Heinz's Second Quarter Profit Falls

PITTSBURGH, Pa. (TheStreet) -- Heinz(HNZ Quote) posted its second quarter earnings today and beat analysts' estimates.

Regardless, Heinz earnings still came in lower than earnings from the same time last year.

The food company, known for its ketchup, condiments and sauces among others, reported second quarter earnings of 73 cents per share on revenue of $2.7 billion. That was a fall from 87 cents per share on revenues of $2.6 billion reported the same time last year.

Analysts polled by Thomson Reuters had expected earnings of 70 cents on revenue of $2.6 billion.

Heinz's earnings fell 16%, but last year's earnings were higher because of one-off gains related to translation hedges on key currencies.

The company's sales growth was driven by its strength in the emerging markets, higher sales of its top 15 brands, and carry-over pricing from fiscal year 2009. Its emerging markets growth was led by pricing and higher sales of nutritional beverages in India and ketchup and baby food in Latin America and Russia.

Globally, infant nutrition led the company's sales growth.

Other growth factors include Heinz's December 2008 acquisition of Golden Circle in Australia, which expanded Heinz's health and wellness platform in beverages. Also, pricing actions taken last year in the company's North America consumer products division helped offset lower volume in its U.S. foodservice business that resulted from lower guest traffic in the restaurant sector.