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."