US ketchup giant Heinz posted a 7.8% increase in quarterly profit today (31 May) as higher prices and increased marketing boosted sales.
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Net income climbed to US$181m, or $0.55 a share, from $167.9m, or $0.50 a share. Sales rose 0.6% to $2.41bn.
The company said that it introduced 100 new products last year and increased it advertising spend to boost sales in the US and Europe.
Heinz upped its profit forecast for the year to a range of $2.54 to $2.60.
“Fiscal 2007 was a great year for Heinz as our business units successfully executed the first year of the FY07/08 Superior Value and Growth Plan, meeting or exceeding our key financial targets. We greatly enhanced our focus on the consumer with a stronger spotlight on health and wellness, increased investment in marketing for future growth, greater R&D, and impressive productivity measures that helped offset $180m in commodity inflation,” said William R. Johnson, chairman, president and CEO.
“Our increased investment in growth this past year establishes a strong foundation for Fiscal 2008, giving us the confidence to increase our earnings outlook to a range of $2.54 to $2.60 and to raise the dividend by 8.6% on top of last year’s 16.7% increase.”
