Marketing Daily reports that H.J. Heinz Company and The J.M. Smucker Company each reported significant gains in sales, profits and earnings for the second quarter 2008.
Heinz's sales for the period grew 3.5 percent to $2.61 billion, driven by organic growth of 5.8 percent companywide and organic growth of 8.5 percent for the top 15 brands. Net income increased by 21 percent, to $277 million.
The J.M. Smucker Company, which completed its acquisition of Folger’s on Nov. 6, reported second quarter net sales were up 19 percent, to $843 million. Net income was up 3 percent, to $51.5 million.
Acquisitions of Europe's Best and Knott's Berry Farm contributed $35.8 million in net sales, while the exchange impact of the weakening Canadian dollar reduced net sales by $8.2 million. Excluding acquisitions and foreign exchange, net sales increased 15 percent.
Price increases were the primary driver of the net sales gains; however, volume gains in most product categories also contributed. Volume gainers included Smucker's fruit spreads, Pillsbury baking mixes and frostings, Hungry Jack potatoes and pancakes, Eagle Brand sweetened condensed milk, and Crisco shortening and oils. Volume declines were primarily limited to flour and industrial oils.
YTD, Smucker's net sales also jumped 19 percent to $843.1 million, and net income rose 3 percent, to $93.7 million.
