Dallas, Texas 02/03/2014 (FINANCIALSTRENDS) – Mead Johnson Nutrition CO (NYSE:MJN) has announced the results for the fourth quarter. The announcement revealed EPS of $0.78, which better expectations of $0.77 by $0.01. Revenues too upped estimates. MJN reported $1.06billion as against $1.05billion expected.
Mead Johnson Nutrition CO (NYSE:MJN) guidance for the financial year 2014, estimates EPS to be in the range of $3.50 to $3.62. The consensus estimate for the same period is at $3.67.
Strong performance in 2013
Mead Johnson Nutrition CO (NYSE:MJN), chief Executive Officer, Kasper Jakobsen reported that the company has been successful in the 2013 fiscal year due to an increase in its sales activities. The main areas of sales growth, for this infant formula major was in the emerging markets of Asia as well as Latin America. The CEO also reported that the share gains in Canada as well as in the US for the non-WIC business section were good enough to make for the below-levels performance in the category in the US markets.
Mead Johnson Nutrition CO (NYSE:MJN) is believed to have made better gross margin improvement because of the increased productivity as well as the higher prices. Besides, the demand creation investment was possible in this quarter and the benefit was the 10 percentile growth in earnings on non-GAAP basis on every share.
Jakobsen also noted that the investment in new products as well as initiatives focused on growth on promotional as well as advertising grew in the quarter past.
The US-based processed food and packaged goods company also manufactures formulas, nutritional products as well as distributes and markets these products to global consumers. Interestingly, much of the company’s new found growth is from the emerging market segments. Current, the highest rates of consumption is observed both in the populous region of Asia and Latin America, with a slew of products developed with value-additive nutrients.