Shares in Mead Johnson Nutrition fell today (29 July) after the US-based baby-food group posted a mixed set of second-quarter results.
The company booked net earnings attributable to shareholders of US$121.4m for the three months to the end of June, down from $134.5m a year earlier.
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EBIT tumbled by 20.7% to $172.9m due in part to higher commodity costs, increased spending on marketing and advertising and costs linked to the separation from former parent’s Bristol-Myers Squibb’s IT platform.
Second-quarter EBIT in 2009 benefited from an $11.9m gain on the sale of a non-strategic asset, Mead Johnson said.
Net sales, meanwhile, were up 6% at $764.2m thanks to price increases and foreign exchange. Sales volumes were flat.
CEO Stephen Golsby said he was “pleased” with the company’s performance during the second quarter.
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By GlobalData“The year continues to progress as expected with double-digit sales and earnings growth from emerging markets continuing to drive our results,” Golsby said.
“Our quarterly earnings performance is particularly rewarding given the investments we are making in geographic expansion and demand creation, as well as the higher costs as a stand-alone company and the impact of anticipated increases in dairy costs.”
Shares in Mead Johnson were down 1.1% at $52.40 at 11:42 ET.
