Financial Data and Key Metrics Changes - Total organic sales increased by 2% in Q2 2025, primarily driven by volume growth, with volume growth of more than 3% in the Consumer segment [6][28] - Adjusted operating income increased by 10%, with a 11% increase when excluding currency impacts [32] - Adjusted earnings per share for Q2 2025 was $0.69, comparable to the previous year [35] Business Line Data and Key Metrics Changes - Consumer segment organic sales increased by 3%, driven by volume and mix, with volume growth of 4% in The Americas [28][29] - Flavor Solutions segment organic sales were flat, with a 1% contribution from price offset by a 1% decline in volume and mix [30] - In The Americas, Flavor Solutions organic sales increased by 1%, reflecting a 2% price contribution, partially offset by a 1% decline in volume [30] Market Data and Key Metrics Changes - In EMEA, consumer organic sales grew by 3%, driven by a 2% increase in volume and a 1% increase in price due to commodity costs [29] - Asia Pacific region saw a 4% increase in consumer organic sales, driven by volume growth, reflecting a gradual recovery in China [29] - Flavor Solutions organic sales in EMEA decreased by 7%, impacted by lower volumes and prices due to geopolitical issues [31] Company Strategy and Development Direction - The company is focused on profitable volume-led growth by investing in brands, expanding distribution, driving innovation, and increasing operational efficiencies [4][5] - Plans to offset tariff costs through sourcing strategies and advanced analytics, while maintaining volume momentum [12][39] - Continued emphasis on health and wellness trends, with a focus on flavoring rather than competing for calories [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are adapting to economic pressures by shopping differently, but continue to spend on flavor [8] - The company expects to maintain its volume-led momentum and expand operating margins in 2025 despite ongoing challenges [46] - The outlook for 2025 includes maintaining net sales and adjusted operating profit guidance, with organic net sales growth expected to range between 1% to 3% [40][41] Other Important Information - The company is experiencing elevated cost pressures due to global trade uncertainties, impacting gross margins [31][40] - Cash flow from operations was $161 million, a decrease from $302 million in the previous year, driven by higher cash used due to working capital timing [36] - The company is committed to maintaining a strong balance sheet while funding growth investments and returning cash to shareholders [36] Q&A Session Summary Question: What surprised you about the second quarter results? - Management noted that the consumer business performed well, driven by volume across core categories, and they outperformed expectations in flavor solutions despite tough conditions [50][53] Question: Can you elaborate on tariff mitigation actions? - The majority of mitigation actions are driven by sourcing and CCI, with targeted pricing as a residual approach [59][60] Question: Can you provide more detail on gross tariff exposure? - The gross tariff exposure is approximately $90 million, primarily related to raw materials that cannot be sourced domestically [69][72] Question: How does the company balance sourcing lower-cost options with maintaining quality? - The company emphasizes that there is no trade-off between quality and cost, maintaining high standards while finding cost-effective sourcing options [89][91] Question: What is the impact of the global trade environment on commodity costs? - The global trade environment has led to elevated pressure on certain commodities, impacting gross margins, and the company is mitigating this through SG&A initiatives [90][94]

分组1 - McCormick reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, with an earnings surprise of +6.15% [1] - The company posted revenues of $1.66 billion for the quarter ended May 2025, slightly missing the Zacks Consensus Estimate by 0.22%, compared to $1.64 billion in the same quarter last year [2] - Over the last four quarters, McCormick has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 3.4% since the beginning of the year, while the S&P 500 gained 3.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $1.71 billion, and for the current fiscal year, it is $3.02 on revenues of $6.81 billion [7] - The Zacks Industry Rank for Food - Miscellaneous is in the bottom 24% of over 250 Zacks industries, indicating potential challenges for McCormick's stock performance [8]

FOR IMMEDIATE RELEASE McCORMICK REPORTS STRONG SECOND QUARTER PERFORMANCE AND REAFFIRMS 2025 OUTLOOK HUNT VALLEY, Md., June 26, 2025 - McCormick & Company, Incorporated (NYSE:MKC), a global leader in flavor, today reported financial results for the second quarter ended May 31, 2025 and reaffirmed fiscal 2025 outlook. Chairman, President, and CEO's Remarks Brendan M. Foley, Chairman, President, and CEO, stated, "We are pleased with our strong results for the first half of the year, as we are managing in a dy ...

