PepsiCo Q2: India registers double-digit growth

PepsiCo reported a sharp 59% year-on-year decline in net income for the quarter ended June 14, 2025, falling to USD 1.26 billion from USD 3.08 billion in the corresponding quarter last year. The steep drop in profitability was primarily driven by a USD 1.86 billion impairment of intangible assets, which weighed heavily on operating income.

Net revenue for the quarter stood at USD 22.73 billion, up 1% from USD 22.50 billion in Q2FY24. However, operating profit more than halved to USD 1.79 billion, a 56% drop from USD 4.05 billion last year due to the impairment charge and a 2.8% increase in selling, general and administrative (SG&A) expenses, which rose to USD 8.77 billion.

For the 24-week period ended June 14, 2025, PepsiCo’s cumulative net revenue came in at USD 40.65 billion, nearly flat compared to USD 40.75 billion in the previous year, a slight 0.25% decline. Net income attributable to the company declined 39.6% year-on-year to USD 3.10 billion, down from USD 5.13 billion.

Despite the subdued consolidated performance, Chairman and CEO Ramon Laguarta reiterated confidence in the company's international strategy. He mentioned in the earnings call, "International has been a success story for us," Laguarta said during the earnings call. "India continues to show double-digit growth, and we’re also pleased with performance in Latin America, parts of Europe, and the Middle East. However, China has shown some softness post the Chinese New Year."

He added that both food and beverage categories internationally are growing at a mid-single-digit rate, and that these markets are now accretive to PepsiCo’s overall profitability, a marked shift from previous years when international operations lagged behind the U.S. in returns.

PepsiCo continues to emphasize strategic investments across global markets to drive category growth, which the leadership views as key to long-term business