PURCHASE, NY. — PepsiCo, Inc. posted revenue growth of 2.3% in the first quarter ended March 23 despite the impact of product recalls at Quaker Foods North America and comparisons against high revenue growth in the previous year’s first quarter.

Net income increased 6% to $2.04 billion, or $1.48 per share on the common stock, from $1.93 billion, or $1.40 per share, in the previous year’s first quarter. Revenues of $18.25 billion were up from $17.85 billion.

Organic revenue increased 2.7%, which compared with 14% in the previous year’s first quarter. The recalls at QFNA had a negative impact of one percentage point on organic revenue in this year’s first quarter.  PepsiCo continues to expect at least 4% organic revenue growth in the fiscal year.

BofA maintained a “buy” rating for PepsiCo, noting organic sales growth was in line with BofA’s estimates.

“We believe (PepsiCo’s) premium to non-alcoholic beverage peer average of 23 times is warranted by their strengthened position and pricing power to manage through the ongoing inflationary environment,” said Bryan D. Spillane, research analyst at BofA.

PepsiCo gave its financial results on April 23. The company’s stock price on the Nasdaq that day closed at $171.22 per share, which was down 3% from an April 22 close of $176.46.

Ramon Luis Laguarta, chief executive officer of PepsiCo, said he sees two reasons for optimism in North America.

“No. 1, I think wages are growing above inflation, and we see that not only in the US but across the world, and we see our consumer packaged food inflation below, I would say, total CPI (Consumer Price Index),” he said in an April 23 earnings call. “So those two numbers make us feel comfortable that the consumers will start coming back to our categories.”

Within Frito-Lay North America, revenue rose 1.7% to $5.68 billion from $5.58 billion. An organic revenue increase of 2% compared to 16% in the previous year’s first quarter. Cheetos and Doritos delivered mid-single-digit revenue growth while smaller brands like Miss Vickie’s and Bare that are geared to specialty occasions or positive choices had double-digit revenue growth. SunChips had high single-digit revenue growth. PopCorners and Stacy’s each delivered mid-single-digit revenue growth.

Within PepsiCo Beverages North America, revenue increased 1.2% to $5.87 billion from $5.80 billion. Zero-sugar varieties of the brands Pepsi and Mountain Dew powered the revenue increase. Market share in Gatorade improved. Organic revenue at PBNA increased 1%, which compared with 12% in the previous year’s first quarter.

While Laguarta acknowledged volumes were weak for Gatorade in the quarter, he added the brand and Mountain Dew gained market share.

“So that’s a meaningful good performance, I would say,” he said. “Now Gatorade, as you mentioned, a little bit of weather impact. So we’re not concerned about Gatorade this year as the weather improves, I think we have the right investments, the right commercial programs.”

PepsiCo plans to “de-emphasize” certain low-profit or no-profit product and package combinations within PBNA.

Revenue at QFNA plunged 24% to $593 million from $777 million while volume fell 22%. The operating loss at QFNA was $49 million. As the year progresses PepsiCo expects QFNA production to increase and financial impacts associated with the product recalls to moderate.

Last December a voluntary recall at Quaker involved select granola bars and cereals in the United States, Puerto Rico, Guam and Spain due to potential contamination of Salmonella. Quaker in April of this year said it permanently will close a facility in Danville, Ill., linked to the recall.