Skip to comments.Heinz Reports Double-Digit EPS Growth to $0.90 from Continuing Operations
Posted on 11/20/2012 4:17:36 PM PST by mdittmar
Fiscal 2013 Second-Quarter Results Continuing Operations, Excluding Fiscal 2012 Productivity Charges:
Reconciliations of non-GAAP amounts are set forth in the attached financial tables. Results excluding productivity chargesin Fiscal 2012 represent the Companys reported results adjusted to exclude charges for targeted workforce reductions, asset write-offs associated with factory closures and other implementation costs taken in Fiscal 2012 to, among other things, increase manufacturing effectiveness and accelerate growth. Organic sales are defined as volume plus price or total sales growth excluding the impact of foreign exchange and acquisitions and divestitures. Operating free cash flow is defined as cash from operations less capital expenditures net of proceeds from disposal of Property, Plant & Equipment. 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.
PITTSBURGH--(BUSINESS WIRE)--H.J. Heinz Company (NYSE:HNZ) today reported solid second-quarter results, with growth of 11.1% in earnings per share from continuing operations (excluding charges for productivity initiatives in Fiscal 2012). The results were fueled by dynamic growth in Emerging Markets, continued growth in Global Ketchup and the Company's Top 15 Brands, and a favorable tax rate. This enabled Heinz to significantly increase investment in marketing and global capabilities to drive future growth.
Heinz delivered solid results while making significant investments in our businesses and brands to drive growth, said Chairman, President and CEO William R. Johnson. Notably, Heinz delivered its 30th consecutive quarter of organic sales growth, led by our trio of growth engines: Emerging Markets, Global Ketchup and the Company's Top 15 Brands.
Second-Quarter Results - Continuing Operations
In the second quarter ended October 28, 2012, reported sales increased 0.5% to $2.83 billion, with unfavorable foreign currency impacting sales by 2.4%. Net pricing increased 1.9% and volume grew 1.4%. Divestitures reduced total sales by 0.4%.
Heinz delivered organic sales growth of 3.3%, led by Emerging Markets, which posted organic sales growth of 13.2% for the quarter (10.3% reported). Organic sales growth was again impacted by prior-year decisions to exit T.G.I. Friday's® frozen meals and downsize the Long Fong® frozen business in China. Emerging Markets represented 23% of total Company sales.
The Company's Top 15 Brands achieved organic sales growth of 4.6% (1.7% reported), led by Heinz®, Quero®, ABC®, Classico®, Golden Circle®, Master® and Ore-Ida® brands. Global Ketchup delivered organic sales growth of 5.0% (3.8% on a reported basis), driven by strong performance in the U.S., Brazil and Russia.
Gross profit of $1.01 billion grew 4.7% and gross margin increased 140 basis points to 35.8%. Excluding charges for productivity initiatives in Fiscal 2012, gross profit increased 1.8% and gross margin increased 40 basis points, despite a $22 million unfavorable impact from foreign exchange and higher commodity costs.
Marketing increased 13.4% on a constant currency basis (10.0% increase on a reported basis), reflecting a significant increase in the U.S. and continued support in Emerging Markets.
SG&A expenses (which excludes marketing) of $502 million increased 0.3% to 17.8% of sales, and increased 2.3% excluding charges for productivity initiatives in Fiscal 2012, reflecting strategic investments to drive growth primarily in Emerging Markets and global systems.
Operating income of $392 million grew 9.4%. Excluding charges for productivity initiatives in Fiscal 2012, operating income declined 1.0% due to a 1.5% unfavorable impact from foreign exchange.
Heinz benefited from a previously projected low tax rate for the quarter. The effective tax rate was 9.6% compared to 18.1% a year ago or 19.6% excluding charges for productivity initiatives in Fiscal 2012. The Company expects a full-year tax rate of around 20%.
Looks ripe for govt looting.
You're kidding, right?
Heinz is owned and operated by a woman who sleeps with John Kerry.
The real reason they are showing a profit is that more and more people can only afford "ketchup soup".
Heinz is publicly traded and she doesn’t show up in the list of significant owners:
What is her ownership mode?
Back in 2008 Teresa Heinz’s trust owned 4% of Heinz stock. More recently from wikipedia:
Heinz is the life estate beneficiary or outright beneficiary of her husband’s trusts, making her either extremely wealthy in her own name or powerful as a trustee of Heinz family wealth. Kerry is wealthy in his own right, though not to the same degree, since he became a trust fund beneficiary of his mother’s and Forbes family trusts. Kerry and Heinz signed a prenuptial agreement and have kept their premarital assets separate.
Heinz has declined to disclose her personal tax returns, citing family trusts and privacy. She is estimated to be worth between $750 million and $1.2 billion. According to her most recently released income tax of 2003, Kerry and Heinz paid an effective federal income tax rate of 12%.
Heinz and Kerry live an affluent life. They own a six-floor, $7 million townhome in Boston’s Beacon Hill neighborhood, a $9 million ocean-front home on Nantucket, a $5 million ski retreat in Idaho, a $4 million estate in Fox Chapel, Pennsylvania, near the Heinz family’s home base of Pittsburgh, and a $5 million home in the Georgetown neighborhood of Washington, D.C.[citation ne
"I'll drink to that!"
somehow that doesn’t sound like “owned and operated by”
You figure it out.
There’s a huge difference between being a beneficiary of a trust which has 4% ownership of a company and being the “owner operator” of that company.
Free Financial Advice: Hire some of the Bakers & Confectioners Union guys from Hostess to really juice your operating results.
Just in time for next year’s higher dividend and capital gains taxes. Gotta love it.
Frankenstiens wife just cooked the books like ubango did for the country