US infant formula market Mead Johnson has booked an increase in third-quarter sales and upped its sales forecast for the full year.
In the three months to the end of September, earnings were up 15.2% to US$161.6m. The increase was driven primarily by strong volume growth in China and Hong Kong.
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EBIT totalled $238.7m, up from $183.2m in the prior-year quarter. The improvement was driven by higher sales and improved gross margin offset in part by continued investments in advertising and promotion, along with an administrative penalty assessed in China.
Sales climbed 14% to of $1.05bn. Constant dollar sales grew 21% in the firm’s Asia/Latin America segment and 2% the North America/Europe division.
The company raised its forecast for the full year. It now expects earnings of $3.30 to $3.37 per share before one-time items, on sales growth of 9-10%. It previously forecast $3.22 to $3.30 per share on sales growth of around 8%.
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By GlobalDataClick here to view the full earnings release.
