Heinz Profit Probably Topped Analysts' Estimates on Emerging Markets
Heinz Profit Probably Topped Estimates on Emerging Markets
Daniel Acker/Bloomberg
More than half of Heinz’s $10.5 billion in sales came from outside of North America in the latest fiscal year.
More than half of Heinz’s $10.5 billion in sales came from outside of North America in the latest fiscal year. Photographer: Daniel Acker/Bloomberg
H.J. Heinz Co., the world’s biggest ketchup maker, said it expects to report fiscal first-quarter profit of 75 cents a share, topping analysts’ projections as results were helped by sales in developing countries.
The preliminary figure for the period ended July 28 compares with the 73-cent average of analysts’ estimates compiled by Bloomberg. Sales excluding acquisitions and other items rose at least 3 percent, Heinz said in a statement today.
Sales from emerging markets including Russia and China will comprise 20 percent of revenue by fiscal 2013, up from 15 percent, Chief Executive Officer Bill Johnson told shareholders at the Heinz annual meeting in Pittsburgh today. Johnson has increased marketing spending to lift sales of ketchup globally.
“The shares can work somewhat higher given that their organic sales growth is above their peers,” said Dan Popowics, fund manager at Fifth Third Asset Management in Cincinnati, which has $18 billion under management including Heinz shares. “One of the attractions of the company is that they have a diverse portfolio and higher than normal exposure to Asia.”
More than half of Heinz’s $10.5 billion in sales came from outside North America in the latest fiscal year.
Heinz rose 15 cents to $46.24 at the 4 p.m. close of regular New York Stock Exchange composite trading. The shares have advanced 8.1 percent this year, compared with a 5.9 percent decline in the Standard & Poor’s 500 Index.
To contact the reporter on this story: Matthew Boyle in New York at mboyle20@bloomberg.net
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