Financial Performance - Total McCormick's organic sales grew by 1.6%, driven by a 1.3% increase in volume and a 0.3% increase in price[24] - Consumer segment organic sales increased by 3.0%, with volume up by 3.3% and price down by 0.3%[28] - Flavor Solutions segment organic sales remained flat at 0.0%, with volume declining by 1.0% and price increasing by 1.0%[32] - Net sales reached $1,659.5 million, a 1.0% increase as reported, or 1.6% in constant currency[37] - Adjusted operating income was $258.6 million, a 9.7% increase as reported, or 11.0% in constant currency[37] - Adjusted earnings per share (EPS) remained flat at $0.69[44] Segment Performance - Consumer segment net sales were $930.6 million, a 2.9% increase as reported, or 3.0% in constant currency, with adjusted operating income of $163.6 million, up 9.6% as reported, or 9.8% in constant currency[40] - Flavor Solutions segment net sales were $728.9 million, a 1.3% decrease as reported, but flat at 0.0% in constant currency, with adjusted operating income of $95.0 million, up 9.8% as reported, or 12.9% in constant currency[40] Outlook - The company maintains its net sales growth outlook at 0% to 2%, or 1% to 3% in constant currency[56] - The company maintains its adjusted operating income increase outlook at 3% to 5%, or 4% to 6% in constant currency[56] - The company maintains its adjusted EPS outlook at $3.03 to $3.08, or a 3% to 5% increase, or 5% to 7% in constant currency[56]

Core Insights - McCormick & Company reported a 1% increase in net sales for Q2 2025, driven by volume growth, despite a 1% unfavorable impact from currency fluctuations [5][7][12] - The company reaffirmed its fiscal 2025 outlook, maintaining expectations for net sales, adjusted operating profit, and adjusted earnings per share [5][11][14] Financial Performance - Total net sales for Q2 2025 were $1.66 billion, compared to $1.64 billion in Q2 2024, with organic sales growth of 2% attributed to volume and product mix [5][7][36] - Operating income increased to $246 million in Q2 2025 from $234 million in the same period last year, with adjusted operating income rising to $259 million [5][9][36] - Earnings per share (EPS) for Q2 2025 was $0.65, down from $0.68 in Q2 2024, while adjusted EPS remained stable at $0.69 [10][36] Segment Performance - The Consumer segment net sales rose by 3% to $931 million, with organic sales also increasing by 3% [12][13] - The Flavor Solutions segment saw a 1% decline in net sales to $729 million, with organic sales remaining flat year-over-year [12][13] Cost Management and Outlook - The company is implementing plans to mitigate tariff-related costs and is focused on growth investments to expand operating margins [3][14] - McCormick's fiscal 2025 outlook anticipates net sales growth of 0% to 2%, with adjusted operating income growth of 3% to 5% [15][27] Strategic Initiatives - The Comprehensive Continuous Improvement (CCI) program is driving cost savings and operational efficiencies, contributing to improved margins [9][11] - The company is prioritizing investments in key categories to sustain strong volume trends and long-term profitable growth [11][14]

Group 1 - McCormick & Company is set to release its second-quarter earnings results on June 26, with analysts expecting earnings of 65 cents per share, a decrease from 69 cents per share in the same period last year [1] - The company projects quarterly revenue of $1.66 billion, slightly up from $1.64 billion a year earlier [1] - On June 24, McCormick declared a quarterly dividend of 45 cents per share [2] Group 2 - McCormick shares experienced a decline of 1.4%, closing at $73.64 [2] - JP Morgan analyst Ken Goldman maintained an Underweight rating but raised the price target from $66 to $69 [4] - TD Cowen analyst Robert Moskow upgraded the stock from Hold to Buy, increasing the price target from $86 to $90 [4] - Jefferies analyst Rob Dickerson also upgraded the stock from Hold to Buy, raising the price target from $85 to $91 [4] - Stifel analyst Matthew Smith maintained a Hold rating while boosting the price target from $75 to $85 [4] - Argus Research analyst John Staszak upgraded the stock from Hold to Buy with a price target of $88 [4]

