08:41 AM EDT, 04/23/2024 (MT Newswires) -- PepsiCo ( PEP ) on Tuesday reported better-than-expected fiscal first-quarter results aided by price increases, even though certain product recalls weighed substantially on the beverage and snacks company's Quaker Foods business in North America.

Adjusted earnings came in at $1.61 a share for the three months through March 23, up from $1.50 the year before and ahead of the Capital IQ-polled consensus of $1.52. Revenue inclined 2.3% to $18.25 billion, topping the Street's view for $18.1 billion.

Overall net pricing had a positive impact of 5% on the topline, while consolidated organic volume slipped 2%. Volume edged down 0.5% in the company's convenience food business, while it remained flat in beverages.

"During the first quarter, our businesses remained agile and performed well, with a strong performance from our international business," Chief Executive Ramon Laguarta said in a statement. "We delivered a sequential improvement in our volume trends, and year-over-year growth in our net revenue, operating profit margin and EPS -- despite the impact of certain product recalls at Quaker Foods North America and a difficult net revenue growth comparison from the prior year."

In North America, the Quaker Foods business saw organic revenue tumble 24% due to the product recalls and soft category growth, Laguarta and Chief Financial Officer Jamie Caulfield said in prepared remarks. The company recently disclosed plans to shut down the manufacturing facilities involved in the recalls and resumed limited production of certain products through other plants.

PepsiCo's ( PEP ) Frito-Lay snack division delivered organic revenue gains of 2%, with trademark brands such as Cheetos and Doritos logging "mid-single-digit net revenue growth." Organic revenue in the beverages unit ticked up 1% as Pepsi and Mountain Dew recorded net revenue increases, led by zero sugar variants, according to the company.

For fiscal 2024, the company continues to anticipate adjusted EPS of at least $8.15, in line with the Street's current forecast. It also reiterated its organic revenue guidance for growth of at least 4% and foreign exchange to be a roughly 1 percentage point headwind.

"As we look ahead, we continue to expect a normalization and moderation in category growth rate versus the last few years," Laguarta and Caulfield said. "Geographically, we continue to expect international organic revenue growth to exceed North America organic revenue growth."

Growth in the Frito-Lay and beverages businesses "should improve" as fiscal 2024 progresses with more favorable comparisons, especially in the back half of the year, Wedbush Securities said in a Tuesday client note. The brokerage has an outperform rating on PepsiCo's ( PEP ) stock with a 12-month price target of $195.