Overseas Growth Boosts Heinz's Profit |
| Wall Street Journal - Aug 30, 2012 |
H.J. Heinz Co. HNZ -0.53%plans a significant increase in marketing starting in the current quarter to keep sales humming strongly in emerging markets and to try to ignite growth in sluggish markets like the U.S.
Heinz executives said Wednesday the ketchup-maker will spend an additional $70 million in marketing this fiscal year to try to sell its products in what continues to be a difficult economic environment for the packaged-food industry as shoppers remain frugal with their grocery budgets.
"You are going to see Heinz spend in marketing like you've never seen us before," Margaret Nollen, Heinz's senior vice president of investor relations, said on a conference call with analysts.
The comments came as Heinz formally reported first-quarter results, which showed earnings up 14% from the prior year. Tuesday, Heinz reported preliminary figures that showed per-share earnings ahead of Wall Street estimates on 5% organic sales growth, which excludes currency effects, acquisitions and divestitures. But overall revenue fell 1.5% to $2.79 billion, as foreign-exchange rates dented top-line results.
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- Posted: 2012-08-30 13:23:11
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