Heinz Acquires 80-Percent Stake In Brazil's Coniexpress, Reports Third Quarter Results

H.J. Heinz Company agreed to purchase an 80-percent stake in Coniexpress S.A. Industrias Alimenticias, manufacturer of the Quero brand of tomato sauces, paste, ketchup, condiments, and vegetables in Brazil. Aside from greatly expanding Heinz's operations in Latin America, the acquisition of the Quero business, which has annual sales of about $325 million, gives the company its first significant presence in Brazil. Heinz reported 1.5 percent growth in sales for its third quarter ended January 26, 2011, and a 20 percent increase in total net income. Earnings per share rose from continuing operations rose 1.2%, fueled by 14 percent sales growth in emerging markets led by China, India, Indonesia, and Russia, 3.8-percent organic growth in the top 15 brands, as well as sales and volume growth in the North America Consumer Products segment. Heinz has increased its full-year reported EPS guidance and now expects to sales growth of 2-3 percent for the year, revised down to reflect the labor stoppage in Venezuela and slow recovery in the U.S. foodservice industry.