PepsiCo has reported better than expected quarterly net revenue and profit, helped by higher demand in North America for its lineup of beverages and snacks with fewer calories and more natural ingredients.
The company also raised its 2016 adjusted profit forecast.
PepsiCo and other processed-food companies are investing heavily to develop products to meet the changing tastes of consumers, who are increasingly seeking healthier options.
PepsiCo that about 45% of its net revenue now came from "guilt-free" products - beverages that have fewer than 70 calories per 12 ounces and snacks that have lower amounts of salt and saturated fat.
PepsiCo's healthier brands include Propel flavoured-water, Naked Cold Pressed juice and its "Simply" line of foods featuring products such as organic salsa and chips made from black beans, which have helped drive sales in recent quarters.
The company said it was expanding its offerings of baked chips, which include Baked Lays and Baked Cheetos, to more markets outside the US.
PepsiCo's businesses in Russia, China and India improved in the third quarter, while Western Europe "is not getting worse," the company's chief executive Indra Nooyi said.
North America is the company's biggest market, accounting for about 60% of revenue in 2015.
However, the company's revenue fell for the eighth quarter in a row, hurt by high inflation in some Latin American economies such as Venezuela and Argentina and unfavourable exchange rates.
It said its net revenue fell about 2% to $16.03 billion in the third quarter, but beat the average analyst estimate of $15.83 billion, according to Thomson Reuters I/B/E/S.
Revenue in the North America beverages unit, the company's biggest business, rose about 3% to $5.52 billion. Excluding items, PepsiCo earned $1.40 per share, beating the average analyst estimate of $1.32.
The company said it was benefiting from a multi-year cost-cutting plan, which includes closing plants, simplifying its organisation structure and investing in automation.
PepsiCo said it was raising its full-year adjusted profit forecast by 7 cents to $4.78 per share.
