PepsiCo beat third-quarter earnings expectations on Thursday but cut its full-year profit forecast as rising costs and a weak North American business weighed on margins.

The snacks and soda maker reported adjusted earnings of $2.34 a share on revenue of $25.27 billion, up 5.6 per cent from a year ago. Analysts had expected $2.30 a share on $24.96 billion in revenue.

The beat was overshadowed by guidance. PepsiCo now expects core earnings per share to grow 2.5 to 3.5 per cent this year, down from its earlier forecast of 5 to 7 per cent growth.

CEO Ramon Laguarta said the international business showed ‘scale and resilience’ but the North American unit ‘performed below our expectations’. The company is exploring cost cuts and plans low-to-mid single-digit price increases on some snacks.

PepsiCo shares, down 14 per cent this year, trade near their lowest since 2020. ‘We don’t expect the consumer to suddenly be in a much better place in the next 12 to 18 months,’ Laguarta said.