Financial Performance - Net sales for the three months ended August 31, 2022, were $1,595.6 million, an increase of 3.4% compared to $1,549.4 million in the same period of 2021[11] - Gross profit for the nine months ended August 31, 2022, was $1,650.1 million, down 7.9% from $1,791.7 million in the prior year[11] - Operating income for the three months ended August 31, 2022, was $235.2 million, a decrease of 11.3% from $265.2 million in the same period of 2021[11] - Net income for the nine months ended August 31, 2022, was $496.3 million, down 11.0% from $557.9 million in the same period of 2021[11] - Earnings per share (diluted) for the three months ended August 31, 2022, were $0.82, compared to $0.79 in the same period of 2021, reflecting a 3.8% increase[11] - For the nine months ended August 31, 2022, net sales totaled $4,654.8 million, an increase from $4,587.6 million in the same period of 2021, reflecting a growth of 1.5%[87] - Operating income for the nine months ended August 31, 2022, was $599.3 million, down from $738.9 million in the same period of 2021, a decrease of 18.9%[88] Dividends and Shareholder Equity - Cash dividends declared per share for the nine months ended August 31, 2022, were $0.74, an increase from $0.68 in the same period of 2021[11] - Dividends paid during the three months ended August 31, 2022, totaled $99.2 million, an increase from $90.9 million in the same period of 2021[20] - The total shareholders' equity as of August 31, 2022, was $4,606.7 million, a slight decrease from $4,615.1 million at the end of May 2022[20] Assets and Liabilities - Total assets as of August 31, 2022, were $12,941.0 million, slightly up from $12,905.8 million as of November 30, 2021[15] - Total liabilities as of August 31, 2022, were $8,334.3 million, down from $8,480.3 million as of November 30, 2021[15] Cash Flow and Operating Activities - Net cash flow provided by operating activities for the nine months ended August 31, 2022, was $250.1 million, a decrease from $372.9 million in the same period of 2021[19] Special Charges and Expenses - Special charges for the three months ended August 31, 2022, amounted to $3.4 million, down from $5.8 million in the same period of 2021[32] - For the nine months ended August 31, 2022, McCormick recorded net special charges of $38.0 million, significantly higher than $20.6 million for the same period in 2021[33] - The company recognized $23.0 million in special charges related to the exit of its consumer business in Russia during the nine months ended August 31, 2022[33] - For the nine months ended August 31, 2022, the company recorded $12.5 million in severance and related benefits costs, $3.3 million in accelerated depreciation, and $2.6 million in third-party expenses[36] Income and Comprehensive Income - The company reported a comprehensive income of $335.7 million for the nine months ended August 31, 2022, compared to $595.8 million in the same period of 2021[13] - The company reported a comprehensive income of $88.0 million for the three months ended August 31, 2022, compared to $140.2 million in the same period of 2021[13] - McCormick's total comprehensive loss for the three months ended August 31, 2022, was $(136.4) million, compared to a loss of $(72.9) million in the same period of 2021[20] Segment Performance - The consumer segment generated net sales of $927.9 million for the three months ended August 31, 2022, compared to $921.9 million in the same period of 2021, indicating a slight increase[87] - The flavor solutions segment reported net sales of $667.7 million for the three months ended August 31, 2022, up from $627.5 million in the same period of 2021, representing a growth of 6.4%[87] - The Americas region accounted for $1,141.7 million in net sales for the three months ended August 31, 2022, compared to $1,084.5 million in the same period of 2021[88] Debt and Financing - A new $500 million revolving credit facility was entered into, with a current pricing of SOFR + 1.23%[44] - The company repaid $750 million in notes due in August 2022, with an interest rate of 2.70%[45] - The carrying amount of long-term debt as of August 31, 2022, was $3,925.4 million, with a total fair value of $3,675.1 million[61] Stock-Based Compensation - Stock-based compensation for the three months ended August 31, 2022, was $12.2 million, compared to $11.6 million in the same period of 2021[20] - Stock-based compensation expense for the three months ended August 31, 2022, was $12.2 million, compared to $11.6 million in 2021, while for the nine months, it was $49.1 million versus $54.2 million in 2021[67] - The intrinsic value of all options outstanding as of August 31, 2022, was $95.9 million, with $93.4 million for options currently exercisable; total intrinsic value of options exercised during the nine months was $40.2 million in 2022 compared to $7.3 million in 2021[68] Taxation - Income tax expense for the three months ended August 31, 2022, included $3.8 million of net discrete tax expense, primarily due to an $11.6 million tax expense related to the sale of a business[70] - For the nine months ended August 31, 2022, the income tax expense included $15.5 million of net discrete tax benefits, with $9.0 million associated with excess tax benefits from stock-based compensation[71] Foreign Currency and Hedging - The company recorded a gain of $3.6 million from foreign exchange contracts in the three months ended August 31, 2022[54] - For the three months ended August 31, 2022, the total gain from cash flow hedges was $4.6 million, compared to $1.5 million in the same period of 2021, reflecting a significant increase[55] - The company reported a tax effect of $4.9 million on cash flow hedges for the three months ended August 31, 2022, resulting in a net after-tax amount of $(14.6) million[80]

Financial Performance - Net sales for the three months ended May 31, 2022, were $1,536.8 million, a decrease of 1.8% compared to $1,556.7 million in the same period of 2021[11] - Gross profit for the six months ended May 31, 2022, was $1,083.4 million, down 9.2% from $1,192.1 million in the prior year[11] - Operating income for the three months ended May 31, 2022, was $157.2 million, a decline of 33.7% from $237.4 million in the same period of 2021[11] - Net income for the six months ended May 31, 2022, was $273.4 million, down 20.9% from $345.5 million in the same period of 2021[11] - Earnings per share (diluted) for the three months ended May 31, 2022, were $0.44, compared to $0.68 in the same period of 2021, reflecting a decrease of 35.3%[11] - Operating income for the six months ended May 31, 2022, was $364.1 million, compared to $473.7 million for the same period in 2021, reflecting a decrease of 23.1%[79] - Income from consolidated operations for the three months ended May 31, 2022, was $129.8 million, a decrease from $205.7 million in the same period of 2021, representing a decline of 37%[111] Cash Flow and Dividends - Cash and cash equivalents at the end of the period were $325.8 million, a decrease from $351.7 million at the beginning of the period[18] - The company declared dividends totaling $99.2 million during the six months ended May 31, 2022, consistent with the previous year[31] - Dividends paid increased to $198.2 million, or $0.37 per share, in the first six months of 2022, up from $181.6 million, or $0.34 per share, in the same period last year[168] - Net cash provided by operating activities for the six months ended May 31, 2022, was $154.4 million, down from $228.7 million in the same period of 2021[157] - Net cash used in investing activities for the six months ended May 31, 2022, was $89.2 million, significantly lower than $753.6 million in the same period of 2021[19] Assets and Liabilities - Total assets as of May 31, 2022, were $12,957.9 million, slightly up from $12,905.8 million as of November 30, 2021[15] - Total liabilities decreased to $8,342.8 million from $8,480.3 million as of November 30, 2021[15] - As of May 31, 2022, total shareholders' equity was $4,615.1 million, slightly down from $4,640.8 million as of May 31, 2021[20] Special Charges and Costs - The total special charges for the six months ended May 31, 2022, amounted to $34.6 million, primarily due to the exit of the consumer business in Russia and the transition of a manufacturing facility in EMEA[33] - McCormick recorded $22.2 million in special charges related to the exit of its consumer business in Russia, which included a non-cash impairment charge of $10.0 million for the Kamis brand[34] - Special charges for the three months ended May 31, 2022, totaled $15.1 million, compared to $13.7 million for the same period in 2021, with the consumer segment accounting for $10.7 million[41] Segment Performance - The consumer segment sells products under various brands including "McCormick", "French's", and "Frank's RedHot", while the flavor solutions segment serves food manufacturers and the foodservice industry[74] - Consumer segment net sales for the three months ended May 31, 2022, decreased by 8.4% to $866.1 million compared to $945.2 million in the same period of 2021[120] - Flavor solutions segment net sales for the three months ended May 31, 2022, were $670.7 million, a 9.7% increase compared to $611.5 million in the same period of 2021[128] Market Conditions and Outlook - The company expects net sales growth