US ketchup maker HJ Heinz today (24 November) posted lower quarterly profits as sales dropped in North America and Europe.
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Heinz said that earnings for the quarter to 28 October fell 16% to US$231.4m, down from $276.7m last year, when the company booked a gain from currency hedging.
The company said that rapid expansion in emerging markets – including ketchup and baby food in Latin America and Russia – helped offset weakness in the US and Europe, where consumer spending has been put under pressure by the recession, and the unfavourable impact of currency exchange.
Sales rose 2.5% to $2.67, led by double-digit growth in emerging markets and acquisitions, the company said.
The group added that it was confident of an improved sales performance in the remainder of the year, and said that it expects to earn $2.72-$2.82 from continuing operations, up from its previous guidance of $2.60-$2.70.
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