Heinz Positive About First Quarter Results
Heinz expects organic sales growth (volume plus price) in Q1 of more than 5% across its global businesses including double-digit organic sales growth of the Company's Ketchup, Beans and Soup brands.
15/08/07 In a pre-earnings announcement, H. J. Heinz Company has said that it expects to report strong first quarter results on August 24, 2007, including sales growth of approximately 9%, operating income growth of approximately 14% and EPS of $0.62 to $0.63.
Heinz expects organic sales growth (volume plus price) in Q1 of more than 5% across its global businesses including double-digit organic sales growth of the Company's Ketchup, Beans and Soup brands. The accelerated revenue growth reflects the launch of new, innovative and healthy products and an approximately 25% increase in consumer marketing in the quarter.
The Company's anticipated 14% operating income growth reflects both strong sales and productivity improvements. Heinz's broad international portfolio performed extremely well and was further enhanced by foreign exchange in the quarter which helped offset higher commodity costs. The expected higher EPS in the quarter will be driven by strong double-digit operating income growth and a tax rate which is expected to be between last year's rate of 20.3%, and this year's full-year average of 31% to 32%.
As a result of the fast start to the fiscal year, Heinz now expects its full-year results to be near the top of the Company's previously announced FY2008 earnings range of $2.54-$2.60, a growth rate of 8% to 9%.
