US: China slowdown hits Mead Johnson Q3

By Michelle Russell | 26 October 2012

  • Net profit down 3%
  • EBIT drops 11.8%
  • Sales slip to $921.3m
Mead Johnson said it entered the third quarter with “lower market share as well as distributors carrying higher inventories in China”

Mead Johnson said it entered the third quarter with “lower market share as well as distributors carrying higher inventories in China”

US infant formula group Mead Johnson has booked an drop in third-quarter earnings, hurt by a slowdown in China.

In the three months to the end of September, the company earned US$140.4m, down 3% on the prior year period. EBIT fell 11.8% to $166.3m.

Sales slipped to $921.3m from $933.9m a year earlier, hurt by foreign exchange losses.

The company said that while it was "pleased with the strong growth" it delivered in most of its emerging markets during the quarter, that it entered the third quarter with "lower market share as well as distributors carrying higher inventories in China".

Sectors: Baby food, Emerging markets, Financials

Companies: Mead Johnson

View next/previous articles

Currently reading -

US: China slowdown hits Mead Johnson Q3

There are currently no comments on this article

Be the first to comment on this article

Related research

Nutraceuticals

The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Annual estimates and forecasts are provided for the period 2010 through 2018. A six-year historic analysis is also...

Baby Foods and Infant Formula

This report analyzes the worldwide markets for Baby Foods and Infant Formula in US$ Million by the following Product Segments: Infant Formula (Baby Milks/Baby Formulas), Baby Meals, Baby Cereals, Baby Juices/Drinks, and Baby Biscuits/Cookies....

Related articles

The week ahead: ABF H1s; Unilever, Hershey, Premier Q1s

A raft of companies report to the market next week, including UK-based food group Associated British Foods, which is set to unveil its half-year results. Data for the first quarter of 2013 will continue to come in, with Unilever, Hershey and Premier Foods plc among those set to publish numbers.

Quote, unquote: just-food's week in words

The industry's first-quarter results continued to pour in last week and two of France's leading retailers, Carrefour and Casino revealed sales figures that got analysts talking. Carrefour appeared pleased with its domestic performance, while Casino was encouraged by the results of recent pricing initiatives. Elsewhere, Tesco finally confirmed its plans to exit the US and revealed it had received and was pursuing interest in the business.

In the spotlight: Infant formula prices drive Chinese consumers overseas

Retailers are rationing the amount of infant formula consumers can buy in markets including Hong Kong, Australia and now the UK. The move has been prompted by the huge demand for infant formula in China, with consumers buying products overseas and shipping them home. While you might think that rationing comes in response to supply shortages, in actual fact it is more likely an attempt to protect the power to price the same product differently in different markets. Katy Askew reports.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page