in 2022 to be between 3% to 5%, with an estimated 2% unfavorable impact from currency rates[89] - The gross profit margin for 2022 is projected to decline by 130 to 180 basis points from 39.5% in 2021, primarily due to inflationary pressures[90] - The company anticipates that volume and product mix will be negatively impacted by demand disruptions from COVID-related lockdowns in China and the conflict in Ukraine[89] Stock and Compensation - McCormick's stock-based compensation for the three months ended May 31, 2022, was $25.8 million, compared to $28.4 million for the same period in 2021[31] - The total intrinsic value of all options exercised during the six months ended May 31, 2022, was $38.2 million, significantly higher than $4.9 million in the same period of 2021[63] Organizational Changes - The company continues to evaluate changes to its organizational structure to reduce fixed costs and improve competitiveness[30] - Historical trends indicate that net sales and cash flow from operations are typically lower in the first half of the fiscal year and higher in the second half due to seasonal consumer purchasing patterns[25]

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 ...

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, 2021 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, 2021 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 Maryland 52-0408290 (State or other jurisdiction of incorporation or organization) 24 Schilling Road, Suite 1, Hunt Valle ...

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, 2021 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 ...

Financial Performance - Net sales for the three months ended February 28, 2021, increased to $1,481.5 million, up 22.2% from $1,212.0 million in the same period of 2020[11] - Gross profit rose to $577.5 million, representing a 23% increase compared to $469.9 million in the prior year[11] - Operating income improved to $236.3 million, a 21.6% increase from $194.2 million year-over-year[11] - Net income for the period was $161.8 million, up 11.5% from $144.7 million in the same quarter of 2020[11] - Earnings per share (diluted) increased to $0.60, compared to $0.54 in the previous year, reflecting an 11.1% growth[11] - The consumer segment generated net sales of $946.8 million, while the flavor solutions segment contributed $534.7 million, indicating strong performance across both segments[90] - Operating income for the same period was $236.3 million, compared to $194.2 million in 2020, reflecting an increase of 21.7%[11] - The company reported a net income of $161.8 million for the three months ended February 28, 2021, up from $144.7 million in the same period of 2020, an increase of 11.0%[13] - Operating income excluding special charges and transaction and integration expenses for the three months ended February 28, 2021, was $262.5 million, compared to $195.2 million for the same period in 2020, reflecting a 34.4% increase[90] Cash Flow and Assets - Cash and cash equivalents decreased to $256.1 million from $423.6 million at the end of the previous quarter[17] - Total assets increased to $12,685.1 million, up from $12,089.7 million as of November 30, 2020[16] - The company reported a net cash flow used in operating activities of $(32.2) million, compared to $44.8 million in the same period last year[17] - The company made an acquisition of businesses totaling $(706.6) million during the period, significantly impacting cash flow from investing activities[18] - Total current liabilities decreased to $2,423.7 million from $3,046.5 million, a reduction of 20.4%[16] - Long-term debt increased to $4,739.2 million from $3,753.8 million, an increase of 26.3%[16] - Shareholders' equity rose to $4,164.7 million as of February 28, 2021, compared to $3,940.0 million as of November 30, 2020, an increase of 5.7%[16] Acquisitions - The acquisition of Cholula Hot Sauce was completed for approximately $803.0 million, with annual sales at the time of acquisition around $96 million[35] - The acquisition of FONA International, LLC was completed for approximately $706.6 million, with annual sales at the time of acquisition around $114 million[37] - Transaction and integration expenses related to the Cholula and FONA acquisitions are expected to total approximately $35 million and $30 million, respectively[42] - During the three months ended February 28, 2021, transaction and integration expenses related to the acquisitions amounted to $25.1 million[43] - Goodwill increased by $389.6 million due to the acquisition of FONA, with total goodwill for the consumer segment reaching $3,727.6 million and for the flavor solutions segment $1,669.4 