The maker of Pepsi, Gatorade and Lay's potato chips said net income rose to $1.66 billion, or $1.06 a share, from $1.42 billion, or 89 cents a share, a year earlier. Excluding items, Pepsi said it earned $1.09 a share, topping analysts' estimates of $1.05 a share, published by Thomson Reuters.

Net revenue fell 1 percent to $19.95 billion. However, after adjusting for the effect structural changes in the company's business and an extra selling week in 2011 and currency exchange rates, revenue climbed 5 percent.

Analysts had expected the company to report revenue of $19.70 billion according to a consensus estimate from Thomson Reuters.

For the full year, Pepsi expects its earnings on a constant currency basis to rise 7 percent to $4.10 a share.

Pepsi also announced that it would raise its dividend to $2.27 per share from $2.15 a share, effective in June.

In the company's press release, CEO Indra Nooyi said last year the company took "significant steps" in 2012 to better position the company's business for "sustainable, long-term growth."

"We increased our brand investment, stepped up our innovation, improved our marketplace execution and embarked on an aggressive productivity program that will contribute to our profitability and act as a funding source of future investment," Nooyi said.