Heinz Reports Double-Digit EPS Growth To $0.90 From Continuing Operations; Reaffirms Previously Announced Fiscal 2013 Full-Year Sales And Profit Outlook

ABOUT HEINZ: H.J. Heinz Company, offering “Good Food Every Day”™ is one of the world’s leading marketers and producers of healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz provides superior quality, taste and nutrition for all eating occasions whether in the home, restaurants, the office or “on-the-go.” Heinz is a global family of leading branded products, including Heinz ^® Ketchup, sauces, soups, beans, pasta and infant foods (representing over one third of Heinz’s total sales), Ore-Ida ^® potato products, Weight Watchers ^® Smart Ones ^® entrées, T.G.I. Friday’s ^® snacks, and Plasmon infant nutrition. Heinz is famous for its iconic brands on six continents, showcased by Heinz ^® Ketchup, The World’s Favorite Ketchup ^®.

H.J. Heinz Company and Subsidiaries Consolidated Statements of Income
					Second Quarter Ended									Six Months Ended
(In Thousands, Except per Share Amounts)					October 28, 2012 FY 2013				October 26, 2011 FY 2012					October 28, 2012 FY 2013				October 26, 2011 FY 2012
Sales					$	2,827,210			$	2,813,964				$	5,618,434			$	5,646,562
Cost of products sold					1,813,801				1,846,345					3,603,037				3,695,311
Gross profit					1,013,409				967,619					2,015,397				1,951,251
Selling, general and administrative expenses					621,712				609,474					1,213,362				1,222,568
Operating income					391,697				358,145					802,035				728,683
Interest income					7,833				9,191					16,191				18,968
Interest expense					69,963				75,177					143,334				146,132
Other (expense)/income, net					(6,264		)		1,244					(3,998		)		(1,036		)
Income from continuing operations before income taxes					323,303				293,403					670,894				600,483
Provision for income taxes					31,037				52,999					92,624				124,505
Income from continuing operations					292,266				240,404					578,270				475,978
Loss from discontinued operations, net of tax					(678		)		(268		)			(22,004		)		(883		)
Net income					291,588				240,136					556,266				475,095
Less: Net income attributable to the noncontrolling interest					2,144				3,127					8,795				11,972
Net income attributable to H.J. Heinz Company					$	289,444			$	237,009				$	547,471			$	463,123
Income/(loss) per common share:
Diluted
Continuing operations attributable to H.J. Heinz Company common shareholders					$	0.90			$	0.73				$	1.76			$	1.43
Discontinued operations attributable to H.J. Heinz Company common shareholders					—				—					(0.07		)		—
Net income attributable to H.J. Heinz Company common shareholders					$	0.90			$	0.73				$	1.70			$	1.43
Average common shares outstanding - diluted					323,058				323,561					322,969				323,910
Basic
Continuing operations attributable to H.J. Heinz Company common shareholders					$	0.91			$	0.74				$	1.78			$	1.44
Discontinued operations attributable to H.J. Heinz Company common shareholders					—				—					(0.07		)		—
Net income attributable to H.J. Heinz Company common shareholders					$	0.90			$	0.74				$	1.71			$	1.44
Average common shares outstanding - basic					320,492				320,876					320,415				321,158
Cash dividends per share					$	0.515			$	0.48				$	1.03			$	0.96
Amounts attributable to H.J. Heinz Company common shareholders:
Income from continuing operations, net of tax					$	290,122			$	237,277				$	569,475			$	464,006
Loss from discontinued operations, net of tax					(678		)		(268		)			(22,004		)		(883		)
Net income					$	289,444			$	237,009				$	547,471			$	463,123
(Totals may not add due to rounding)

H.J. Heinz Company and Subsidiaries Segment Data
					Second Quarter Ended									Six Months Ended
(Amounts in thousands)					October 28, 2012 FY 2013				October 26, 2011 FY 2012					October 28, 2012 FY 2013				October 26, 2011 FY 2012
Net external sales:
North American Consumer Products					$	794,957			$	794,271				$	1,553,809			$	1,568,892
Europe					808,427				844,187					1,586,343				1,682,019
Asia/Pacific					606,283				592,825					1,264,216				1,263,591
U.S. Foodservice					348,028				334,436					663,374				642,403
Rest of World					269,515				248,245					550,692				489,657
Consolidated Totals					$	2,827,210			$	2,813,964				$	5,618,434			$	5,646,562
Operating income (loss):
North American Consumer Products					$	190,341			$	201,927				$	373,772			$	392,705
Europe					140,398				144,470					277,592				281,909
Asia/Pacific					49,784				39,989					122,613				101,234
U.S. Foodservice					44,223				34,886					80,873				67,417
Rest of World					27,094				32,119					58,107				64,415
Other:
Non-Operating					(60,143		)		(57,929		)			(110,922		)		(101,169		)
Productivity initiatives (a)					—				(37,317		)			—				(77,828		)
Consolidated Totals					$	391,697			$	358,145				$	802,035			$	728,683
The company's revenues are generated via the sale of products in the following categories:
Ketchup and Sauces					$	1,315,116			$	1,268,332				$	2,634,416			$	2,578,812
Meals and Snacks					1,072,892				1,090,462					2,043,544				2,081,912
Infant/Nutrition					285,254				301,508					581,972				623,622
Other					153,948				153,662					358,502				362,216
Total					$	2,827,210			$	2,813,964				$	5,618,434			$	5,646,562

(a) Includes costs in Fiscal 2012 associated with targeted workforce reductions, asset write-offs associated with factory closures and other implementation costs in order to increase manufacturing effectiveness and accelerate productivity on a global scale. Other implementation costs primarily include professional fees and relocation costs for the establishment of a European supply chain hub in the Netherlands.

H.J. Heinz Company and Subsidiaries

Non-GAAP Performance Ratios

The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes that certain non-GAAP performance measures and ratios, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The following table provides the calculation of the non-GAAP performance ratios discussed in the Company's press release dated November 20, 2012:

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