PepsiCo Inc. posted stronger-than-expected sales growth thanks to robust demand in its international divisions, while volumes dropped in North America.

The owner of Mountain Dew sodas and Frito-Lay chips said that net revenue in the first quarter rose 2.7 per cent, beating the average analyst estimate of 2.3 per cent.

Sales in Pepsi’s international business, which represented nearly 40 per cent of total net revenue last year, were up 9 per cent. Emerging markets such as Mexico, Brazil and China delivered double-digit organic revenue growth, as did Australia, while sales in Britain were up by the high single digits.

After a period of the highest inflation in four decades, makers of branded consumer goods have suffered declining volumes as shoppers, especially in the U.S., switch to supermarket own-brands. Pepsi’s North American food and drinks divisions sold fewer goods by volume compared with a year earlier. Drinks volumes were down 5 per cent in the region.

Chief Executive Officer Ramon Laguarta said on a call with analysts that globally the consumer is very resilient, supported by low unemployment and growing wages. But there is a weak spot in the U.S.: “The lower-income consumer in the U.S. is stretched, is strategizing a lot to make their budgets get to the end of the month,” he said, adding that PepsiCo is making an effort to keep those poorer Americans buying its products.

North American revenue from Quaker Foods, the oats brand, fell 24 per cent after the company expanded a recall to include more cereals, bars and snacks due to a risk of salmonella. The company said it has restarted limited production of some of the affected products.

PepsiCo shares fell as much as 2.9 per cent in New York trading Tuesday, the most since February. The stock was up 3.9 per cent this year through Monday, trailing the 5.1 per cent rise of the S&P 500 Index.

The company confirmed its 2024 outlook of organic sales growth of at least 4 per cent, with North America lagging the rest of the business.

Compared with a year earlier, Pepsi won savory-snack market share in China, India, Brazil, Australia and Pakistan. For drinks, it picked up share in Brazil, Turkey, South Korea, Thailand, Vietnam and Pakistan.

With assistance from Brett Pulley.