PepsiCo topped fourth-quarter revenue expectations on Tuesday, benefiting from robust demand for its sodas in international markets, as well as strength in its low-sugar beverages in the US.
Demand for more localized flavors of both snacks and sodas in countries such as India and Brazil boosted sales, even as it overhauls its portfolio in the US to meet the shifting tastes of consumers.
The company announced a review of its North America supply chain in December, weeks after activist investor Elliott Management built a stake and pushed for big changes at its struggling food business.
PepsiCo stuck to its annual core earnings per share target of 5% to 7% growth that it had issued in December.
READ MORE: PepsiCo forecasts weak annual profit as soda, snacks demand slows
PepsiCo, like other consumer-facing companies such as P&G and Coca-Cola, have turned focus to lower entry price points and smaller pack sizes as US consumers looked to make their budgets last in the face of inflation and challenges such as the government shutdown last year that delayed access to food stamp benefits.
Its beverages business in North America is undergoing a facelift with its prebiotic soda offering, as well as low- and zero-sugar beverages.
Volumes in the key North America food business fell 1% in the fourth quarter, following a 4% drop in the prior three months.
The Gatorade maker reported revenue of $29.34 billion for the three months ended December 27, compared with estimates of $28.97 billion, according to data compiled by LSEG.
International beverages volume grew 3%, while overall volumes in the beverages segment was up 1%.
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