HJ Heinz Q4 net income down 22%
summary：American food company HJ Heinz reported a 22% decline in net earnings in the fourth quarter ended 29 April 2012 to $175.3m, compared to $223.9m in 2011 due to one-time costs related to productivity initiatives as well as lower margins....
Sales grew 5.6% to $3.05bn, compared to $2.89bn in 2011, due to high sales in the emerging markets, which saw 17% rise in organic sales. Global ketchup sales rose 8.3%, driven by strong sales in Latin America, North America, the UK and Russia. The company's leading 15 brands witnessed 4.8% organic sales growth, led by Heinz brand products, Complan nutritional beverages in India, Master soy sauce in China, and ABC sauces and drinks in Indonesia.Heinz chairman, president and CEO William R Johnson said that Heinz delivered strong fourth-quarter results led by emerging markets, global ketchup and the company's top 15 brands.
"Excluding special charges, Heinz grew earnings per share by more than 17% and we delivered our 28th consecutive quarter of organic sales growth, supported by increased investments in marketing, productivity and Emerging Markets capabilities," Johnson added.
Segment wise, US food service - which offers products to restaurants and other businesses - saw 3.5% rise in organic sales to $382m, while operating income soared 38.4% to $52m, due to higher sales of branded ketchup and sauce.
North American consumer business sales inched down 2.2% to $843m, while operating income dropped 5% to $192m, as pricing actions implemented to offset higher commodity costs affected sales volume.
In Europe, sales grew 1.2% to $905m, while operating income fell 1% to $165m, due to unfavorable foreign exchange and higher marketing investments. Sales in Asia/Pacific region grew 4% to $673m, while operating income improved by 5.3% to $51m, driven by emerging market businesses.
In the rest of the world, sales jumped 111.1% to $247m, while operating income soared 33.5% to $22m, as result of the recent acquisition of Brazilian food brand Quero that boosted sales by 75.5%.