HJ HEINZ Co reported a higher-than-expected quarterly profit yesterday, the day after the ketchup maker said earnings would exceed Wall Street estimates, as it benefited from growth in emerging markets and improving results in the US and Australia.
The company also cited higher prices and a favourable tax rate.
Heinz said net income was $258 million, or 80 US cents per share, in the first quarter ended on July 29th, up from $226.1 million, or 70 cents per share, a year earlier.
Profit from continuing operations was 87 cents a share. On that basis, analysts had been expecting 81 cents. Sales declined 1.5 per cent to $2.79 billion, slightly below estimates.
Heinz said it was on track to deliver its previously announced forecast for fiscal 2013, which called for earnings of $3.52 to $3.62 per share. The company still expects organic sales, which reflect volume and price increases, to be up 4 per cent.
Heinz previewed its results during its annual shareholders meeting on Tuesday. Its shares rose to their highest level in more than 13 years. Shares were down 2.35 per cent at $56.06 in lunchtime trading. – (Reuters)
