Heinz profits rise to nearly €18m
According to accounts filed to the Companies’ Office, HJ Heinz Frozen and Chilled Foods Ltd recorded the profits rise after marginally increasing revenues from £96.3m to £97.4m in the 12 months to the end of Apr 29, 2012.
The filings show that the producer of iconic brands Heinz Ketchup and Heinz Baked Beanz increased operating profits from £11.6m to £12.2m.
The company is engaged in the sales, marketing, and distribution of all Heinz brands.
The performance of the Irish subsidiary, HJ Heinz Company (Ireland) Ltd, is consolidated into the results of HJ Heinz Frozen and Chilled Foods Ltd.
According to the directors’ report, “turnover has also shown a modest increase in the year with a combination of factors impacting in the year.
“Sales volume and mix, pricing and currency allied to volume sourcing for some Northern Ireland customers via their UK distribution centres and market promotional intensity all contributing to the movement.
“Despite commodity cost pressures, the average margin increased due to cost savings, pricing, and production/promotional mix.”
The directors state that “the commercial environment is expected to remain highly competitive moving forward. Continuing pressures on the overall scale of the Irish grocery market, retailer focus on their own-brand ranges, and aggressive competitor activity all continue to feature in the challenging economic, retail, and consumer market environment”.
HJ Heinz Frozen and Chilled Foods Ltd has its registered office in Dundalk and serves the Irish, UK, Swedish, and French markets. The directors state: “The UK market continued to represent over 90% of the company’s turnover.
“The frozen ready meals category as a whole continued to decline during 2011/12 while the company delivered a modest increase in turnover... Stronger gross margin improvement were achieved through a continuing strong focus on reducing operational costs and maximising returns from promotional activity and media spend.”
Staff numbers fell by seven to 269 in the year to the end of Apr 29, while staff costs rose from £12.3m to £13m. The group’s accumulated profits increased from £52.9m to £64m.
The company’s cost of sales dropped from £72.6m to €72.3m. Emoluments to directors totalled £757,000 compared to £679,000 the previous year.
