Heinz profit grows 6% in 1st quarter
PITTSBURGH — H. J. Heinz Co. said Friday its fiscal first-quarter earnings grew 6 percent, driven by double-digit growth in ketchup, beans, soups and Smart Ones meals, and the ketchup maker raised its outlook for the full year.
Net income rose to $205.3 million, or 63 cents per share, from $194.1 million, or 58 cents per share, a year ago. Sales climbed 9 percent to $2.25 billion for the quarter ended Aug. 1 from $2.06 billion in the prior-year period.
Analysts surveyed by Thomson Financial expected profit of 63 cents per share on revenue of $2.23 billion. Last week, Heinz said it anticipated first-quarter earnings of 62 to 63 cents per share, compared with Wall Street's consensus estimate of 55 cents per share.
Shares rose 21 cents to $45.43 Friday.
Sales of the company's top-15 brands grew 11 percent year-over-year, as sales of ketchup rose 13 percent and sales of beans and soups increased about 25 percent. Sales of healthy entrees line Smart Ones grew 25 percent, buoyed by the successful launch of Smart Ones Anytime Selections.
William Johnson, Heinz's chairman, president and chief executive, said he was pleased with momentum in the U.S., strong results in Asia and a rebound in Europe.
"Our first-quarter performance was outstanding considering a higher tax rate in the quarter and rising raw material prices, partially offset by favorable foreign exchange," he said.
Sales in beans, soup and Smart Ones meals reflect the company's investment in healthier and more convenient products, he said.
Sales in emerging markets — including Russia, India, China, Indonesia, Poland and Latin America — grew 15 percent.
