US food giant Heinz has reported a 10%increase in first-quarter profits on the back of continued growth in emerging markets,which now account for a record share of turnover.
Heinz booked a 9.5%gain in net income from continuing operations to US$279m,excluding the impact of a productivity programme on its results a year ago,for the quarter to 29 July.
The ketchup maker said sales in emerging markets increased by 19.3%on an organic basis,pointing to growth in Indonesia,India and Brazil.Emerging markets account for 26%of revenues,Heinz said.
It cited"improved results"in the US,although operating income from its North America business fell year-on-year.Heinz also saw its operating income in Australia double after last year's productivity programme,which led to plants being closed,and after moves to cut the number of SKUs on sale.
On a reported basis,group operating income was up 10.7%at$410m.Excluding the impact the productivity programme had on profits last year,operating income was"virtually flat"amid the impact of the strong US dollar.
The"unfavourable"foreign exchange rates meant reported sales fell 1.5%to$279m,although on an organic basis,sales were up 4.8%.
