American food company HJ Heinz has posted 22.1% increase in its net income for the second quarter of fiscal 2013 to $289.44m, up from $237m in the same period in 2012, due to growth in emerging markets, favorable tax rate, and strong performance of its leading brands.
Sales inched up 0.5% to $2.83bn, up from $2.81bn in the previous year, although foreign currency exchange rates hit sales by 2.4%.Organic sales, which exclude currency fluctuations, acquisitions and divestitures, grew 3.3%.
Emerging markets, which accounted for about 23% of the company's total sales, saw an organic sales growth of 13.2%.
The firm's leading 15 brands witnessed 4.6% organic sales growth, driven by brands such as Heinz, Quero, ABC, Classico, Golden Circle, Master and Ore-Ida. The global ketchup delivered organic sales growth of 5% due to strong performance in Brazil and the US.
Heinz chairman, president and CEO William R Johnson said that the company posted strong results, while investing in the businesses and brands to achieve growth.
"Notably, Heinz delivered its 30th consecutive quarter of organic sales growth, led by our trio of growth engines: Emerging Markets, Global Ketchup and the Company's Top 15 Brands," Johnson added.
For the six months ended 28 October 2012, sales decreased 0.5% to $5.62bn, organic sales increased 4%, while operating income grew 10.1% to $802m.
Heinz noted that it is on track to deliver its previously announced forecast for fiscal 2013, which includes earnings per share increase of 5% to 8%, and organic sales growth of 4%.