Core Insights - Holladay Distillery is expanding its production operations by constructing a new Rickhouse D to meet increased consumer demand for its bourbon products [1][2][3] Company Overview - Founded in 1856, Holladay Distillery is located in Weston, Missouri, and is known for producing bourbon steeped in history, including Holladay Soft Red Wheat and Ben Holladay Bourbon [5] - The distillery has a legacy of distilling that dates back over 160 years, with its first three rickhouses built in the early 1900s, 1930, and 1950 [1][5] Expansion Details - Rickhouse D will be constructed over eight to nine months in partnership with Al J. Mueller, a St. Joseph-based construction company [2] - The new rickhouse will have an 11,000-barrel capacity, which is designed to maintain consistency across the bourbon products [2] Product Offerings - Holladay Distillery produces several bourbon varieties, including its flagship brands, Holladay Soft Red Wheat and Ben Holladay Bourbon, as well as Rickhouse Proof and One Barrel Bourbons [4] - The distillery also offers the Ancient Cave Collection, which features bourbon aged in experimental barrels for a secondary finish [4] Historical Context - The distillery took a hiatus from bourbon production from 1985 to 2015, focusing on other spirits before resuming bourbon production in 2015 [3] - The original mash bill from 1856 was used for production, leading to the release of Ben Holladay Bourbon in 2022 after six years of aging [3]

Company Overview - McCormick & Company, Incorporated is a global leader in flavor with over $6.5 billion in annual sales across 150 countries and territories [2] - The company manufactures, markets, and distributes a variety of products including spices, seasoning mixes, and condiments to various sectors of the food industry [2] - Popular brands under McCormick include McCormick, French's, Frank's RedHot, and OLD BAY among others [2] Upcoming Event - McCormick will present at the Consumer Analyst Group of New York (CAGNY) Conference on February 18, 2025, at 4:00 p.m. ET [1] - The presentation will be led by Brendan Foley, Chairman, President & CEO, and Marcos Gabriel, Executive Vice President & CFO [1] - The event will be webcast live and a replay will be available on the McCormick website [1] Company Mission and Vision - McCormick is guided by principles that emphasize a commitment to a sustainable and flavorful future [3] - The company envisions a world united by flavor, where health, sustainability, and deliciousness coexist [3]

Investment Thesis - The analyst assigned a hold rating to McCormick & Co (NYSE: MKC) in October, citing concerns over headwinds from the Flavor Solutions segment despite the positive trend in food-at-home dining [1] Analyst's Background - The analyst is a passionate investor with a strong foundation in fundamental analysis and a focus on identifying undervalued companies with long-term growth potential [1] - The investment approach combines value investing principles with a focus on long-term growth, aiming to buy quality companies at a discount to their intrinsic value and hold them for the long term to benefit from compounding earnings and shareholder returns [1] Disclosure - The analyst has no stock, option, or derivative positions in any of the mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's own opinions and is not influenced by compensation or business relationships with the mentioned companies [2]

