US food giant Heinz is to report "strong" first-quarter results, its chief executive told shareholders today (28 August).
Heinz chairman, president and CEO Bill Johnson told the ketchup firm's AGM it would file a 10% increase in net income from continuing operations, excluding charges from its programme to boost productivity.
Johnson also said Heinz would book a 5% gain in organic sales when it announces its quarterly results tomorrow. He said Heinz was "off to a strong start" in its new financial year "despite the weak global economy".
In May, Heinz reported a 9.8% increase in full-year net income, excluding the productivity programme costs, to $1.09bn.
ugust 28, 2012 09:00 AM Eastern Daylight Time
Heinz Chairman Tells Shareholders the Company Expects to Report Strong First-Quarter Results with EPS of $0.87
PITTSBURGH--(BUSINESS WIRE)--At the H.J. Heinz Company (NYSE: HNZ) Annual Meeting of Shareholders today, Chairman, President and CEO William R. Johnson said the Company expects to report "strong first-quarter results," including:
"focused on driving the growth of Ketchup & Sauces, our crown jewel, our founder's legacy and our largest and fastest-growing core category."
Organic sales growth (volume plus price) of almost 5%, marking the Company's 29th consecutive quarter of organic top-line growth;
Net income growth of 10% from continuing operations and 15% on a constant currency basis, excluding productivity charges a year ago;
Higher earnings per share of $0.87, an increase of more than 10% from continuing operations, excluding productivity charges a year ago.
Mr. Johnson said the expected first-quarter results would reflect "dynamic growth in Emerging Markets as well as improved productivity, higher margins and a favorable tax rate."
He noted that Heinz achieved growth in earnings per share in the quarter "despite the headwinds of a still weak economy and adverse foreign currency trends that reduced EPS by around four cents."
"Overall, our strong first-quarter results put Heinz on track to deliver our previously announced outlook for Fiscal 2013," Mr. Johnson told shareholders at the meeting in Pittsburgh.
Heinz will report its first-quarter results on August 29.
Reconciliations of non-GAAP amounts are set forth in the attached financial tables. Results excluding charges for productivity initiatives in FY12 represent the Company's reported results adjusted to exclude charges for workforce reductions, factory closures and other implementation costs taken in Fiscal 2012 to accelerate growth. Organic sales are defined as volume plus price or total sales growth excluding the impact of foreign exchange and acquisitions and divestitures. Also, constant currency as used in this press release is defined as the reported amount adjusted for translation (the effect of changes in average foreign exchange rates between the current period and the corresponding prior year) and the impact of current-year foreign currency translation hedges.
EXCERPTS FROM MR. JOHNSON'S SPEECH TO SHAREHOLDERS
Mr. Johnson said Heinz delivered "excellent Fiscal 2012 results" and that the Company is "off to a strong start" in Fiscal 2013 "despite the weak global economy."
"In my opinion, few companies can match our track record of consistent growth and performance," he said. "Despite the lingering impact of the worst recession in decades and a lethargic recovery in the U.S. and Western Europe, Heinz has delivered a remarkable 28 consecutive quarters of organic sales growth through the end of Fiscal 2012."
Mr. Johnson said Heinz is "focused on driving the growth of Ketchup & Sauces, our crown jewel, our founder's legacy and our largest and fastest-growing core category."
He added: "Emerging Markets contributed almost one-quarter of our total Ketchup & Sauces revenue in Fiscal 2012 and I expect that to grow dramatically in the years to come."
