Many consumers are turning from fizzy drinks to healthier alternatives

Net profit fell to $864m (�491m) in the quarter ending 3 September from $1.4bn in the same period a year earlier.

But this included a one-off charge of $468m relating to the repatriation of $7.5bn in overseas earnings. Without the charge, profit topped estimates.

Pepsi shares rose almost 3% as the firm lifted its annual profit targets.

The shares added $1.44 to $56.50 in early trading in New York.

The rise came despite a warning from the company that higher fuel costs would hamper earnings growth.

New tastes

Analysts welcomed the report and said that Pepsi was well placed to cater to consumers and their changing tastes.

Many soft drink firms, including Coca-Cola, have been under pressure as consumers switch from full-sugar and full-fat drinks and snacks to low-sugar and low-carb versions.

They also have been buying more bottled water, analysts said.

Pepsi, which makes soft drinks Pepsi and Mountain Dew as well as snacks including Doritos and Quaker granola bars, has broadened its product line to meet consumers' needs better than some rivals, they said.

The company's sales in the past quarter rose to $8.2bn from $7.3bn a year earlier.

Leading the way was a 24% jump in non-carbonated beverage volumes, with Gatorade, Aquafina and Propel drinks producing double-digit growth.