Financial Performance - Net sales for the three months ended May 31, 2024, were $1,643.2 million, a slight decrease of 1.0% compared to $1,659.2 million in the same period of 2023[11] - Gross profit for the six months ended May 31, 2024, increased to $1,218.9 million, up 3.4% from $1,178.4 million in 2023[11] - Operating income for the three months ended May 31, 2024, was $234.1 million, representing an increase of 5.2% from $221.8 million in 2023[11] - Net income for the six months ended May 31, 2024, rose to $350.2 million, a 20.2% increase compared to $291.2 million in 2023[11] - Earnings per share (diluted) for the three months ended May 31, 2024, were $0.68, up from $0.56 in the same period of 2023, reflecting a 21.4% increase[11] - Net income for the three months ended May 31, 2024, was $184.2 million, compared to $152.1 million for the same period in 2023, representing a 21.1% increase[21] - For the six months ended May 31, 2024, net income totaled $350.2 million, compared to $291.2 million for the same period in 2023, marking a 20.2% increase[22] - Operating income for the first half of 2024 was $467.6 million, up from $420.8 million in the first half of 2023, indicating a strong performance[81] Dividends and Shareholder Returns - Cash dividends declared per share for the six months ended May 31, 2024, were $0.42, compared to $0.39 in 2023, marking a 7.7% increase[11] - Dividends paid during the three months ended May 31, 2024, totaled $112.7 million, consistent with the same amount paid in the previous year[21] - The company paid dividends of $112.7 million in both the three and six months ended May 31, 2024, consistent with the previous year[21] - As of May 31, 2024, the company had $497.0 million remaining from the $600 million share repurchase program authorized in November 2019[73] Assets and Liabilities - Total assets as of May 31, 2024, were $12,987.6 million, an increase from $12,862.3 million as of November 30, 2023[15] - Total liabilities decreased to $7,633.4 million as of May 31, 2024, down from $7,778.8 million as of November 30, 2023[15] - Total shareholders' equity increased from $5,257.4 million on February 29, 2024, to $5,354.2 million on May 31, 2024, reflecting a growth of 1.8%[21] Special Charges and Cost Management - Special charges for the three months ended May 31, 2024, amounted to $1.8 million, a decrease from $13.2 million in the same period of 2023[35] - The company recorded $6.0 million in special charges for the six months ended May 31, 2024, down from $41.0 million for the same period in 2023[38] - Special charges for the six months ended May 31, 2024, totaled $6.0 million, significantly lower than $41.0 million for the same period in 2023, indicating a reduction of 85.4%[36] - The company reported a decrease in special charges from $13.2 million in Q2 2023 to $1.8 million in Q2 2024, highlighting improved operational efficiency[81] Cash Flow and Capital Expenditures - The company reported net cash flow provided by operating activities of $301.5 million for the six months ended May 31, 2024, compared to $394.2 million in 2023[19] - Capital expenditures for the six months ended May 31, 2024, were $130.3 million, an increase from $118.6 million in 2023[19] Segment Performance - The consumer segment reported net sales of $904.5 million for the three months ended May 31, 2024, down from $912.1 million in the same period of 2023[80] - The flavor solutions segment achieved net sales of $738.7 million for the three months ended May 31, 2024, compared to $747.1 million in the same period of 2023[80] - Net sales in the Americas for the six months ended May 31, 2024, were $2,283.5 million, slightly up from $2,272.5 million in the same period last year[82] - EMEA net sales for the first half of 2024 were $614.0 million, an increase from $594.6 million in the first half of 2023, indicating growth in that region[82] - APAC net sales decreased to $348.4 million in the first half of 2024 from $357.6 million in the same period last year, reflecting challenges in that market[82] Financial Instruments and Risk Management - The company utilizes derivative financial instruments to manage risks related to foreign currency and interest rates, with all derivatives designated as hedges[43] - The notional amount of outstanding foreign currency exchange contracts as of May 31, 2024, was $939.6 million, down from $1,000.4 million as of November 30, 2023[45] - Interest rate derivative contracts had a notional amount of $600 million in liabilities as of May 31, 2024, with a fair value of $53.8 million[48] Tax and Pension Contributions - The company recognized $19.4 million in tax benefits related to a deferred tax asset from an international legal entity reorganization for the six months ended May 31, 2024[69] - The company contributed $3.5 million to pension plans during the six months ended May 31, 2024, slightly down from $3.6 million in the prior year[62] - The total contributions to pension plans in fiscal year 2023 were $9.2 million[62] Stock Options and Compensation - The number of outstanding stock options increased to 6.2 million as of May 31, 2024, from 5.5 million in the same period of 2023[65] - The weighted-average grant-date fair value of stock options granted in 2024 was $17.63, compared to $19.35 in 2023[65] - The intrinsic value of all options outstanding as of May 31, 2024, was $43.0 million[66] - Stock-based compensation for the three months ended May 31, 2024, was $19.4 million, compared to $26.7 million for the same period in 2023, indicating a decrease of 27.3%[21]
McCormick(MKC_V) - 2024 Q2 - Quarterly Report