PepsiCo's quarterly sales fell 3 percent, the sixth straight quarter of decline, hurt by a strong dollar and weakness in some markets including Latin America and Europe.
Shares of PepsiCo rose in premarket trading on the report. (Get the latest quote here.)
Pepsi said on Monday that sales in Latin America fell 26.3 percent to $1.04 billion in the first quarter, partly due to a strong dollar and the exclusion of its Venezuelan business. The region accounted for about 9 percent of PepsiCo's total revenue.
"Latin America is almost a 'Tale of Two Cities,'" said PepsiCo CFO Hugh Johnston on CNBC's "Squawk on The Street."
"Mexico continues to perform very well. Brazil [is] obviously facing challenges and Venezuela we de-consolidated out of PepsiCo's operation so that's not in our numbers going forward."
The strength in the dollar eroded the value of PepsiCo's sales also in other markets outside the United States, hurting total sales by 4.5 percentage points.
The average value of the dollar rose 2.6 percent against a basket of currencies in the first quarter.
Sales in Europe and sub-Saharan Africa declined 9.1 percent to about $1.36 billion.
Johnston was optimistic, yet cautious about foreign markets.
"Outside the U.S. the world is certainly more challenging," he said.
"Our developing and emerging markets business was up 7 percent which is a good solid number by any metric that you would use. But we're cautious on outside the U.S. because the world is such a volatile place."
The company's organic revenue, however, rose 3.5 percent in the quarter ended March 19.
"In particular, we saw strong performance in the U.S. as well as our everyday nutrition portfolio. In terms of the cost side, cost management excellent for the quarter," said Johnston.
Shares of PepsiCo, which maintained its forecast of 4 percent growth in 2016 organic revenue, were unchanged at $103.77 in premarket trading on Monday.
The net income attributable to PepsiCo fell nearly 24 percent to $931 million, or 64 cents per share, including an impairment charge of $373 million related to its interest in Tingyi-Asahi Beverages Holding Co.
Net revenue fell to $11.86 billion from $12.22 billion.
"We really saw both favorable commodities," said Johnston.
"The impact of our smart-spending initiative and that drove margins up significantly, 165 basis points for the quarter so a good start, but as we know, the world is a volatile place and that leads us to be cautious at this point in the year until we see more factors emerge."
— CNBC contributed to this report.