Heinz reports decrease in Q2 net income

American food company HJ Heinz reported that its net income decreased 5.7% to $237m for the fiscal second quarter that ended 26 October 2011, compared with $251.4m in the corresponding period a year earlier.

Sales increased 8.3% to $2.83bn, compared with $2.61bn a year ago, due to acquisitions in emerging markets and increased global ketchup sales.

The company’s leading 15 brands witnessed 3% organic sales growth, led by Heinz brand products, Complan nutritional beverages in India, ABC soya and chilli sauces in Indonesia and TGI Friday’s frozen meals in the US.

In terms of segments, North American consumer business sales declined 1.1%, while sales in Europe and the Asia Pacific region rose by 5.8% and 11.6% respectively.

Sales in the rest of world soared 107.2% to $248m, with the Quero acquisition in Brazil boosting the segment sales by 76.6%.

Heinz chairman, president and CEO William Johnson said that, led by the company’s trio of growth engines – emerging markets, global ketchup and the top 15 brands – reported sales grew more than 8%.

"Overall, we saw a combination of continued strength in emerging markets, the UK and much of Europe, and mixed results in other developed markets, where consumer confidence fell to its lowest level in 30 years," Johnson added.