Infant nutrition group Mead Johnson has lowered its full-year sales and earnings outlook despite noting progress has been made on lifting its sales trajectory in China. 

Reporting its third-quarter results, Mead Johnson said it now anticipates full-year net sales of 6% to 7% below the prior year on a reported basis and 2% to 3% below the prior year on a constant dollar basis. The company also revised its forecast for annual earnings per share to $2.80 to $2.87 due to lower sales. 

“We are operating in a challenging global environment and it is now clear that our growth will occur more slowly than we had planned. In this environment, we have chosen to revise our full-year guidance for both top and bottom line numbers,” CEO Kasper Jakobsen said. 

However, Jakobsen noted: “We continue to make progress against our global plan. Most critically, we have made substantial progress in China.”

The company, which has seen revenue in China hit by regulatory changes and a rapid channel shift, said it has gained momentum behind new products in the country, where sales have stabilised. 

Total net sales were 4% lower than last year falling to US$937.5m. However, the decrease was due to currency exchange. Revenue was in-line with last year on a constant-dollar basis. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Lower sales did impact the company’s EBIT. Operating profit fell to $228.2m versus $239.2m despite a slight improvement in operating margin, which increased to 24% of sales up from 23%. 

Net earnings in the three months to 30 September totalled $148.6m compared to $154.6m.