- Heinz Q1 sales fall 11.5%
- EBITDA hit by foreign exchange impact
- Net income up on cost efficiencies
Heinz has reported a near-12% fall in sales for the first quarter of the year.
For the period ended March 29, Heinz posted revenues of US$2.48bn, down 11.5% on a year earlier.
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The ketchup maker cited the impact of foreign exchange but said net revenues fell 4.5% on an organic basis. Heinz said sales in the US were hit by a "double-digit decline" in frozen meals, where revenues in Europe were affected by "category declines in the UK and Italy".
The company said ongoing moves to cut its product ranges was a factor. It also pointed to "unusually high product shipments in the prior year period". Heinz had shipped "safety stock" to retailers ahead of the start of SAP implementation in North America in last year's second quarter.
Adjusted EBITDA fell 5.4% to $651.3m on the back of currency fluctuations and the introduction of SAP in North America.
On a reported basis, Heinz's net income increased from $198.3m in last year's first quarter to $279.2m, with depreciation charges falling by over a half.
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By GlobalDataHeinz CEO Bernando Hees said the results were "consistent with our expectations".
