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.
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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.
