PepsiCo beat Wall Street expectations for first-quarter revenue on Tuesday (Apr 23) as demand held steady for the soda and snacks giant’s Tropicana juices and Cheetos in its international markets.

Consumers have remained resilient and shelled out money for PepsiCo’s Lays chips and 7UP products across the company’s international markets, helping offset a slowdown witnessed in its major market United States.

Several rounds of price hikes in the US have led consumers in the region to push back on the company’s sodas and juices as sticky inflation makes customers cautious with their spending.

The company’s international business accounted for about 40 per cent of its total fiscal 2023 revenue.

PepsiCo’s average prices jumped 5 per cent for the quarter ended March 23, while organic volume slipped 2 per cent. That compared with an average price increase of 9 per cent in the fourth quarter of 2023.

Sales at the company’s North America beverage unit, PepsiCo’s largest business, rose 1 per cent in the first quarter, while organic volumes fell 5 per cent.

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The company’s net revenue rose to US$18.25 billion in the quarter from US$17.85 billion a year earlier, while analysts had estimated US$18.07 billion, according to LSEG data.

PepsiCo maintained its annual organic sales and core profit forecasts.

On an adjusted basis, the company earned US$1.61 per share. Analysts had expected a profit of US$1.52 per share. REUTERS