Reported EPS in the quarter remained flat at US$0.71, while core earnings per share - earnings excluding one-time charges - dropped 7% to $0.69. Management said this was "in line with expectations".
Reported operating profit remained flat at $1.72bn and included $84m in mark-to-market gains on commodity hedges and $35m of restructuring, impairment and integration charges. Core operating profit declined 6%.
Net sales rose 4% to $12.43bn. PepsiCo said it grew net revenue in three of its four business units on a reported basis and all four business units on an organic basis.
Frito Lay North America sales climbed 4% in the quarter, reflecting six percentage points of effective net pricing. Volume performance, however, was negatively impacted by around two percentage points due to the extra week of results in 2011. Operating profit increased from the division 2%.
Sales in PepsiCo's Latin America Foods division grew 11%, boosted by a 15% increase in volumes. Operating profit from the unit rose 10%.
Sales from Quaker Foods North America, however, slid 3% reflecting "general category trends". Operating profit dropped 10%, primarily due to the benefit from an inventory accounting change Pepsi recorded in the prior year.
Quaker Foods North America, however, saw its sales slide 3% reflecting "general category trends". Operating profit dropped 10%, primarily due to the benefit from an inventory accounting change recorded in the prior year, which contributed 7 percentage points to the decline.
In Europe, PepsiCo saw its revenue increase 13% reflecting the benefit of the Wimm-Bill-Dann acquisition and a "double-digit" increase in snacks volumes. PepsiCo's operating profit in Europe grew 29%, although core operating profit increased 2.5%.
In Asia, Middle East and Africa, net revenue grew 12% as snacks volumes rose 16%. Operating profit from the division increased 2%. Core operating profit grew 7%.
PepsiCo chairman and CEO Indra Nooyi said: "Our first-quarter results reflect the strength of our brands which allowed us to implement significant pricing actions.
"With disciplined pricing now in place, we're doubling our focus on the other key initiatives for 2012. Our top priorities include stepping up our brand support through increased advertising and marketing, accelerating our innovation, and driving an aggressive productivity agenda that includes a significant restructuring programme."
The company stood by its 2012 outlook, which forecasts earnings will fall 5% from the $4.40 per share reported for 2011. PepsiCo expects net sales growth in the low single-digit percentage range.
PepsiCo's stock rose 0.2% to $66.67 in New York yesterday.
