US ketchup maker Heinz has booked a decline in full-year net income after charges related to the group's efficiency drive hit the bottom line.
Net income in the 12 months to 29 April fell to US$939m,down from$1bn in 2011.The company said profits were dented by charges of$224m linked to initiatives to improve global productivity.
However,gross profit grew 4.7%,excluding charges,to$4.14bn in the fiscal year.Pricing and productivity"more than offset"total inflation,Heinz said.However,the group's gross profit margin declined 140 basis points to 35.5%,reflecting cost inflation,an unfavourable sales mix and the impact of recent acquisitions.
Sales grew 8.8%to$11.6bn.Gains were driven by double-digit growth in emerging markets,which generated a"record"21%of total sales.Heinz said it also witnesses"strong growth"in the company's top 15 brands and from its global ketchup business.
Looking to fiscal 2013,Heinz said it expects sales growth of"at least"4%and EPS growth of 5-8%.
CEO William Johnson said the group expects to continue to book double-digit growth in emerging markets as well as benefiting from"strong investments in our brands and businesses",the prior year's productivity initiatives and"effective"cost management.
