Financial Performance - Net sales for the three months ended February 29, 2024, increased to $1,602.7 million, up from $1,565.5 million in the same period last year, representing a growth of 2.3%[11] - Gross profit rose to $599.3 million, compared to $562.9 million a year ago, reflecting an increase of 6.5%[11] - Operating income improved to $233.5 million, up from $199.0 million, marking a growth of 17.3%[11] - Net income for the period was $166.0 million, compared to $139.1 million in the prior year, an increase of 19.4%[11] - Earnings per share (EPS) on a diluted basis increased to $0.62, up from $0.52, representing a growth of 19.2%[11] - The consumer segment reported net sales of $921.5 million for the three months ended February 29, 2024, compared to $909.5 million in the prior year, a growth of 1.9%[71] - The flavor solutions segment achieved net sales of $681.2 million for the three months ended February 29, 2024, up from $656.0 million in the same period of 2023, an increase of 3.8%[71] - Comprehensive income decreased to $163.0 million from $181.5 million year-over-year, primarily due to a significant drop in currency translation adjustments[13] Cash and Assets - Cash and cash equivalents at the end of the period were $178.0 million, compared to $356.8 million at the end of the same period last year, a decrease of 50.2%[19] - Total assets as of February 29, 2024, were $12,890.1 million, slightly up from $12,862.3 million at the end of the previous quarter[15] - The total fair value of financial assets as of February 29, 2024, was $326.8 million, with $178.0 million in cash and cash equivalents[51] - The carrying amount of long-term debt as of February 29, 2024, was $4,127.5 million, with a total fair value of $3,871.9 million[54] Liabilities and Equity - Total liabilities decreased to $7,632.7 million from $7,778.8 million, a reduction of 1.9%[15] - Shareholders' equity increased to $5,257.4 million, compared to $5,083.5 million, reflecting a growth of 3.4%[15] - Total current liabilities decreased to $2,973.8 million from $3,098.9 million, showing a reduction of 4.0%[16] - Retained earnings increased to $3,412.8 million from $3,249.7 million, reflecting a growth of 5.0%[21] Cash Flow and Operating Activities - The company reported net cash flow provided by operating activities of $138.4 million, up from $103.4 million in the same period last year, an increase of 33.9%[19] - The company reported a cash dividend of $0.42 per share for the three months ended February 29, 2024, up from $0.39 in the same period of 2023[11] Special Charges and Costs - Special charges for the three months ended February 29, 2024, totaled $4.2 million, a significant decrease from $27.8 million for the same period in 2023, representing an 85.1% reduction[34][35] - The Global Operating Effectiveness program incurred total costs of approximately $48 million as of November 30, 2023, with $2.1 million recognized in severance and related benefits during the three months ended February 29, 2024[36] - The initiative to consolidate manufacturing operations in the UK is expected to cost approximately $40 million, with $36 million incurred as of November 30, 2023, and $1.4 million recognized in the latest quarter[37][38] Foreign Currency and Derivatives - The notional amount of outstanding foreign currency exchange contracts as of February 29, 2024, was $953.7 million, down from $1,000.4 million as of November 30, 2023, indicating a 4.67% decrease[42] - Interest rate derivative contracts had a notional amount of $600.0 million as of February 29, 2024, with a fair value of $51.9 million in liabilities[45] - The company recorded a loss of $2.9 million on foreign exchange contracts for the three months ended February 29, 2024, compared to a gain of $1.0 million for the same period in 2023[46] Organizational Changes and Future Expectations - The company expects to adopt new accounting standards related to segment reporting and income tax disclosures by November 30, 2025, and November 30, 2026, respectively, which will enhance financial reporting transparency[30][31] - The company continues to evaluate changes to its organizational structure to improve competitiveness and reduce fixed costs, indicating ongoing strategic adjustments[33] Stock and Compensation - Stock-based compensation expense for the three months ended February 29, 2024, was $11.7 million, slightly down from $11.8 million in the same period last year[58] - The number of stock options outstanding at the end of the period was 5.6 million, with an average exercise price of $70.54[59] - The intrinsic value of all options outstanding as of February 29, 2024, was $38.4 million[59] Pension and Other Benefits - The net aggregate amount of pension and other postretirement benefits (income) for the three months ended February 29, 2024, was $(2.0) million[57] - The total contributions to pension plans in fiscal year 2023 were $9.2 million[56]