Core Viewpoint - McCormick (MKC) is expected to report a quarterly earnings per share (EPS) of $0.65, indicating a decline of 5.8% year-over-year, while revenues are projected to increase by 1.2% to $1.66 billion [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 0.1% over the past 30 days, reflecting a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue and Sales Projections - Analysts project 'Net Sales- Flavor Solutions' to reach $746.82 million, representing a year-over-year increase of 1.1% [5]. - The consensus for 'Net Sales- Consumer' is estimated at $918.28 million, suggesting a year-over-year change of 1.5% [5]. Operating Income Forecasts - 'Operating income excluding special charges and transaction and integration expenses- Flavor Solutions' is forecasted to be $92.07 million, up from $86.60 million in the same quarter last year [6]. - For 'Operating income excluding special charges and transaction and integration expenses- Consumer', the estimate is $152.43 million, compared to $149.30 million reported in the same quarter of the previous year [7]. Stock Performance - Over the past month, McCormick shares have returned +2.7%, outperforming the Zacks S&P 500 composite's +0.5% change [8]. - Currently, MKC holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the overall market in the near future [8].

Core Insights - McCormick & Company is expected to report a revenue increase of 1.2% year-over-year for Q2 2025, with estimates at $1.7 billion [1][8] - However, the company anticipates a decline in earnings per share (EPS) by 5.8% to 65 cents, reflecting ongoing macroeconomic pressures [2][8] Revenue and Earnings Expectations - The Zacks Consensus Estimate for McCormick's revenues is $1.7 billion, indicating a 1.2% increase from the previous year [1][8] - The consensus for earnings per share has decreased to 65 cents, down from the prior year, indicating a 5.8% decline [2][8] Strategic Initiatives - McCormick's investments in innovation and distribution are yielding positive results, focusing on brand marketing, product innovation, and proprietary technology to capture market share [2] - The company is implementing cost-saving initiatives to fund future investments and drive operating margin expansion [2] Macroeconomic Challenges - McCormick is facing growing macroeconomic pressures, including rising consumer uncertainty and inflation, which are affecting consumer behavior, particularly among lower-income groups [3] - The foodservice segment is experiencing weaker volumes due to a challenging operating environment [3] Cost Pressures - The company is dealing with persistent cost inflation, which is expected to impact performance through 2025 [4] - Selling, general, and administrative (SG&A) expenses are rising due to increased investments in technology and marketing [4]

Company Overview - McCormick (MKC) is expected to report quarterly earnings of $0.65 per share, reflecting a year-over-year decline of 5.8% [3] - Revenues are anticipated to be $1.66 billion, which is a 1.2% increase from the previous year [3] Earnings Expectations - Wall Street anticipates a year-over-year decline in earnings despite higher revenues, indicating a focus on how actual results compare to estimates [1] - The consensus EPS estimate has been revised down by 0.11% over the last 30 days, suggesting a bearish sentiment among analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for McCormick is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.19%, indicating a challenging outlook for beating estimates [12] - The stock currently holds a Zacks Rank of 4 (Sell), complicating predictions for an earnings beat [12] Historical Performance - In the last reported quarter, McCormick was expected to post earnings of $0.64 per share but delivered only $0.60, resulting in a surprise of -6.25% [13] - Over the past four quarters, McCormick has beaten consensus EPS estimates three times [14] Industry Context - General Mills (GIS), a competitor in the Zacks Food - Miscellaneous industry, is expected to report earnings of $0.71 per share, reflecting a significant year-over-year decline of 29.7% [19] - General Mills has an Earnings ESP of 0.80% but also holds a Zacks Rank of 4 (Sell), making predictions for an earnings beat difficult [20]

Core Viewpoint - McCormick & Company, Incorporated (NYSE: MKC) is expected to report its Q2 '25 earnings on June 26th, with anticipation surrounding the results [1] Company Overview - McCormick is a long-term investment option, appealing to investors with a 5-10 year horizon [1] - The company is characterized by a portfolio that typically includes a mix of growth, value, and dividend-paying stocks, with a stronger focus on value [1] Investment Strategy - The investment approach emphasizes simplicity, suggesting that a diversified portfolio can enhance investment outcomes [1] - The company also engages in options trading occasionally, indicating a flexible investment strategy [1]