PepsiCo beat Wall Street expectations for first-quarter revenue and profit on Tuesday as demand for its sodas and snacks like Cheetos and Doritos in international markets drove growth even as it witnessed a slowdown in the United States.

Consumers across Europe, Asia Pacific and China shelled out money for PepsiCo’s pricey sodas and chips, while customers in the US cut back on the products due to strained budgets.

“We’ve had three years of … massive consumer inflation and that has to be absorbed and I think the cumulative impact of that put a bit of strain on the consumer. But we expect that to abate as time goes on,” PepsiCo CFO Jamie Caulfield said.

The company’s average prices jumped 5 per cent in the first quarter. Its organic volume slipped 2 per cent, compared to a 4 per cent drop seen in the fourth quarter.

International business accounted for about 40 per cent of PepsiCo’s fiscal 2023 revenue, while its North America businesses accounted for the remaining.

PepsiCo has been expanding its portfolio in developed and emerging markets to drive demand by launching items such as flavored Quaker instant oats and Celsius energy drink, CEO Ramon Laguarta said.

Shares of the company, which also maintained its fiscal 2024 forecasts, fell 1.5 per cent.

First-quarter sales at PepsiCo’s largest business, its North America beverage unit, rose 1 per cent, while organic volume fell 5 per cent.

Total sales at its Quaker Foods North America unit fell 24 per cent following Quaker product recalls first made in December in the US due to a potential salmonella contamination.

PepsiCo expects its North America businesses to gradually improve as impacts associated with product recalls moderate.

The company’s first-quarter net revenue rose 2.3 per cent to $18.25 billion, beating LSEG estimates of $18.07 billion. PepsiCo’s core profit of $1.61 per share topped expectations of $1.52.

“This is going to be another year of price-led revenue growth even though pricing has come down,” Wedbush analyst Gerald Pascarelli said.