million as of February 28, 2021[51] COVID-19 Impact - The company anticipates that the balance of at-home versus away-from-home food demand will be a significant factor influencing fiscal 2021 performance due to COVID-19[28] - The impact of COVID-19 on the consumer segment resulted in a significant increase in at-home consumption, while the flavor solutions segment faced decreased demand from certain customers[27] Expenses and Charges - Special charges recognized in the three months ended February 28, 2021 totaled $1.1 million, compared to $1.0 million in the same period of 2020[45] - Stock-based compensation expense rose to $14.2 million for the three months ended February 28, 2021, up from $6.4 million in the same period of 2020[73] - The company incurred transaction and integration expenses of $18.8 million during the three months ended February 28, 2021, which were excluded from operating income calculations[11] - Transaction-related expenses included in cost of goods sold for the three months ended February 28, 2021, were $6.3 million, compared to the previous year's $0[90] Financial Instruments and Derivatives - As of February 28, 2021, the company had foreign currency exchange contracts totaling $558.9 million, up from $383.8 million at November 30, 2020, all designated as hedges[55] - The notional value of cross currency interest rate swap contracts as of February 28, 2021, was $250 million, with contracts expiring in August 2027[58] - The company had outstanding interest rate swap contracts for a notional amount of $350 million, including contracts with a notional value of $100 million expiring in November 2025[60] - The total fair value of asset derivatives as of February 28, 2021, was $34.1 million, while liability derivatives totaled $34.5 million[63] - For the three months ended February 28, 2021, interest rate contracts recognized an income expense of $2.0 million, compared to $0.5 million for the same period in 2020[65] - The company recorded a loss of $2.1 million on foreign exchange contracts for the three months ended February 28, 2021[65] Tax and Pension - Income taxes for the three months ended February 28, 2021, included a net discrete tax expense of $5.3 million, primarily due to deferred state tax expenses related to the acquisition of FONA[77] - The total pension expense for the three months ended February 28, 2021, was $0 million, compared to an expense of $0.1 million for the same period in 2020[71] - The company contributed $2.3 million to pension plans during the three months ended February 28, 2021, compared to $1.9 million in the same period of 2020[71] - Total contributions to pension plans in fiscal year 2020 were $11.9 million[71]

Acquisitions - McCormick completed the acquisition of FONA International for approximately $710 million, with FONA's annual sales at the time of acquisition being about $114 million[12]. - The company acquired Cholula Hot Sauce for approximately $803 million, with Cholula's annual sales at the time being around $96 million[13]. - The ongoing integration of acquired businesses, such as Cholula and FONA, is expected to impact operational results and financial performance[42]. - The company has completed nine acquisitions since 2015, which are expected to account for approximately one-third of sales growth over time[129]. Financial Performance - For the fiscal year 2020, net sales increased to $5,601.3 million, up from $5,347.4 million in 2019, representing a growth of 4.7%[111]. - Operating income for 2020 was $999.5 million, compared to $957.7 million in 2019, reflecting an increase of 4.0%[111]. - Net income for 2020 was $747.4 million, an increase from $702.7 million in 2019, marking a growth of 6.4%[111]. - The company declared common dividends of $1.27 per share in 2020, up from $1.17 per share in 2019, indicating a 8.5% increase[111]. - The company aims for long-term annual growth objectives of 4% to 6% in sales, 7% to 9% in adjusted operating income, and 9% to 11% in adjusted earnings per share[115]. - Adjusted operating income for the year ended November 30, 2020, was $1,018.8 million, representing a 4.1% increase compared to the prior year[202]. - Adjusted net income for the year ended November 30, 2020, was $762.7 million, reflecting a 6.3% increase year-over-year[202]. - Earnings per share—diluted for the year ended November 30, 2020, was $2.83, up from $2.68 in the previous year, marking a 5.6% increase[202]. Market Segments - In 2020, the consumer segment contributed approximately 64% of consolidated net sales and 77% of consolidated operating income, while the flavor solutions segment contributed about 36% of consolidated net sales and 23% of