Heinz income falls 6% in fiscal 2010

by Staff
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PITTSBURGH — Strength in emerging markets contributed to a 9% increase in income during the fourth quarter, but income was still down 6% for the full 2010 fiscal year.

For the year ended April 28, Heinz posted income of $864,892,000, equal to $2.73 per share on the common stock, down 6% from $923,072,000, or $2.93, during the previous year. Sales for the year were $10,494,983,000, up 5% from $10,011,331,000 during the previous year.

“Heinz delivered strong profit with record sales and cash flow in fiscal 2010 as our businesses and iconic brands around the world performed well in a challenging and volatile global environment,” said William R. Johnson, president and chief executive officer. “Heinz’s emerging market businesses drove much of our growth paced by outstanding performances in India, Indonesia, Russia, Latin America and the Middle East.

Overall, it was another excellent year for Heinz as we significantly increased marketing and innovation to enhance our brand equity and drive volume growth in the second half after focusing on maintaining prior-year pricing to offset commodity inflation in the first half. Heinz improved gross profit margins, reflecting strong productivity gains while also improving shareholder equity and return on invested capital.”

For the fourth quarter ended April 28, the company had income of $192,366,000, or 61c per share, up 9% from $175,135,000, or 55c per share, during the same quarter of the previous year. Sales for the quarter were $2,724,810,000, up 8% from $2,515,768,000 during the same quarter of the previous year.

“We expect another year of strong growth on a constant currency basis for Heinz in fiscal 2011,” Mr. Johnson said. “Our outlook is based on robust plans for our brands and businesses. We continue to execute our proven strategy to grow our core portfolio, accelerate growth in emerging markets, leverage global scale and make talent an advantage. However, in this volatile economic environment, our reported results will likely be affected by significant currency fluctuations.”

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