect incremental supply chain costs (primarily related to the sourcing of certain global inputs and ingredients and related tariff impacts) for the balance of 2025 and are implementing mitigation strategies to partially reduce these incremental costs," the company said in its 2025 outlook and guidance section.
