US-based Mead Johnson Nutrition has reported that its net income increased by 48.1% to $132.3m for the fourth quarter ended 31 December 2012, compared to $89.3m for the same period in 2011.
The company's net sales increased by 7.65% to $981.1m, compared to $911.3m for the corresponding period in the last year.
For the full year, net earnings increased by 17.9% to $612.4m from $519m, while net sales rose by $3.9bn, compared to $3.67bn a year earlier.
Mead Johnson Nutrition CEO Stephen Golsby said that the Asia/Latin America segment delivered strong growth, while notably in China the company recovered additional market share in the fourth quarter, with distributors' inventory restored to normal levels by the end of the year.
"Tight management of general and administrative spending, coupled with further reductions in our effective tax rate, more than offset the impact of higher commodity costs and helped to fund continued increases in demand-generation investments to drive longer-term growth," Golsby said.
The company expects non-GAAP EPS to be in the range of $3.22 to $3.30, up from the $3.08 per share in 2012. Key assumptions underlying non-GAAP guidance include an expected sales increase of 6% to 7% excluding the effect of foreign exchange.
Mead Johnson develops, manufactures, markets and distributes more than 70 products in over 50 markets across the world.