Dow Jones Newswires | Mead Johnson Nutrition Co.’s first-quarter profit rose 21 percent,
beating expectations, on strong sales from emerging markets as business
in developed markets remained stable.

“China business continues to be the largest contributor to our revenue
growth,” said Chief Executive Stephen Golsby. “It was just one of 10
major markets in Asia and Latin America to report double-digit gains,
demonstrating the broad-based success of our growth strategy.”

The maker of products such as Enfamil baby formula also raised the low end of its 2010 earnings target.

Mead Johnson separated from drug maker Bristol-Myers Squibb Co. last December in the fourth-largest U.S. split-off of the last two decades. The move came 10 months after the nutrition business’s initial public offering at $24 a share, and the stock has since more than doubled to above $50.

For the latest quarter, Mead Johnson posted a profit of $125.6 million, or 61 cents a share, up from $103.5 million, or 55 cents a share, a year earlier. Excluding split-off and other impacts, earnings rose to 65 cents from 57 cents.

Net sales rose 10 percent to $763.5 million and were up 7 percent at constant exchange rates.

Analysts polled by Thomson Reuters projected earnings of 60 cents on revenue of $743 million.

Gross margin widened slightly to 64.4 percent from 64.3 percent.

Sales from Asia and Latin America, which make up more than half of the company’s revenue, rose 17 percent. Sales in North America and Europe rose 1 percent.

Shares closed Wednesday at $50.42 and didn’t trade premarket. The stock is up 15 percent this year.