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Record Year For Heinz But Factory Closures Planned in Europe

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Record Year For Heinz But Factory Closures Planned in Europe

Record Year For Heinz But Factory Closures Planned in Europe
May 27
11:26 2011
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HJ Heinz has achieved record sales and net income of $10.7b and $990m respectively in its 2011 financial year, while completing key acquisitions in Brazil and China to accelerate its dynamic growth in emerging markets. The US-based food group increased sales by 2% and net income by 14.4%.

Emerging markets, which generated more than 16% of Heinz’s total sales in 2011, delivered 14.4% organic sales growth (12% reported). The company’s strong growth in emerging markets reflected record sales of: Heinz baby food in China, Complan and Glucon-D nutritional beverages in India, ABC soy and chili sauces in Indonesia, and Heinz Ketchup and baby food in Russia.

William. Johnson, chairman, president and chief executive of Heinz.

The company’s top 15 brands generated 3.8% organic sales growth (2.9% reported). Heinz global ketchup sales registered 3.8% organic growth (1.9% reported).

“Heinz delivered record sales, net income and cash flow in Fiscal 2011, fueled by accelerating growth in key emerging markets like China, India, Indonesia and Russia and value-enhancing innovation in our core portfolio of iconic brands,” says William. Johnson, chairman, president and chief executive of Heinz. “Through excellent execution of our long-term plan, Heinz enhanced its position as one of the best-performing global food companies while driving shareholder value and continued dividend growth.”

To support continued future growth, Heinz will invest approximately $160m on initiatives to increase its manufacturing efficiency and accelerate productivity on a global scale. The plan includes exiting five factories, including two in Europe, two in the US, and one in the Pacific, leaving Heinz with 76 factories globally.

In addition, Heinz will establish a European supply chain hub in The Netherlands to consolidate and centrally lead procurement, manufacturing, logistics and inventory control. Overall, Heinz will streamline its global workforce by approximately 800 to 1,000 positions.

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