Heinz Chairman Reviews "Excellent" Third-Quarter Results and Reaffirms Plans for FY2013

Feb 23 2012 --- H.J. Heinz Company Chairman has announced at Consumer Analyst Conference that his Company delivered: "excellent third-quarter results with growth of more than 7% in sales and 13% in earnings per share before special items."

H.J. Heinz Company reported third-quarter sales growth of 7.2%, led by dynamic growth in Emerging Markets and higher Global Ketchup sales.

 

Net income was $284.7 million, or 88 cents per share, in the third quarter ended on Jan. 25, up from $273.8 million, or 84 cents per share, a year earlier. Emerging Markets delivered 19.8% organic sales growth and accounted for more than 20% of total Company sales.

 

The company’s Chairman, President and CEO William R. Johnson said that as the Company adapts "[their] proven strategy to drive sustainable growth and shareholder value in this rapidly changing global environment."

 

Following on from last week’s report of a higher quarterly profit, Mr. Johnson reviewed those results and announced four key elements of the Company's growth strategy in his presentation at the annual conference of the Consumer Analyst Group of New York in Boca Raton, Florida.

 

"Heinz delivered its 27th consecutive quarter of organic sales growth (volume plus price) and the strongest growth in nearly three years, with every segment of our global portfolio contributing. I expect this growth streak to continue into the fourth quarter," Mr. Johnson said.

 

"Our third-quarter performance was fueled by excellent organic sales results from our trio of growth engines: Emerging Markets, the biggest driver with growth of 20%; Global Ketchup, which delivered very strong organic sales growth of 9%; and our Top 15 brands, which grew sales by 6%." On a reported basis, Emerging Markets sales grew 39.7%, Global Ketchup sales rose 8.6%, Top 15 brands increased 10.6% and earnings per share grew 4.8%.

 

Mr. Johnson reaffirmed the Company's Fiscal 2012 full-year reported EPS outlook of $3.32 to $3.34 from continuing operations, excluding special items. Included in this range is an expected benefit from foreign exchange of approximately $0.05. "Our guidance is based on our third-quarter results, expected returns from our continued investment in marketing, which parenthetically is up 10% year-to-date, and ongoing investments in new capabilities," Mr. Johnson said. "Overall, we continue to perform well in a difficult environment."

 

Mr. Johnson added: "We expect to deliver our Fiscal 2012 outlook and I remain confident in our plans for Fiscal 2013." Heinz will provide further details on Fiscal 2013 at the Company's Analyst Day on May 24 in New York.