American food company HJ Heinz has reported that its net income for the fiscal first quarter ended 29 July 2012 increased 14% to $258.02m, up from $226.11m in 2011, driven by growth in the emerging markets, and strong results in the US and Australia.
Sales decreased 1.5% to $2.79bn, compared with $2.83bn a year ago, due to unfavourable effect of foreign currency exchange rates, while organic sales - which represent volume and price increases, increased 4.8%.
Emerging Markets represented about 26% of total company sales and reported an organic sales growth of 19.3%.
The company's leading 15 brands witnessed 5.9% organic sales growth, led by brands such as Quero, Maste, Golden Circle, ABC, Weight Watchers Smart Ones, Heinz and Ore-Ida, while global ketchup delivered organic sales growth of 3.7%.
Heinz chairman, president and CEO William R Johnson said that Heinz posted strong results, despite the challenging economic environment, higher commodity costs and the impact of foreign currency.
"Heinz is off to a good start in Fiscal 2013, led by our trio of growth engines - Emerging Markets, Global Ketchup and our Top 15 Brands," Johnson added.
The company noted that it is on track to deliver its previously announced forecast for fiscal 2013, which includes earnings of $3.52 to $3.62 per share and organic sales growth of 4%.
