Group 1 - McCormick reported diluted earnings per share (EPS) of 68 cents, exceeding the year-ago period and consensus expectations of 59 cents [1] - Net sales decreased by 1% to $1.64 billion, slightly surpassing expectations [1] - The company reaffirmed its fiscal 2024 guidance, projecting EPS of $2.76 to $2.81 and sales growth of 0% to 2% [9] Group 2 - The Europe, Middle East and Africa (EMEA) segment led consumer sales growth, with a 5% rise in consumer sales, while the Americas experienced a 2% decline [7] - EMEA growth was driven by a 4% increase in consumer volume during the quarter [7] - Overall consumer sales slowed by 1% year-over-year [7] Group 3 - Following the earnings release, McCormick shares rose by 4.7% to $70.92, marking a 3.7% gain since the beginning of the year [4][5] - CEO Brendan Foley highlighted that investments in the consumer segment resulted in substantial sequential volume improvement and anticipated continued momentum for the second half of the year [6]

Shares of flavorings and spices leader McCormick (MKC 4.82%) were up 4% as of 12:45 p.m. ET on Thursday, according to data provided by S&P Global Market Intelligence. McCormick continues to turn things around A price-to-sales (P/S) ratio of 2.8 means McCormick could prove to be a blue chip stock trading at a fair price. The company would be trading at a below-market valuation of 21 times earnings if it can return to the 13.5% net profit margins it averaged prior to the high inflation of 2022 and 2023. stret ...

Financial Data and Key Metrics Changes - In the second quarter, sales declined by 1% in constant currency, reflecting flat pricing and a 1% decline in volume and product mix [27] - The adjusted effective tax rate for the second quarter was 13.6%, compared to 22.3% in the previous year, with expectations for the full year to be around 22% [17][39] - Cash flow from operations was $302 million in the first half of 2024, down from $394 million in 2023, primarily due to increased incentive compensation payments [18] Business Line Data and Key Metrics Changes - Consumer sales in the Americas declined by 2% year-over-year, with volume growth in spices and seasonings offset by declines in prepared food categories [16] - In EMEA, constant currency Consumer sales increased by 4%, driven entirely by volume growth across product categories [16] - The Flavor Solutions segment experienced softness in volumes related to quick service restaurant (QSR) and packaged food customers, but improvements are expected in the second half of the year [27] Market Data and Key Metrics Changes - Consumers are exhibiting value-seeking behavior, with financial anxiety particularly high among mid- to low-income households in the United States due to inflation [7] - The company noted strong performance in the Americas for recipe mixes, particularly in Mexican product lines, contributing to volume growth [8] - In Asia Pacific, outside of China, strong volume growth was achieved, although performance in China was tempered as expected [4] Company Strategy and Development Direction - The company is focused on brand marketing investments, innovation, and expanding distribution to meet evolving consumer demands [5][11] - The management emphasized the importance of diversifying the customer base and collaborating with customers to support innovation plans [10] - The company plans to maintain its outlook for 2024, expecting top-line growth to be at the mid- to high-end of the guidance range [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the initiatives being implemented, despite a cautious view on the consumer environment [47] - The company expects to return to total volume growth during the second half of the year, absent any new macroeconomic headwinds [19] - Management highlighted that cooking at home remains elevated, benefiting the company's categories, particularly spices and seasonings [96] Other Important Information - The company is launching new products in the second half of the year, which are expected to drive top-line growth [13] - The transition in management was noted, with Mike Smith announcing his retirement and Marcos Gabriel stepping into the CFO role [33][34] Q&A Session Summary Question: What is the outlook for consumer trends in the second half? - Management remains cautious but confident in their initiatives, expecting sequential improvement in Q3 and Q4 [61][68] Question: Are there plans to diversify the Flavor Solutions customer base? - The company is continuously shaping its portfolio towards higher value-added products and technologies to diversify its customer base [71][72] Question: How does the company view pricing actions in the context of consumer financial pressures? - The company is implementing surgical pricing actions and believes they are positioned well to meet consumer needs despite financial pressures [87][95] Question: What are the expectations for gross margin improvements in the second half? - Management expects continued sequential improvement in gross margins, driven by volume growth and cost-saving initiatives [134]

Management is encouraged by its positive business momentum, which is expected to strengthen throughout the year. Management reaffirmed its fiscal 2024 outlook. Quarter in Detail McCormick's gross profit margin expanded 60 basis points. The upside can be attributed to cost savings from the Comprehensive Continuous Improvement (CCI) program. primarily due to the economic conditions in China, and declines in prepared food categories like Frozen and Asian in the Americas. Sales fell 2% year over year in the Ame ...

