- Total sales growth of 3.5%, driven by organic growth of 5.8%*
- Organic sales of Heinz’s Top 15 brands grew 8.5%*
- Net income rose 21.9% to $277 million
- Operating free cash flow (cash flow from operations less capital expenditures net of proceeds from disposal of PP&E), increased 9% to $145 million
- Heinz reaffirms FY09 EPS guidance of $2.87 to $2.91, a growth rate of 9% to 11%
Heinz Chairman, President, and CEO, William R. Johnson said, “I am pleased with the Company’s second-quarter results particularly given the difficult economic environment. The Company drove strong organic sales growth with many of our leading brands pricing to mitigate substantially higher commodity costs.”
For the quarter, market prices for the Heinz commodity basket increased almost 15%, led by increased costs for packaging, potatoes, tomatoes, edible oils and meats.
The Ore-Ida Steam 'n mash potatoes, recently introduced in the United States are doing well. The quarterly report states:
"The introduction of Ore-Ida® Steam n’ Mash™ potatoes -- one of the Company’s most successful new product launches in recent years, combined with the timing of price increases, propelled double-digit sales growth for the Ore-Ida brand. Consumers embraced this easy-to-prepare comfort food that delivers great homemade taste, convenience and value."