Financial Performance - McCormick reported a 3% increase in sales for Q1 2024 compared to the same period last year, with a 2% growth in constant currency[5]. - Operating income for Q1 2024 was $234 million, up from $199 million in Q1 2023, while adjusted operating income increased to $238 million, a 5% rise year-over-year[10]. - Earnings per share (EPS) rose to $0.62 in Q1 2024, compared to $0.52 in the prior year, reflecting a 19% increase; adjusted EPS was $0.63, up 7% from $0.59[11]. - Cash flow from operations for Q1 2024 was $138 million, an increase from $103 million in Q1 2023, driven by higher operating income and working capital improvements[12]. - Total net sales for the three months ended February 29, 2024, were $1,602.7 million, a 2.4% increase compared to $1,565.5 million in the same period of 2023[45]. - Adjusted operating income increased by 4.8% to $233.5 million, up from $199.0 million year-over-year[45]. - The company reported a net income of $166.0 million for the three months ended February 29, 2024, compared to $139.1 million in the same period of 2023[45]. - Net income for the three months ended February 29, 2024, was $166.0 million, representing a 19.3% increase compared to $139.1 million for the same period in 2023[47]. - Net cash flow provided by operating activities rose to $138.4 million, up from $103.4 million year-over-year, indicating a growth of 33.9%[47]. Sales Projections - For fiscal year 2024, McCormick expects sales to range from -2% to 0% compared to 2023, with a constant currency basis projection of -1% to 1%[14]. - Projected percentage change in net sales for the year ending November 30, 2024, is expected to be between -2% to 0%[34]. Earnings Projections - Operating income for 2024 is anticipated to grow by 8% to 10% from $963 million in 2023, with adjusted operating income expected to increase by 3% to 5%[15]. - McCormick projects 2024 EPS to be between $2.76 and $2.81, compared to $2.52 in 2023, with adjusted EPS expected to rise by 4% to 6%[16]. - Adjusted earnings per share for 2024 are projected to be between $2.80 to $2.85, compared to $2.70 for 2023[34]. Segment Performance - The Consumer segment saw a 1% sales increase in Q1 2024, with a 3% rise from pricing actions offset by a 2% decline in volume[18]. - The Flavor Solutions segment reported a 4% sales increase in Q1 2024, with a 2% increase in constant currency, driven by pricing actions and volume growth[20]. - The Consumer segment reported a total net sales increase of 1.3%, while the Flavor Solutions segment saw a 3.8% increase[32]. Profitability Metrics - Gross profit margin expanded by 140 basis points year-over-year, supported by favorable product mix and cost savings initiatives[9]. - The gross profit margin improved to 37.4% in Q1 2024, compared to 36.0% in Q1 2023[45]. Balance Sheet Highlights - Total assets increased to $12,890.1 million as of February 29, 2024, up from $12,862.3 million on November 30, 2023, reflecting a growth of 0.22%[46]. - Total current liabilities decreased to $2,973.8 million from $3,098.9 million, a reduction of 4.0%[46]. - Long-term debt remained stable at $3,329.1 million compared to $3,339.9 million, showing a slight decrease of 0.3%[46]. - Retained earnings increased to $3,412.8 million from $3,249.7 million, reflecting a growth of 5.0%[46]. Cash Management - Cash and cash equivalents at the end of the period were $178.0 million, an increase from $166.6 million at the beginning of the period, marking a growth of 6.8%[47]. - Dividends paid increased to $112.7 million from $104.6 million, representing a rise of 7.7% year-over-year[47]. - The effect of exchange rate changes on cash and cash equivalents resulted in an increase of $2.5 million during the quarter[47]. Cost Management Initiatives - The company is focused on productivity improvements and cost savings through its CCI and GOE programs[37].

Financial Performance - In 2023, McCormick achieved net sales of $6,662.2 million, representing a growth of 4.9% compared to 2022[131][147]. - Adjusted operating income for 2023 was $1,024.2 million, an increase of 11.6% from $917.4 million in 2022, with a constant currency increase of 12.0%[131]. - Diluted earnings per share for 2023 was $2.52, with adjusted diluted earnings per share increasing by 6.7% to $2.70[132][133]. - Gross profit for 2023 was $2,502.5 million, with a gross profit margin of 37.6%, up from 35.8% in 2022[148]. - Selling, general, and administrative (SG&A) expenses increased to $1,478.3 million, representing 22.2% of net sales, an increase of 80 basis points from the previous year[149][150]. - Operating income rose by $99.4 million, or 11.5%, from $863.6 million in 2022 to $963.0 million in 2023, with an operating income margin increase to 14.5%[156]. - The effective tax rate for 2024 is estimated to be 22%, slightly higher than 21.8% in 2023[144]. - The company projects adjusted earnings per share for the year ending November 30, 2024, to be between $2.80 and $2.85[205]. Segment Performance - The consumer segment contributed approximately 57% of consolidated net sales and 73% of consolidated operating income, while the flavor solutions segment contributed approximately 43% of consolidated net sales and 27% of consolidated operating income[13]. - Consumer segment net sales increased by 1.3% to $3,807.3 million in 2023, driven by a 6.5% increase from pricing actions[164]. - Flavor solutions segment net sales grew by 10.1% to $2,854.9 million in 2023, with pricing actions contributing 11.4% to the increase[169]. - Segment operating income for the consumer segment increased by $24.8 million, or 3.5%, to $735.5 million in 2023[168]. - Segment operating income for the flavor solutions segment increased by $82.0 million, or 39.7%, in 2023 compared to 2022, with a segment operating margin of 10.1%[173]. Customer and Market Dynamics - Sales to Wal-Mart Stores, Inc. accounted for approximately 12% of consolidated sales in 2023, while sales to PepsiCo, Inc. accounted for