H.J. Heinz Corporation has announced that sales during the first quarter of 2015 fell by 11.5% to $2.48 billion versus Q1 in 2014. Despite an organic net revenue decline of 4.5% and an unfavorable currency impact of 7.0%, the Pittsburgh, Pennsylvania, USA-headquartered company reported the result reflected a “solid underlying business performance.”
This was not the case in the US frozen meals sector, however, where a double-digit decline was recorded. Among its frozen brands sold in retail markets are Ore-Ida potato products, Weight Watchers Smart Ones entrées, and T.G.I. Friday’s snacks,
In Europe, meanwhile, revenues were impacted by declines in the UK and in Italy.
“We continued to make strong progress on the transformation of our business during the first quarter of the year,” said Heinz CEO Bernardo Hees. “First quarter results were consistent with our expectations and we remain on track to deliver on our internal targets for the year. We are confident that our cost discipline and investment in our brands will continue to drive sustainable and profitable growth.”
The fall in organic net revenues primarily reflected a comparison with unusually high product shipments in the prior year period, as the company shipped safety stock to retailers ahead of the commencement of SAP implementation efforts in North America during the second quarter of 2014, as well as the ongoing impact of product rationalization. Ketchup and infant nutrition organic revenues grew by single digits globally, led by Venezuela and Russia, and the company’s soy sauce business in China grew by double digits.
