HJ Heinz Q4 net income down 22%
Sales grew 5.6% to $3.05bn, compared to $2.89bn in 2011, due to high sales in the emerging markets,…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%.
