Mead Johnson has reported a rise in H1 profit

Mead Johnson has reported a rise in H1 profit

US infant formula firm Mead Johnson has posted an increase in profits for the first half of the year despite earnings slightly dipping in the second quarter as a result of higher dairy costs.

For the half year ended 30 June, Mead Johnson reported net profit to US$373.8m from US$360m a for the same period a year earlier. EBIT was up from US$493.7m to US$508.4m.

Sales increased from US$2.09bn to US$2.2bn.

But pressure from increased dairy costs marginally impacted profit and EBIT in the second quarter.

Net income dropped from US$172m to US$171.4m. EBIT also fell from US$234.4m to US$229.6m

Sales, however, rose from US$1.05bn to US$1.1bn.

After the increase in revenues over the first half, Mead Johnson lifted its forecast for annual sales. CEO Kasper Jakobsen said the company expects constant-dollar sales to be up "no less than 9%", up from its previous prediction of around 8%.

For 2014, Mead Johnson expects GAAP EPS, excluding any further mark-to-market pension adjustments, to be $3.59 to $3.66 per diluted share, compared to the previously-reported range of $3.54 to $3.66 per diluted share.

Non-GAAP EPS, which excludes items like the pension charges, is expected to be in the range of $3.65 to $3.72 per diluted share, as compared to the previously reported range of $3.60 to $3.72 per diluted share.