Mead Johnson lowered its full-year sales and earnings outlook yesterday (14 July) after issues in China and other emerging markets hit the group in the second quarter.
Annual sales growth is expected to be in the range of 0-2% on a constant-currency basis, compared to previous estimates of 7%. Including foreign exchange, reported sales are expected to be 2%-4% below the prior year, versus previously forecast growth of 2%.
Go deeper with GlobalData
Full-year EPS guidance, including one-off items, is expected to be in the range of $3.56 to $3.71, versus prior guidance of $3.79 to $3.89.
Mead Johnson said preliminary second quarter sales were 3% below last year, or 7% lower when including currency exchange. Year-to-date sales were flat on a constant currency basis and down 4% on a reported basis.
The company pin-pointed issues in China, where "strong sales" of recently launched imported products failed to offset declines in products manufactured by Mead in the country. Hong Kong cross-border sales "stabilised" but remained below last year's levels.
See Also:
The company added that competitive pricing activity increased across emerging markets in Latin America and Asia due to slowing emerging market growth and dairy costs "approaching five-year lows".
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.
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 GlobalDataThe group will announce its finalised second quarter results on 23 July.
