Dear Fellow Shareholder:
I am pleased to report that Heinz delivered record results in Fiscal 2012 as we successfully adapted to the changing and challenging consumer and economic environment while driving impressive growth in Ketchup & Sauces and Emerging Markets.
In the year ending April 29, 2012, Heinz:
- Grew sales 9% to a record $11.6 billion;
- Delivered record net income of $1.09 billion, excluding productivity charges, while reported net income was $923 million after charges;
- Generated strong operating free cash flow(1) of more than $1 billion for the third consecutive year, providing the fuel for continued top-tier dividend growth; and
- Generated a record 21% of sales from Emerging Markets.
Importantly, we increased the annualized common stock dividend for Fiscal 2013 by more than 7% to $2.06 per share. This increase reflects our solid results over the past seven years and continued confidence in our proven growth plan. It marks our ninth consecutive year of dividend growth, during which time we will have returned more than $5 billion in dividends to shareholders.
(1) Cash from operations less capital expenditures net of proceeds from disposal of PP&E