Financial Performance - In 2024, McCormick achieved net sales growth of 0.9% compared to 2023, with operating income increasing to $1,060.3 million from $963.0 million[142]. - Adjusted operating income for 2024 was $1,069.8 million, representing a 4.5% increase from $1,024.2 million in 2023[142]. - Diluted earnings per share rose to $2.92 in 2024, up from $2.52 in 2023, with adjusted diluted earnings per share increasing by 9.3% to $2.95[143]. - Net cash provided by operating activities was $921.9 million in 2024, with $504.1 million returned to shareholders through dividends and share repurchases[144]. - For 2025, McCormick expects net sales growth between 0% and 2%, with a 1% unfavorable impact from foreign currency rates[146]. - The company anticipates a gross profit margin improvement of 50 to 100 basis points from the 38.5% reported in 2024, driven by product mix changes and cost savings[147]. - Projected operating income for 2025 is expected to increase by 3% to 5% over the 2024 level, reflecting anticipated gross profit margin rise and SG&A cost savings[148]. - The effective tax rate for 2025 is estimated to be 22.0%, up from 20.5% in 2024[149]. - Income from unconsolidated operations is expected to decline by a mid-teen percentage rate in 2025 due to the strengthening of the U.S. dollar against the Mexican peso[150]. - McCormick's long-term growth objectives include increasing sales by 4% to 6% and adjusted earnings per share by 9% to 11% annually[137]. - Diluted earnings per share for 2024 was $2.92, an increase from $2.52 in 2023, with projections for 2025 ranging from $2.99 to $3.04[166]. - Net sales for 2024 were $6,723.7 million, reflecting a growth of 0.9% compared to $6,662.2 million in 2023, with organic sales growth of 0.8%[152]. - Gross profit increased by $88.5 million, or 3.5%, to $2,591.0 million in 2024, with a gross profit margin of 38.5%, up from 37.6% in 2023[153]. - Operating income rose by $97.3 million, or 10.1%, to $1,060.3 million in 2024, with an operating income margin of 15.8%, up from 14.5% in 2023[158]. - Selling, general & administrative (SG&A) expenses increased by $42.9 million to $1,521.2 million, representing 22.6% of net sales, up from 22.2% in 2023[154]. - Special charges decreased significantly from $61.2 million in 2023 to $9.5 million in 2024, positively impacting operating income[155]. - Income from consolidated operations before income taxes was $898.3 million in 2024, compared to $798.7 million in 2023, with an effective tax rate of 20.5%[160]. Market Segments - In 2024, the consumer segment contributed approximately 57% of consolidated net sales and 69% of consolidated operating income, while the flavor solutions segment contributed approximately 43% of consolidated net sales and 31% of consolidated operating income[13]. - Approximately two-thirds of the consumer segment sales are from spices, seasonings, condiments, and sauces, with McCormick being the global brand leader in the spices and seasoning category[14]. - Consumer segment net sales increased by 1.1% to $3,848.5 million in 2024, with segment operating income of $740.3 million[169]. - In the EMEA region, consumer sales increased by 7.3% in 2024, driven by favorable volume and product mix[171]. - Flavor solutions segment net sales increased by 0.7% in 2024 to $2,875.2 million compared to $2,854.9 million in 2023[174]. - Segment operating income for flavor solutions increased by $40.8 million, or 14.1%, in 2024, reaching $329.5 million[178]. - In the Americas region, flavor solutions sales grew by 1.4% in 2024, with organic growth of 1.5%[175]. - EMEA region flavor solutions sales decreased by 3.5% in 2024, with an organic decline of 3.6%[176]. - APAC region flavor solutions sales increased by 4.1% in 2024, with organic growth of 5.1%[177]. Customer Relationships - Sales to Wal-Mart Stores, Inc. accounted for approximately 12% of consolidated sales in 2024, while sales to PepsiCo, Inc. accounted for approximately 13%[23]. - Approximately 25% of consolidated sales in 2024 were generated from two large customers, highlighting the importance of maintaining strong relationships with major clients[54]. International Operations - In fiscal year 2024, approximately 39% of sales were from non-U.S. operations, indicating a significant international presence[39]. - Approximately 39% of the company's sales in fiscal year 2024 were generated from international markets, exposing it to currency fluctuations and regulatory risks[107]. Employee Relations - The company employs approximately 14,100 full-time employees worldwide as of November 30, 2024, with good employee relations and minimal work stoppages reported[32]. - The company is committed to fostering a diverse and inclusive workplace, which it believes contributes to business growth and innovation[31]. - Labor shortages and increased turnover rates may lead to higher operational costs, negatively impacting the company's efficiency and overall business[60]. Product Innovation and Strategy - The company is focused on product innovation and customer engagement to drive growth in highly competitive markets[29]. - The company has a diverse product offering, including clean-label, organic, natural, reduced sodium, gluten-free, and non-GMO products to meet increasing consumer demand[12]. - The company is committed to ongoing product innovation and expansion into new markets to