Sales Performance - Sales in Q3 2024 were comparable to the year-ago period, with a volume growth of 1% partially offset by pricing[1]. - Consumer segment sales were comparable to Q3 2023, with a 1% increase in volume growth fully offset by a 1% decrease from pricing[11]. - Flavor Solutions segment sales declined 1% from Q3 2023, with operating income excluding special charges growing 31% compared to the year-ago period[14][16]. - Total net sales for the three months ended August 31, 2024, showed a slight decline of 0.3% as reported, but a 0.1% increase on a constant currency basis[21]. - The Flavor Solutions segment experienced a reported decline of 0.7% in net sales for the three months ended August 31, 2024, but a 0.2% increase on a constant currency basis[21]. Income and Earnings - Operating income increased to $287 million in Q3 2024, up from $245 million in Q3 2023, with adjusted operating income at $288 million compared to $251 million[1][6]. - Earnings per share rose to $0.83 in Q3 2024, compared to $0.63 in the year-ago period, with adjusted earnings per share also at $0.83 versus $0.65[7]. - Net income for the three months ended August 31, 2024, was $223.1 million, representing a 28.3% increase from $170.1 million in the same period last year[19]. - Adjusted earnings per share for the three months ended August 31, 2024, was $0.83, a 27.7% increase compared to $0.65 in the prior year[19]. - The company projects diluted earnings per share for 2024 to be between $2.81 and $2.86, compared to $2.52 for the year ended November 30, 2023[23]. Financial Projections - For fiscal year 2024, McCormick expects sales to range between (1)% to 1% compared to 2023, with operating income projected to grow by 9% to 11% from $963 million in 2023[8][9]. - The company anticipates 2024 earnings per share to be in the range of $2.81 to $2.86, compared to $2.52 in 2023, representing an expected increase of 5% to 7%[10]. - For the nine months ended August 31, 2024, adjusted operating income increased by 6.9% compared to the same period in 2023[22]. - The company anticipates continued growth driven by brand marketing support, product innovation, and expansion in various markets[25]. Cash Flow and Assets - Net cash provided by operating activities through Q3 2024 was $463 million, down from $660 million in the same period of 2023[7]. - Cash and cash equivalents at the end of the period were $154.7 million, reflecting a decrease of $701.2 million during the period[36]. - The company reported net cash flow provided by operating activities of $463.2 million, down from $660.1 million in the prior year[34]. - Total assets as of August 31, 2024, were $13,204.9 million, up from $12,862.3 million a year earlier[32]. - Total liabilities decreased slightly to $7,753.9 million from $7,778.8 million in the previous year[33]. Profitability Metrics - Gross profit margin expanded by 170 basis points year-over-year, driven by favorable mix and cost savings from the Comprehensive Continuous Improvement program[6]. - Gross profit increased to $649.9 million, resulting in a gross profit margin of 38.7%, up from 37.0% in the prior year[31]. - Adjusted operating income for the three months ended August 31, 2024, was $288.4 million, a 14.9% increase compared to $251.1 million for the same period in 2023[19]. - The adjusted operating income margin for the three months ended August 31, 2024, was 17.2%, up from 14.9% in the prior year[19]. - Operating income rose to $286.5 million compared to $245.0 million in the same quarter last year[31]. Strategic Initiatives - The company plans to host its Investor Day on October 22, 2024, to share its strategic roadmap and long-term objectives[2]. - The impact of foreign currency exchange rates has been noted as a significant factor affecting reported results, with adjustments made for constant currency comparisons[20]. - Capital expenditures for the nine months ended August 31, 2024, were $189.3 million, compared to $187.2 million in the same period last year[35].
McCormick(MKC_V) - 2024 Q3 - Quarterly Results