consolidated operating income[15]. - The consumer segment's sales are primarily driven by spices, herbs, and seasonings, which account for about half of the segment's sales[17]. - The consumer segment's net sales grew by 10.0% in 2020, with segment operating income reaching $780.9 million, reflecting a margin of 21.7%[161]. - Flavor solutions segment net sales decreased by 3.5% in 2020 compared to 2019, with a 2.4% decline on a constant currency basis[167]. Sales and Customer Dependency - Approximately 12% of consolidated sales in 2020 came from Wal-Mart Stores, Inc., while PepsiCo, Inc. accounted for about 11% of consolidated sales[24]. - Approximately 23% of consolidated sales in 2020 were generated from two large customers, highlighting the risk of dependency on major clients[56]. - The company anticipates continued impacts from the COVID-19 pandemic on operations and supply chains, with potential disruptions affecting financial results[46]. Operational Challenges - Seasonal factors lead to lower sales and income in the first two quarters, with significant increases in the fourth quarter due to holiday demand[29]. - The company faces challenges from increased private label competition and changing consumer preferences, which could affect market share[50]. - Supply chain disruptions and procurement issues may negatively impact the availability of key raw materials, affecting production capabilities[59]. - Fluctuations in raw material prices, particularly for dairy, pepper, and vanilla, pose significant risks to the company's financial condition and operating results[57]. - Climate change may negatively impact the availability and pricing of raw materials essential for the company's products[75]. Cost Management and Efficiency - The company has implemented a Comprehensive Continuous Improvement (CCI) program aimed at enhancing productivity and cost savings[1]. - The company recorded $113.0 million in cost savings from its CCI program in 2020, which helped offset increased conversion costs and COVID-19 related expenses[136]. - The company anticipates approximately $110 million in CCI-led cost savings for 2021, similar to the $113 million realized in 2020[141]. Debt and Financial Position - The company incurred approximately $4.9 billion in total indebtedness as of November 30, 2020, following the acquisition of Cholula, and an additional $710 million for the acquisition of FONA[79]. - The company has total outstanding variable rate debt of approximately $950 million at a weighted-average interest rate of approximately 0.3%[76]. - The uncertainty surrounding the phase-out of LIBOR may increase the cost of the company's variable rate debt, impacting financial position and operating results[82]. - The leverage ratio, defined as net debt to adjusted EBITDA, is a key metric for evaluating financial leverage, with expectations to comply with financial covenants for the foreseeable future[210]. Tax and Regulatory Environment - The effective tax rate is projected to rise to approximately 24% in 2021, compared to 19.8% in 2020[142]. - The effective tax rate can be affected by changes in tax legislation and the global mix of earnings[94]. - The company is subject to numerous laws and regulations that could increase compliance costs and adversely affect financial condition[89]. Employee and Operational Safety - The company implemented measures to ensure employee safety and product integrity during the pandemic, including pre-shift temperature checks and work-from-home arrangements[120]. - The company has approximately 13,000 full-time employees worldwide as of November 30, 2020[33]. Cybersecurity and Information Security - The company has experienced cybersecurity threats and incidents, although none have been material to date[86]. - The company maintains an information security program to address risks to its information technology systems and data[86]. - The company relies on third-party vendors for cloud-based services, which increases operational complexity and vulnerability[88]. Stock Performance - The market price of the common stock at the close of business on December 31, 2020, was $95.57 per share for Common Stock and $95.60 per share for Common Stock Non-Voting[106]. - The closing price of non-voting shares at the end of 2020 was $93.49, up from $84.63 at the end of 2019, reflecting a growth of 10.9%[111]. - As of November 30, 2020, approximately $585 million remained of a $600 million share repurchase authorization approved in November 2019[109].

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, 2020 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, 2020 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 ...