PepsiCo Inc (NASDAQ:PEP, ETR:PEP) shares slipped 2.5% after it suffered weaker demand in the US, having faced recalls of products and backlash for hiking prices of its drinks and snacks.
Despite the headwinds, the Pepsi and Lays owner was able to beat Wall Street estimates for both its quarterly earnings and revenues.
Sales during the first three months of its financial year came in at US$18.25 billion compared to analyst predictions of US$18.07 billion.
Adjusted earnings per share reached US$1.61 compared to the US$1.52 Wall Street had forecast.
However, much of the sales beat was driven by price hikes, with the company suffering from lower volumes.
In PepsiCo’s food division, volumes dropped 0.5%, while its beverage segment kept flat year-on-year.
Meanwhile, a risk of potential salmonella contamination in Quaker Foods cereals and bars back in December led to the group issuing a country-wide recall.
This only added to the issue of weakened volumes, with the group’s North American Quaker Foods division dropping by 22% in the quarter and the total company experiencing a 1% fall.