PITTSBURGH (AFX) - Food maker H.J. Heinz Co., awaiting the results of a bruising proxy fight with dissident investors, said Thursday its fiscal first-quarter profit rose 23 percent, bolstered by sales of its Weight Watchers, Smart Ones and other products.
The company best known for its namesake ketchup brand earned $194.1 million, or 58 cents per share, in the three months ended Aug. 2 compared with a profit of $157.3 million, or 45 cents per share, during the same period last year.
Revenue climbed 8 percent to $2.06 billion from $1.9 billion a year ago.
The results beat Wall Street expectations. Analysts polled by Thomson Financial said they forecast a profit of 54 cents on revenue of $2.05 billion.
William R. Johnson, Heinz's chief executive, said the results reflected the success of a growth plan introduced by the company in June.
'Fiscal 2007 is off to a strong start and Heinz remains on track to deliver 10 percent-plus growth in earnings per share for the full year,' he said in a statement.
The results come two weeks after a battle with a group of dissident shareholders led by billionaire Nelson Peltz culminated at Heinz's annual shareholder meeting.
The group had nominated five of its members to Heinz's 12-member board. Shareholders, concerned about Heinz's financial performance, appeared to have elected at least one dissident shareholder to the company's board.
The final tally is expected by mid-September.
Quarterly sales were helped by double-digit growth in the company's 10 core brands, including Weight Watchers, Smart Ones meals, Classico pasta sauces, Plasmon infant nutrition products and ABC soy and chili sauces, Heinz said. Net pricing improvements, acquisitions and favorable foreign exchange rates also aided sales.
Volume grew 5.1 percent over the quarter, driven by higher consumption and new product introductions, the company said.
Heinz also makes Ore-Ida frozen potatoes and Lea & Perrins sauces, among other products.
Its shares fell 5 cents to $41.93 in morning trading on the New York Stock Exchange. They are near the upper end of their 52-week range of $33.42 to $44.15.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.