PepsiCo expects smaller annual core earnings decline

PepsiCo PEP said on Thursday that it was expecting a smaller drop in annual core profit as resilient demand for its energy drinks and healthier soda brands offsets broader weakness in consumer spending.

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.

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.