Alexa

Heinz 3Q profit remains flat as sales growth offsets impact of higher tax rate

Heinz 3Q profit remains flat as sales growth offsets impact of higher tax rate

Food producer H.J. Heinz Co. said Tuesday its third-quarter profit held virtually steady compared with a year ago as sales growth fueled by increased marketing and higher prices offset the impact of a steeper tax rate.
The Pittsburgh-based ketchup maker reported earnings of $219 million (euro147.24 million), or 68 cents per share, for the three months ended in January. A year earlier, the company posted per-share earnings 66 cents.
Sales jumped 14 percent to $2.61 billion (euro1.75 billion) from $2.30 billion (euro1.55 billion) last year.
The results beat Wall Street estimates. Analysts polled by Thomson Financial, on average, were looking for profit of 67 cents per share on sales of $2.58 billion (euro1.73 billion).
The company remains on track to achieve record full-year sales and per-share growth of 9 percent to 10 percent for the fiscal year, William R. Johnson, Heinz's CEO, said in a statement.
Heinz said product innovation and a 16 percent increase in marketing spending drove its strong quarterly sales results. Favorable foreign exchange contributed to 5.3 percent of the growth.
The company had a tax rate of 31.6 percent during the quarter compared with a rate of 26 percent a year earlier. Heinz anticipates a full-year tax rate of about 31 percent for the fiscal year ending April 30.
"Consumers across the globe are embracing our leading brands and innovative new products," Johnson said.
___
On the Net:
http://www.heinz.com


Updated : 2021-01-24 17:28 GMT+08:00