drive future growth[40]. Cost Management and Risks - The company utilizes strategic raw material purchases and cost-saving programs to mitigate the impact of raw material price volatility[20]. - The company faces risks related to fluctuations in raw material prices, particularly for key ingredients such as dairy products, pepper, and tomato products, which could negatively impact financial results[55]. - The impact of inflationary pressures on product costs is a significant concern, with the company exploring pricing actions to offset these challenges[41]. - The company has experienced significantly elevated commodity and supply chain costs, with expectations of continued inflation in 2025 at a more modest rate compared to 2024[61]. - Attempts to offset cost pressures through price increases may not be successful, potentially leading to reduced sales volume[62]. - The food industry is highly competitive, and economic uncertainties may force the company to reduce product prices, adversely affecting profitability[64]. - Ongoing geopolitical conflicts, including those between Russia and Ukraine, may disrupt supply chains and affect overall economic conditions, impacting consumer demand[46]. - Ongoing geopolitical conflicts, including those between Russia and Ukraine, may disrupt the company's operations and increase costs due to trade restrictions[65]. - Climate change and related regulatory measures may negatively impact the availability and pricing of raw materials essential for the company's products[76]. - Increased compliance costs due to environmental regulations may disrupt operations and increase manufacturing and distribution costs[77]. - The company may face reputational risks if it fails to address stakeholder concerns regarding climate change and sustainability[78]. Financial Management and Debt - As of November 30, 2024, the company had total outstanding variable rate debt of approximately $449 million at a weighted-average interest rate of approximately 4.7%[85]. - The company's total outstanding fixed to variable interest rate swaps had a notional value of $600 million as of November 30, 2024[86]. - The company's total indebtedness as of November 30, 2024, was approximately $4.3 billion[88]. - The company relies on revolving credit facilities to fund a portion of its working capital needs and other general corporate purposes, including acquisitions[89]. - The company's credit ratings impact the cost and availability of future borrowings, with any downgrade potentially increasing borrowing costs[87]. - The company is exposed to credit risks from customers and counterparties, particularly in volatile credit markets[92]. Cybersecurity and Compliance - The company maintains an information security program to address cybersecurity threats, although risks continue to evolve[97]. - The company has adopted a risk-based, multilayered approach to cybersecurity, with significant resources allocated to protect data and manage threats[111]. - The company has not experienced any material cybersecurity threats or incidents to date, but acknowledges the potential for future risks[113]. - The company is subject to various data privacy laws, including the GDPR and CCPA, which impose compliance obligations and potential penalties for non-compliance[102]. - The company maintains a cybersecurity insurance policy, although it may not cover all potential claims related to cyber threats[117]. - The company has established an Executive Cybersecurity Steering Committee to enhance governance and compliance related to cybersecurity[121]. Cash Flow and Investments - Operating cash flow decreased to $921.9 million in 2024 from $1,237.3 million in 2023, primarily due to higher working capital needs[200]. - Net cash used in investing activities was $269.0 million in 2024, with capital expenditures expected to approximate $300 million in 2025[206]. - Net cash used in financing activities was $583.1 million in 2024, a decrease from $1,184.2 million in 2023, primarily due to changes in net borrowings and share repurchase activity[208]. - The cash conversion cycle improved to 36 days in 2024 from 40 days in 2023, driven by better inventory management[203]. - The company repaid $801.1 million of long-term debt in 2024, including $700.0 million of notes that matured in August 2024[208]. - The company issued $500.0 million of 4.95% notes due 2033, with net cash proceeds of $496.4 million[209]. - The share repurchase program activity shows 0.7 million shares repurchased in 2024 for a total of $53.1 million, compared to 0.5 million shares for $35.7 million in 2023[209]. - As of November 30, 2024, $448 million remains of a $600 million share repurchase program authorized in November 2019[209]. - Proceeds from exercised stock options were $17.5 million in 2024, $16.6 million in 2023, and $41.4 million in 2022[210]. - Total dividends paid in 2024 were $451.0 million, an increase from $418.5 million in 2023 and $396.7 million in 2022[210]. - Dividends paid per share increased to $1.68 in 2024, up 7.7% from $1.56 in 2023[210]. - The Board of Directors approved a 7.1% increase in the quarterly dividend from $0.42 to $0.45 per share in November 2024[210]. - The company repurchased $9.0 million of common stock in 2024 for employee tax withholding requirements[210]. - The percentage increase in dividends per share was 5.4% in 2023 and 8.8% in 2022[210].

