Financial 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 in the same period last 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 prior 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 same period last year, marking a 31.7% increase[5] - Total shareholders' equity as of August 31, 2024, was $5,451.0 million, up from $5,354.2 million as of May 31, 2024[14] - The company reported a net income of $573.3 million for the nine months ended August 31, 2024[15] - The company reported a total (income) expense of $(0.5) million for pension and other postretirement benefits for the nine months ended August 31, 2024[59] 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] - The fair value of cash and cash equivalents as of August 31, 2024, is $200.8 million[52] 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] - The balance of retained earnings increased to $3,577.2 million as of August 31, 2024, from $3,480.3 million as of May 31, 2024[14] - The total carrying amount of long-term debt as of August 31, 2024, is $3,407.3 million, with a total fair value of $3,257.1 million[55] Dividends and Share Repurchase - 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 by the Board of Directors[73] 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 for the same period in 2023[39] - 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] Segment Performance - Operating income excluding special charges for the consumer segment was $186.8 million, compared to $173.3 million in the prior year, reflecting a growth of 8.1%[79] - The flavor solutions segment reported net sales of $742.4 million for the three months ended August 31, 2024, down from $747.6 million in the same period of 2023, indicating a decline of 0.3%[79] - The consumer segment reported net sales of $937.4 million for the three months ended August 31, 2024, compared to $937.1 million in the same period of 2023, indicating stable performance[79] Tax and Compensation - Income tax expense for the three months ended August 31, 2024, included $16.3 million of net discrete tax benefits, primarily from the reversal of certain reserves for unrecognized tax benefits[67] - For the nine months ended August 31, 2024, the income tax expense included $34.9 million of net discrete tax benefits, with $19.4 million related to the recognition of a deferred tax asset[68] - Stock-based compensation for the three months ended August 31, 2024, was $8.8 million, down from $12.6 million in 2023, representing a decrease of approximately 30%[61] Other Comprehensive Income - The accumulated other comprehensive loss increased to $390.4 million as of August 31, 2024, from $388.6 million as of November 30, 2023[9] - The company recognized a gain of $2.4 million from cross currency contracts for the nine months ended August 31, 2024[48]
McCormick(MKC_V) - 2024 Q3 - Quarterly Report