PepsiCo beats earnings estimates as health drive pays off

US drinks and snacks maker PepsiCo has been boosted by its shift in focus towards so-called "guilt free" products, after it surpassed analysts' expectations in its quarterly financial report.

The company posted earnings per share of $1.20 during the fourth quarter, excluding special items, just higher than the $1.16 forecast by experts.

PepsiCo, which counts on such brands as Mountain Dew and Doritos, reported that 45% of its revenue now comes from lower calorie drinks and snacks. Healthier eating habits in key regions such as North America pushed this figure upward.

Sales for the last quarter of 2016 also gained 5% compared to the year ago period, in line with expectations.

The quarter rounded off a solid year for the company in which it either met or exceeded its previous estimates.

"We concluded 2016 with another strong quarter of operating performance, capping off a successful year. We met or exceeded every financial goal we set for 2016, while delivering a good balance between revenue performance and productivity," said Chairman and CEO Indra Nooyi.

"Looking ahead to 2017, we expect solid financial performance despite anticipated continued macroeconomic challenges. Further, reflecting our commitment to providing attractive cash returns to shareholders, we are increasing our dividend per share for the 45th consecutive year, beginning with our June 2017 payment."

PepsiCo shares were 0.38% higher in pre-market trading on Wall Street.