PepsiCo's first-quarter net income fell slightly, as the food and beverage giant raised prices to make up for rising commodity costs.
The maker of soda, Tropicana juice and Doritos tortilla chips earned $1.13 billion, or 71 cents per share, in the first three months of the year.
That compares with $1.14 billion, or 71 cents per share, during the same time last year.
Like many other food and beverage companies, PepsiCo is struggling to balance higher commodity costs without scaring off budget-conscious consumers with too many price increases. The company says it was able to raise prices in the latest quarter on the strength of its brands.
Overall, PepsiCo, said its changes to pricing and packaging of its snacks and drinks boosted revenue by 5% in the quarter. That helped offset a $300m increase in costs for ingredients.
With the new pricing measures in place, chief executive Indra Nooyi said PepsiCo can focus on its plans to rejuvenate its business in the year ahead. That will include increased advertising dollars for its flagship brands and the implementation of a cost-cutting programme.
PepsiCo incurred restructuring charges of $33m in the quarter. The company said it anticipates additional charges of about $392m for the rest of the year.
The company said that its revenue increased to $12.43 billion, from $11.94 billion a year ago - slightly better than expectations. The increase was driven primarily by gains in emerging markets, while revenue from the company's beverage unit in the Americas dipped by 2%
In addition to its namesake soda, PepsiCo's portfolio of brands includes Tropicana, Gatorade and Quaker Oats.
