Mead Johnson Nutrition Company (NYSE:MJN) put out its Q3 earnings showing encouraging signs with a growth in earnings by 15%. The maker of nutritional products has seen increased sales figures across all the regions that it operates in despite some troubles that the company has recently come face to face with in China. Speaking on the occasion company Chief Executive, Kasper Jakobsen said that the strong double digit growth was because of the higher volumes and most notably these sales performed well in China and Hong Kong.
Based on this strong result, the company has also upped its earnings outlook for the year 2013 from an earlier $3.22-3.30 to a slightly higher $3.30-3.37 per share. The company reported a net profit of $161.6 million at 79 cents a share, this is a rise form figures of Q3 from last year which were at $140.3 at 69 cents a share. The earnings per share were hit by a Chinese Antitrust review which also led to a penalty. However despite all that share earnings for Mead Johnson still climbed up from 71 to 91 cents per share. The overall sales for the company registered a growth of around 15% to 1.05 billion USD beating analysts’ projections from Thomson Reuters who had predicted per share earnings of 80 cents and total revenue of $998.8 million.
The company also spent a greater amount on promotions and advertising, spending around 442.6 million USD for a 16% increase in costs for the same. That however seems to have paid off for the company as they have also registered a growth in the sales in Asia, Latin America as well as North America and Europe. The stock for Mead Johnson Co has seen a rise of around 25% since the beginning of this year.
