PepsiCo reported better-than-expected second-quarter profit despite continued weakening customer demand for snacks and beverages.
PepsiCo said demand for Frito-Lay snacks in North America was “subdued” during the quarter.
Chairman and CEO Ramon Laguarta said the company plans to ramp up trading and advertising later this year.
Net profit for the April-June period rose 12% to $3 billion (£2.3 billion), or an adjusted $2.28 (£1.77) per share.
Wall Street had expected profits of $2.16 (£1.68) per share.
Revenue rose less than 1% to $22.5bn (£17.4bn).
Global sales volume fell 3% in the second quarter, marking the company’s eighth consecutive quarter of declining volume.
PepsiCo has said some of the volume declines are strategic as it shrinks package sizes, but it also sees lower-income American customers buying less snack food or switching to its own brands amid rising prices.
PepsiCo, based in Purchase, New York, has implemented significant price hikes over the past two years due to rising raw material and packaging costs.
Q4 2023 marks the company’s eighth consecutive quarter of double-digit price increases, after prices increased 5% in the first quarter and 3% in the most recent quarter.
Shares fell nearly 2% in early trading.