McCormick (MKC) reported $1.64 billion in revenue for the quarter ended May 2024, representing a year-overyear decline of 1%. EPS of $0.69 for the same period compares to $0.60 a year ago. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. View all Key Company Metrics for McCormick here>>> While investors scrutinize revenue and earnings ...

McCormick (MKC) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.60 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 16.95%. A quarter ago, it was expected that this spices and seasonings company would post earnings of $0.58 per share when it actually produced earnings of $0.63, delivering a surprise of 8.62%. McCormick, which belongs t ...

HUNT VALLEY, Md., June 27, 2024 - McCormick & Company, Incorporated (NYSE:MKC), a global leader in flavor, today reported financial results for the second quarter ended May 31, 2024 and reaffirmed fiscal 2024 outlook. · Earnings per share was $0.68 in the second quarter as compared to $0.56 in the year-ago period. Adjusted earnings per share was $0.69 compared to $0.60 in the year-ago period. Brendan M. Foley, President and CEO, stated, "We are pleased with our performance for the first half of the year, wh ...

Sales Performance - Consumer Segment - Americas Consumer net sales decreased by 1.6% in constant currency, with pricing investments of -1% and flat volume/mix[4,5] - EMEA Consumer net sales increased by 5%, or 3.9% in constant currency, driven by volume growth across categories and major markets[8,9] - APAC Consumer net sales decreased by 4.8%, or -0.9% in constant currency, with volume/mix declining due to the macro environment in China[12,13] Sales Performance - Flavor Solutions Segment - Americas Flavor Solutions net sales decreased by 0.2%, or -0.9% in constant currency, due to softness in QSR and packaged food volumes[18,19] - EMEA Flavor Solutions net sales decreased by 7.3%, or -8.2% in constant currency, including a 3% impact from the divestiture of the canning business[27,28] - APAC Flavor Solutions net sales increased by 5.9%, or 10.3% in constant currency, driven by customer promotions, limited-time offers, and new product innovation[31,32] Financial Highlights - The company's gross margin increased by 60 bps to 37.7% due to the Comprehensive Continuous Improvement (CCI) savings program[35] - Operating income increased by 6% to $234.1 million, while adjusted operating income was flat at $235.9 million[37] - Adjusted earnings per share increased by 15% to $0.69, driven by a decrease in the tax rate and an increase in unconsolidated income[44] Outlook - The company projects sales growth of -2% to 0%, or -1% to 1% in constant currency, for 2024[50] - Adjusted operating income is expected to increase by 3% to 5%, or 4% to 6% in constant currency[50] - Adjusted earnings per share are projected to be $2.80 to $2.85, representing a growth of 4% to 6%, or 5% to 7% in constant currency[50]

"Overall, we are confident in the sustained trajectory of our business, and in our ability to deliver on our 2024 outlook and long-term financial objectives. Our commitment is underpinned by our proven track record, our broad and advantaged global portfolio, our focus on high growth, profitable categories, our alignment with consumer trends, as well as our differentiated heat platform. Our business fundamentals are strong, and we expect to continue to deliver profitable growth and drive value for shareholde ...

Investor Relations: Faten Freiha -[email protected] Global Communications: Lori Robinson -[email protected] SOURCE McCormick & Company, Incorporated "Mike has been an integral leader for McCormick for more than three decades," said Brendan M. Foley, President and Chief Executive Officer (CEO) for McCormick. "Since he stepped into the role as CFO, sales grew at an industry leading pace of over 50% and we delivered significant shareholder value. His strategic leadership and focus on value creation have been i ...