Heinz net income up 22% in fiscal '07

by FoodBusinessNews.net Staff
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PITTSBURGH — For the fiscal year ended May 2, The H.J. Heinz Co. had net income of $785,746,000, equal to $2.39 per share on the common stock, up 22% from $645,603,000, or $1.90 per share, during the same quarter of the previous year.

Sales for the year were $9,001,630,000, up 4% compared with $8,643,438,000 during the previous year. Sales in the ketchup and sauces category were $3,682,102,000, meals and snacks had sales of $4,026,168,000 and the infant foods category had sales of $929,075,000. Sales in the "other" category totaled $364,285,000.

"Fiscal 2007 was a great year for Heinz as our business units successfully executed the first year of the FY07/08 superior value and growth plan, meeting or exceeding our key financial targets," said William R. Johnson, chairman, president and chief executive officer. "We greatly enhanced our focus on the consumer with a stronger spotlight on health and wellness, increased investment in marketing for future growth, greater R.&D., and impressive productivity measures that helped offset $180 million in commodity inflation."

Sales in the North American consumer products segment increased 7% during the year, with volume increasing nearly 3%. Operating income in this segment was $625,675,000, up 7% from $583,367,000 during 2006.

In the U.S. Foodservice segment, sales decreased 0.9%, and volume fell 0.4%. Operating income was $216,115,000, up 8% compared with $177,292,000 during the same quarter during the previous year.

The European segment had a 3% increase in sales with volume down 2%. Operating income was $566,362,000, a 4% increase compared with $414,178,000 during the same quarter of 2006.

Sales in Asia/Pacific increased 8% with volume increasing 4%. Operating income was $135,782,000, up 6% compared with $85,211,000 during the same quarter of 2006.

In the Rest of World segment, sales increased 3% with volumes up 6%. Operating income was $53,879,000, a 202% jump compared with $17,854,000 during the same quarter of the previous year.

For the quarter ended May 2, Heinz had net income of $181,032,000, or 56c per share, an 8% increase compared with 167,909,000, or 50c per share, during the same quarter of the previous year. Sales during the quarter were $2,414,293,000, nearly flat compared with $2,399,652,000 during the same quarter of 2006.

For the fiscal year 2008, Heinz forecast a sales growth of about 4% and an earnings per share range of $2.54 to $2.60.

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