(Reuters) -PepsiCo said on Thursday that it was expecting a smaller drop in annual core profit, helped by a rebound in demand for its energy drinks and healthier soda brands in the United States as well as benefits from favorable foreign exchange rates.

PepsiCo shares were up 1.2% in premarket trading after the company reported a surprise rise in second-quarter revenue. The stock is down about 11% this year.

The company now expects full-year core earnings per share to fall 1.5%, compared with a 3% decline expected previously.

"Our core USD EPS outlook has improved versus our previous expectations as foreign exchange headwinds have moderated, due to the weakening of the U.S. dollar," CEO Ramon Laguarta said in a statement, adding that North America business improved in key categories and channels.

PepsiCo, like rival Coca-Cola, has responded to a shift towards healthier snacking from consumers by offering options such as its recently acquired prebiotic soda brand Poppi and new flavors under popular brands such as Lay's and Doritos.

While higher prices over the past few years have helped shield the company's margins, PepsiCo is also trying to offer more products are lower price points to appeal to cost-conscious consumers.

The company's second-quarter revenue rose about 1% to $22.73 billion, compared with analysts' average estimate of a 0.99% decline to $22.28 billion, according to data compiled by LSEG.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Anil D'Silva)