McCormick(US:MKC)2024-10-01 20:07Financial Performance - Net sales for the three months ended August 31, 2024, were $1,679.8 million, a slight decrease from $1,684.7 million in the same period last year[5] - Gross profit increased to $649.9 million for the three months ended August 31, 2024, compared to $622.8 million in the prior year, reflecting a gross margin improvement[5] - Operating income rose to $286.5 million for the three months ended August 31, 2024, up from $245.0 million year-over-year, indicating a 16.3% increase[5] - Net income for the three months ended August 31, 2024, was $223.1 million, compared to $170.1 million in the same period last year, representing a 31.1% increase[7] - Earnings per share (EPS) for the three months ended August 31, 2024, were $0.83, up from $0.63 in the prior year, marking a 31.7% increase[5] - Total operating income excluding special charges for the nine months ended August 31, 2024, was $762.0 million, up from $712.9 million in the same period of 2023, representing a growth of 6.9%[81] - Operating income excluding special charges for the three months ended August 31, 2024, was $288.4 million, compared to $251.1 million for the same period in 2023, reflecting an increase of 14.8%[79] Cash Flow and Assets - Cash and cash equivalents increased to $200.8 million as of August 31, 2024, compared to $166.6 million at the end of the previous period[9] - Total assets grew to $13,204.9 million as of August 31, 2024, up from $12,862.3 million at the end of the previous period[9] - The company reported a net cash flow provided by operating activities of $463.2 million for the nine months ended August 31, 2024, down from $660.1 million in the prior year[12] Shareholder Returns - The company declared cash dividends of $0.42 per share for the three months ended August 31, 2024, compared to $0.39 in the same period last year[5] - The company paid dividends totaling $112.9 million during the three months ended August 31, 2024[14] - As of August 31, 2024, $472.5 million remained of the $600 million share repurchase program authorized in November 2019[73] Liabilities and Equity - Total liabilities decreased slightly to $7,753.9 million as of August 31, 2024, compared to $7,778.8 million at the end of the previous period[9] - Total shareholders' equity as of August 31, 2024, was $5,451.0 million, up from $5,354.2 million at the end of May 2024[14] Special Charges and Costs - Special charges recorded during the three months ended August 31, 2024, amounted to $1.9 million, primarily related to the Global Operating Effectiveness program[29] - Special charges for the three months ended August 31, 2024, totaled $1.9 million, compared to $6.1 million in the same period of 2023, indicating a significant reduction[81] - The GOE program incurred total costs of approximately $48 million as of November 30, 2023, with special charges of $4.6 million recognized during the nine months ended August 31, 2024[31] Operational Insights - The company expects higher net sales and cash flow in the second half of the fiscal year due to seasonal consumer purchasing patterns[21] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[5] - The company has integrated manufacturing and warehousing across its segments to maximize cost efficiencies, although segments are managed separately[78] Pension and Other Benefits - For the nine months ended August 31, 2024, total contributions to pension plans were $5.2 million, compared to $7.4 million for the same period in 2023[59] - The expected return on plan assets for the nine months ended August 31, 2024, was $(29.7) million, compared to $(31.8) million for the same period in 2023[59] - The net aggregate amount of pension and other postretirement benefits income, excluding service cost components, was $(1.9) million for Q3 2024, compared to $(2.7) million for Q3 2023[60] Foreign Currency and Financial Instruments - As of August 31, 2024, the notional amount of outstanding foreign currency exchange contracts was $1,110.7 million, up from $1,000.4 million as of November 30, 2023[40] - The company recognized a gain of $2.4 million from cross currency contracts for the nine months ended August 31, 2024, compared to a loss of $17.6 million in the same period of 2023[48] Stock Options and Compensation - Stock-based compensation for the three months ended August 31, 2024, was $8.8 million[14] - The weighted-average grant-date fair value of stock options granted in 2024 was $17.63, down from $19.35 in 2023[62] - The number of stock options outstanding at the end of the period increased to 6.1 million in 2024 from 5.3 million in 2023[63]