PepsiCo reported higher-than-expected earnings in the second quarter even as customer demand for its snacks and drinks continued to slip.

The Purchase, N.Y.-based company said its net income rose 12% to $3 billion, or an adjusted $2.28 per share, for the April-June period. Wall Street had expected earnings of $2.16 per share.

PepsiCo said its revenue grew less than 1% to $22.5 billion. That was slightly lower than the $22.59 analysts forecast.

PepsiCo has leaned heavily into price increases over the past two years as its costs for ingredients and packaging rose. The fourth quarter of 2023 was the company’s eighth straight quarter of double-digit percentage price increases. Prices rose 5% in the first quarter and 3% in the most recent quarter.

But those higher prices have hurt demand. PepsiCo’s global sales volumes have fallen for the last eight quarters. The company says some of that volume decline is strategic, since it has been shrinking package sizes. But it has also says lower-income U.S. customers have been buying fewer snacks or switching to store brands.