Mead Johnson has booked an increase in full-year earnings, as sales from Asia and Latin America offset declines in Europe and North America.

The company said yesterday (1 February) its 2012 net earnings totalled US$604.5m, or $2.95 per share, up 19% from $508.5m, or $2.47 per share, for the previous year. EBIT for 2012 totalled $870m, up from $774.1m a year earlier.

The baby formula maker was able to book a strong increase in profits despite rising input costs, which put pressure on margins. Mead Johnson said higher dairy and other commodity costs drove full-year gross margins down 110 basis points.

Mead Johnson said full-year sales rose to $3.9bn, up 7% from 2011. Excluding currency exchange, sales in Latin America and Asia rose 12%, offsetting a 3% decline in North America and Europe.

Looking to 2013, Mead Johnson said it anticipates EPS of $3.20 to $3.28.

Shares in the US baby food maker jumped on the news, climbing 11.52% during the day to close at $76.

Click here for coverage of Mead Johnson’s conference call on the results.