Infant formula supplier Mead Johnson has raised its forecasts for annual sales and underlying earnings, sending shares in the US group climbing today (24 April).
“We now anticipate constant dollar sales growth of approximately eight per cent for the full year 2014, up from seven per cent in our prior guidance, on expected stronger revenue momentum,” Mead Johnson CEO Kasper Jakobsen as he reported the Enfamil group’s first-quarter results.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Jakobsen said Mead Johnson had generated “record” sales and earnings in the quarter. “Sales growth was strong across all segments, including within our two largest markets. With innovations launched last year and increased investment in demand creation, we continued to see market share gains in all three segments. We invested appropriately to support future growth, while delivering 16 percent growth in earnings per share on a non-GAAP basis.”
Mead Johnson also predicted its non-GAAP earnings per share would hit US$3.60-3.72, up from its earlier forecast of $3.50 to $3.62.
Non-GAAP net earnings per diluted share were $1.02 for the quarter to 31 March, up from $0.88 a year earlier. Net earnings increased 9.4% to $207.8m. EBIT rose 6.7% to $291.2m.
First-quarter sales were $1.11bn 7% higher than a year ago. Sales were up 11% on a constant dollar basis.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataShares in Mead Johnson were up 4.08% at $87.71 at 12:55 ET.
