Mead Johnson today (23 July) posted a fall in half-year profits on the back of flat underlying sales as Asia weighed on the US-based infant formula group in the second quarter.
The company warned about its first-half sales performance earlier this month, when it lowered its forecast for annual revenue and earnings. It pinpointed issues in China, where "strong sales" of recently launched imported products failed to offset declines in products manufactured by the company in the country.
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Publishing its full results today, Mead Johnson said its net earnings for the six months to 30 June were US$370.3m, against $373.8m a year earlier. EBIT reached $514.4m, versus $536.1m the previous year.
Sales were $2.13bn, compared to $2.22bn a year ago due primarily to adverse foreign exchange. Constant dollar sales were in line with the first half of 2014.
In Asia, sales dropped 5%, with Mead Johnson citing lower market share in Thailand, increased promotions from rivals in China and a reduction in cross border trade from Hong Kong.
Sales in Latin American and from Mead Johnson's combined North America and Europe division rose.
