PepsiCo has reported a rise of 4% in its net revenue during the first quarter of 2012.

Chairman and CEO Indra Nooyi said the first quarter results reflect the strength of their brands which allowed them to implement significant pricing actions.

"Effective pricing and packaging initiatives drove 5 percent constant currency net revenue growth, allowing us to substantially offset approximately $300 million in commodity cost inflation," Nooyi said.

"With disciplined pricing now in place, we’re doubling our focus on the other key initiatives for 2012.

"Our top priorities include stepping up our brand support through increased advertising and marketing, accelerating our innovation, and driving an aggressive productivity agenda that includes a significant restructuring program.

"All of these initiatives were launched in Q1 with good results, are on track, and will gain momentum as the year progresses. We’re executing on a clear, deliberate game plan that will enhance our competitiveness while also positioning PepsiCo for sustainable growth and value creation for the long term."

The beverage major’s net revenue was up in three of its four business units on a reported basis and net revenue increased in all four business units on an organic basis.

Global nutrition revenue increased 10% and the company’s net revenue increased 9% in emerging markets.

The company forged a strategic alliance with China-nased beverage manufacturer Tingyi.

PepsiCo Americas Beverages (PAB) net revenue declined 2%, reflecting the effect of the refranchising efforts of the division’s beverage business in Mexico, which reduced net revenue by 4% points.

PAB volume dropped 1% in the 2012 first quarter, with gains in Latin America and offset by a fall in North America.

Packaged ready-to-drink volume in North America increased high-single-digits, led by strong retail execution.

Growth in Latin America was driven by double-digit gains in Mexico, high-single-digit growth in Argentina and mid-single-digit growth in Brazil.

In Europe, the company’s net revenue went up 13%, due to the Wimm-Bill-Dann acquisition and 5% points of effective net pricing, affected partially by unfavourable foreign currency conversion impact of 4% points.

In Asia, Middle East & Africa (AMEA) markets, the company’s net revenue increased 12% due to effective net pricing and volume growth.

Beverage volume went up in AMEA markets led by double-digit growth in India, Saudi Arabia and the Philippines.

China beverage volume was affected due to the introduction of 500ml PET bottles in the third quarter of 2011, which drove unit growth but impacted reported volume growth.