Coming off record results in its fiscal 2011, food maker H.J. Heinz is counting on growth in emerging markets to help it add to its bottom line.
For its fiscal 2011 ended April 27, Heinz's earnings grew 7%. Profit had fallen 1% in fiscal 2010. Revenue rose 2% to $10.7 billion in fiscal 2011.
Heinz's sales from emerging markets such as China, India, Indonesia and Russia accounted for 16% of total revenue in the latest fiscal year. That's up from 9% in fiscal 2005. The company expects that number to pick up to at least 20% in fiscal 2012 and 30% by fiscal 2016.
The company is target emerging markets due to their faster-growing economies. Heinz also seeks to take advantage of the rapidly-growing middle and above-middle classes in those nations, which would give it a much larger customer base.
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