PepsiCo has posted a rise in its Q1 profits. The drinks giant has also raised its profit forecast for the full year.

PepsiCo today (14 April) reported a quarterly profit increase of 13% to US$912m for the first quarter of 2005. Earnings per share rose by 15% compared to the corresponding period last year, reaching US$0.53. Net revenue increased by 7% hitting US$6.59bn, with each of the company's operating divisions boasting solid top line growth.

In a statement, chairman and CEO Steve Reinemund said: "I am pleased with our performance for the first quarter. The strength of the portfolio continues to prove itself, with each operating division performing well, giving me confidence in our outlook for the full year."

At the same time as issuing the results, PepsiCo raised its earnings-per-share forecast for the full year by 1 cent due to an adjustment in its expected tax rate. The company now predicts earnings per share of at least US$2.56 for the full year.