Mead Johnson Updates 2015 Financial Guidance

GLENVIEW, Ill.--(BUSINESS WIRE)--Jul. 14, 2015-- Mead Johnson Nutrition Company (NYSE: MJN) today announced that it is revising full-year 2015 financial guidance based on preliminary second quarter sales results. Results are preliminary at this time as the Company has not yet completed its quarter close processes. Final Q2 results will be announced on July 23, 2015.

(1) Constant dollar figures exclude the impact of changes in foreign currency exchange rates and Non-GAAP results exclude Specified Items. For a description of Specified Items, and a reconciliation of non-GAAP to GAAP and constant dollar results, see the schedule titled “Supplemental Financial Information.”

“Though disappointed with our second quarter revenue performance, especially in China, we are gratified by the continued strong performance of our North America/Europe segment and by early indications that our China transition strategy is working” said Chief Executive Officer, Kasper Jakobsen. “Our line of fully imported products, launched in China during the quarter, contributed strongly to sales, even as we failed to entirely offset the slowdown in locally manufactured product. I am likewise encouraged by our strengthening performance in e-commerce. As our new initiatives will make an ever larger contribution to our business, I am confident that we will be recording sequential sales growth in China by the end of the year.”

The Company will provide further details during its earnings call scheduled for July 23, 2015.

The Company does not intend to update its guidance in the future through an interim disclosure such as this, in the absence of similar circumstances, and investors should not expect the Company to provide such interim updates to its guidance.

Conference Call Scheduled

Mead Johnson will host a conference call to discuss the second quarter, first-half results and updated guidance on July 23, 2015 at 8:30 a.m. CDT. The call will be broadcast over the Internet at Conference call and replay information is available on our website and in the Company's press release dated July 1, 2015.

Forward-Looking Statements

Certain statements in this news release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the fact they use words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression. Such statements are likely to relate to, among other things, a discussion of goals, plans and projections regarding financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, capital expenditures, performance or results of current and anticipated products and the outcome of contingencies such as legal proceedings and financial results. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations that involve inherent risks, uncertainties and assumptions that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: (1) the ability to sustain brand strength, particularly the Enfa family of brands; (2) the effect on the company’s reputation of real or perceived quality issues; (3) the effect of regulatory restrictions related to the company’s products; (4) the adverse effect of commodity costs; (5) increased competition from branded, private label, store and economy-branded products; (6) the effect of an economic downturn on consumers’ purchasing behavior and customers’ ability to pay for product; (7) inventory reductions by customers; (8) the adverse effect of changes in foreign currency exchange rates; (9) the effect of changes in economic, political and social conditions in the markets where we operate; (10) changing consumer preferences; (11) the possibility of changes in the WIC(2) program, or participation in WIC; (12) legislative, regulatory or judicial action that may adversely affect the company’s ability to advertise its products, maintain product margins, or negatively impact the company’s reputation or result in fines or penalties that decrease earnings; and (13) the ability to develop and market new, innovative products. For additional information regarding these and other factors, see the company’s filings with the United States Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K, which filings are available upon request from the SEC or at The company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

About Mead Johnson

Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information, go to



(Dollars in millions)


This news release contains non-GAAP financial measures, which may include non-GAAP net sales and earnings and earnings per share information. The items included in GAAP measures, but excluded for the purpose of determining the above listed non-GAAP financial measures, include significant income/expenses not indicative of underlying operating results, including the related tax effect. The above listed non-GAAP measures represent an indication of the company’s underlying operating results and are intended to enhance an investor’s overall understanding of the company’s financial performance. In addition, this information is among the primary indicators the company uses as a basis for evaluating company performance, setting incentive compensation targets and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. Tables that reconcile non-GAAP to GAAP disclosure follow.
Net Sales, in millions   Q2 2015   Q2 2014   Reported   Dollar   Volume   Price/Mix   Exchange
Net Sales $ 1,032.4 $ 1,111.1 (7 %) (3 %) (5 %) 2 % (4 %)
EPS (earnings per dilutive share)   Q2 2015
GAAP $ 0.80
Specified Items (Note 1) $ (0.04 )
Non-GAAP $ 0.76

Note 1: Specified Items include other income of $0.02 and the tax benefit related to the China investigation accrual of $0.02 and other immaterial items.

Source: Mead Johnson Nutrition Company

Mead Johnson Nutrition Company
Kathy MacDonald, (847) 832-2182
Christopher Perille, (847) 832-2178