Source: www.ausfoodnews.com.au

Story by: Matthew Paish

US-based global food company Heinz has reported a 6% decrease in net income to US$226.1m for the three months to 27 July 2011.

The company’s results in emerging markets, including Asia, were stronger but results from developed Pacific markets were adversely affected by shrinking gross margins from house-branded competition within Australia, and the high Australian dollar impacting Australian-sourced exports.

Heinz’s first-quarter report says costs relating to its global restructuring programme, announced in May 2011, had affected profits. Nonetheless, excluding the charges from the supply chain and manufacturing revamp, net income increased to US$255m, compared to US$240.4m a year earlier, while earnings per share were US$0.78.

Heinz saw its global sales rise 14.9% to US$2.85bn, boosted by acquisitions last year of Brazilian condiments maker Quero and the Chinese soy sauce firm Foodstar. On an organic basis, total sales grew by 3.1%.

To read the full story, follow this link: http://www.ausfoodnews.com.au/2011/08/24/heinz-performs-poorly-in-australia-as-first-quarter-profits-drop.html