Financial Data and Key Metrics - The company has adopted the organic sales measure, defined as the impact of volume and mix plus price, to simplify communication and align with investor feedback [5] Business Line Data and Key Metrics - No specific data provided in the content Market Data and Key Metrics - No specific data provided in the content Company Strategy and Industry Competition - The company has made changes to its release and slides to streamline and enhance communication, aligning with investor and analyst feedback [5] Management Commentary on Operating Environment and Future Outlook - The presentation contains projections and forward-looking statements, with actual results potentially differing materially from those projected [4] - The company undertakes no obligation to update or revise publicly any forward-looking statements, whether due to new information, future events, or other factors [4] Other Important Information - The company will refer to certain non-GAAP financial measures during the call, with reconciliations to GAAP results included in the press release and slides [3] - Certain percentages in the comments are rounded, and complete information can be found in the presentation [4] Q&A Session Summary - No Q&A session details provided in the content

Investment Opportunity - McCormick & Company, Incorporated (NYSE: MKC) is considered a long-term buy, with a buy call made at the bottom in October 2023 [1] Service Offering - Seeking Alpha's premier investing service offers a 33% discount, reducing the annual fee from $779 to $564, saving $215 [1] - Benefits of BAD BEAT Investing include understanding market dynamics, executing weekly trade ideas, access to 4 chat rooms, daily analyst summaries, basic options trading education, and extensive trading tools [1] Team Expertise - Quad 7 Capital, the pioneer of BAD BEAT Investing, consists of 7 analysts with diverse experience in business, policy, economics, mathematics, game theory, and sciences [1] - The team has a proven track record, including a notable February 2020 call to sell everything and go short, and has been 95% long and 5% short since May 2020 [1] Investment Strategy - BAD BEAT Investing focuses on short- and medium-term investments, income generation, special situations, and momentum trades [1] - The service aims to teach investors to become proficient traders through a detailed playbook, providing high-quality research with clear entry and exit targets [1]

For the quarter ended November 2024, McCormick (MKC) reported revenue of $1.8 billion, up 2.6% over the same period last year. EPS came in at $0.80, compared to $0.85 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.77 billion, representing a surprise of +1.79%. The company delivered an EPS surprise of +3.90%, with the consensus EPS estimate being $0.77.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

McCormick & Company, Incorporated (MKC) delivered solid fourth-quarter fiscal 2024 results, wherein the top and bottom lines came ahead of the Zacks Consensus Estimate, and sales increased year over year.The company’s strategic investments in key categories helped it fuel volume growth, expand margins and deliver solid earnings improvement in fiscal 2024. Looking into 2025, management remains positive about sustaining its solid momentum, driven by its growth strategies, brand strength and demand for flavor. ...

McCormick (MKC) came out with quarterly earnings of $0.80 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.90%. A quarter ago, it was expected that this spices and seasonings company would post earnings of $0.68 per share when it actually produced earnings of $0.83, delivering a surprise of 22.06%.Over the last four quarters ...

4th Quarter 2024 McCormick & Company, Inc. Business Update, Financial Results, and Outlook | January 23, 2025 The following slides accompany a January 23, 2025 earnings release conference call. This information should be read in conjunction with the press release issued on that date. FORWARD-LOOKING INFORMATION Certain information contained in this presentation, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges, ac ...