approximately 13% of consolidated sales in the same year[23]. - Approximately 25% of consolidated sales in 2023 came from two large customers, highlighting the importance of maintaining strong relationships with major clients[53]. - Approximately 39% of sales in fiscal year 2023 were from non-U.S. operations, indicating a significant international presence[39]. - The rise of private label products and competitive brands could negatively impact the company's market share and brand relevance[47]. Operational Challenges - The company faces risks from inflationary pressures affecting product costs and the ability to increase pricing to offset these costs[41]. - Ongoing geopolitical conflicts, including those between Russia and Ukraine and Israel and Hamas, may disrupt economic conditions and impact the company's operations[42]. - Fluctuations in raw material prices and availability, particularly for dairy products, pepper, and wheat, pose significant risks to the company's financial performance[54]. - Labor shortages and increased turnover rates may lead to higher operational costs, negatively impacting efficiency and overall business performance[61]. - The company faces potential adverse effects on operations due to supply chain disruptions, which could impair manufacturing and sales capabilities[57]. Strategic Initiatives - The company is implementing a global enterprise resource planning (ERP) system as part of its business transformation initiative[40]. - The company expects to drive revenue growth through brand marketing support, product innovation, and e-commerce expansion[40]. - The company is focused on improving productivity through its CCI and GOE programs to enhance operational efficiency[41]. - The company has adopted rigorous quality assurance and control procedures to safeguard its reputation for high-quality products[49]. Regulatory and Compliance Issues - The company’s operations are subject to various governmental regulations, impacting safety, production, and distribution of its products[30]. - The company is subject to extensive regulations regarding food products, which could increase compliance costs and impact financial results[102]. - Increased regulatory requirements related to environmental causes may result in increased compliance costs or disruptions in product manufacturing[86]. - Compliance with data privacy laws such as GDPR and CCPA is critical, as non-compliance could lead to significant financial penalties and operational challenges[104]. Financial Position and Debt - The company holds approximately $5.3 billion in goodwill and $3.0 billion in other indefinite-lived intangible assets, which are subject to impairment testing[70]. - As of November 30, 2023, the company had total outstanding variable rate debt of approximately $320 million, including $272 million of short-term borrowings, at a weighted-average interest rate of approximately 5.5%[87]. - The company's total indebtedness is approximately $4.4 billion as of November 30, 2023[90]. - The company relies on revolving credit facilities for funding working capital needs, and disruptions in these facilities could impact liquidity[91]. Environmental and Social Governance (ESG) - The company established science-based targets for Scope 1, 2, and 3 greenhouse gas emissions for the period 2025-2030[81]. - The company has established diversity, equity, and inclusion goals as part of its ESG initiatives[85]. - The company may incur additional costs to meet evolving consumer demands regarding sustainability and environmental impact[84]. Future Outlook - For 2024, McCormick expects net sales to decline by 2% to 0%, including a 1% unfavorable impact from foreign currency rates[140]. - Projected operating income for 2024 is expected to increase by 8% to 10%, with adjusted operating income anticipated to rise by 3% to 5%[142][143]. - The percentage change in net sales for 2024 is projected to be between -2% and 0%, with a constant currency change of -1% to 1%[210].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14920 McCORMICK & COMPANY, INCORPORATED (Exact name of registrant as specified in its charter) Maryland 52-0408290 (State or ot ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14920 McCORMICK & COMPANY, INCORPORATED (Exact name of registrant as specified in its charter) Maryland 52-0408290 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) For the quarterly period ended February 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14920 McCORMICK & COMPANY, INCORPORATED (Exact name of registrant as specified in its charter) Maryland 52-0408290 (State or other jurisdiction of incorporation or organization) 24 Schilling Road, Suite 1, Hunt Vall ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended November 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-14920 McCORMICK & COMPANY, INCORPORATED (Exact name of registrant as specified in its charter) | | Maryland | | 52-0408290 | | --- | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14920 McCORMICK & COMPANY, INCORPORATED (Exact name of registrant as specified in its charter) Maryland 52-0408290 (State or ot ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14920 McCORMICK & COMPANY, INCORPORATED (Exact name of registrant as specified in its charter) Maryland 52-0408290 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14920 McCORMICK & COMPANY, INCORPORATED (Exact name of registrant as specified in its charter) Maryland 52-0408290 (State or ...