Heinz Q3 Profit Slips
H.J. Heinz has reported that for fiscal Q3 2013, although sales grew by 2% year-over-year to $2.93 billion during the quarter, net profit declined by 5% to $270 million ($0.83 per share).
The company says it would have reported a gain in profitability had it not been for the impact of discontinued operations, which affected EPS by $0.12. On average, analysts had been expecting sales of $2.99 billion and EPS of $0.90.
In spite of the bottom-line drop, certain segments in the company's business performed well. It characterized its emerging-markets segments as "the primary growth driver" as organic sales in the sector increased by nearly 18% on a year-over-year basis, led by Latin America, Indonesia, and China. During Q3, emerging markets were responsible for 23% of total sales. Global Ketchup delivered organic sales growth of 4.2%, driven by strong performance in Russia, Latin America, and Canada.
Heinz made headlines last week when it was announced that the company had entered into a buyout agreement with a consortium comprised of Warren Buffett's Berkshire Hathaway and 3G Capital.
The article Heinz Q3 Profit Slips originally appeared on Fool.com.Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway and H.J. Heinz Company. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.