Sales Performance - For Q4 2024, McCormick's sales increased by 3% year-over-year, with a 1% benefit from currency, driven primarily by volume growth [3]. - For fiscal year 2024, total sales rose by 1% compared to 2023, with earnings per share increasing to $2.92 from $2.52 in the prior year, representing a 15.9% growth [3][19]. - The consumer segment's sales for fiscal year 2024 reached $3,849 million, with organic sales growth of 1% driven by volume [14]. - The Flavor Solutions segment reported a 1% sales increase for fiscal year 2024, totaling $2,875 million, with organic sales growth driven by pricing [17]. - Total net sales for the three months ended November 30, 2024, increased by 2.6%, with organic sales growth at 1.8% [32]. - Total net sales for the year ended November 30, 2024, increased by 0.9% to $6,723.7 million compared to $6,662.2 million in 2023 [44]. - The Americas region reported a 3.7% increase in total consumer sales for the three months ended November 30, 2024 [32]. - The EMEA region experienced a significant 7.3% increase in total net sales for the year ended November 30, 2024 [44]. - The APAC region reported a decline of 5.1% in total net sales for the year ended November 30, 2024 [44]. Profitability and Income - Adjusted operating income for fiscal year 2024 was $1,070 million, reflecting a 5% increase from the previous year, supported by gross profit margin expansion [18]. - The gross profit margin for Q4 2024 expanded by 20 basis points to 40.2%, driven by cost savings from the Comprehensive Continuous Improvement (CCI) program [11]. - Consumer segment operating income increased 1% to $740 million in 2024 compared to the previous year, driven by higher sales and cost savings from the CCI program [22]. - Flavor Solutions segment operating income grew 14% to $330 million in 2024 compared to 2023, supported by a favorable product mix and cost savings from the CCI program [22]. - Adjusted net income for the year ended November 30, 2024, was $795.6 million, reflecting a 9.4% increase compared to the previous year [27]. - The company reported a net income of $215.2 million for the three months ended November 30, 2024, compared to $219.3 million in the same period of 2023 [44]. - McCormick reported a net income of $788.5 million for the year ended November 30, 2024, an increase of 15.9% compared to $680.6 million in the previous year [46]. Cash Flow and Financial Position - Cash flow from operations for fiscal year 2024 was $922 million, down from $1.2 billion in 2023, attributed to increased working capital and higher incentive compensation payments [20]. - The company expects strong cash flow for fiscal 2025, driven by profit and working capital initiatives, with a significant portion returned to shareholders through dividends [24]. - Net cash flow provided by operating activities was $921.9 million, down from $1,237.3 million, reflecting a decrease of 25.5% [46]. - Cash and cash equivalents at the end of the period were $186.1 million, up from $166.6 million at the beginning of the period, indicating a positive cash flow [47]. - Total assets increased to $13,070.3 million as of November 30, 2024, up from $12,862.3 million a year earlier, reflecting a growth of 1.6% [45]. - Total current liabilities decreased to $2,882.8 million from $3,098.9 million, a reduction of 7% year-over-year [45]. - Long-term debt increased to $3,593.6 million from $3,339.9 million, representing a rise of 7.6% [45]. - The company’s retained earnings rose to $3,545.0 million, an increase of 9.1% from $3,249.7 million in the previous year [45]. - The company experienced a decrease in inventories, which fell by $125.0 million, compared to an increase of $225.0 million in the previous year [46]. Future Outlook - The company's 2025 outlook emphasizes continued investments in core categories to enhance volume trends and long-term growth, despite anticipated foreign currency impacts [21]. - Total net sales growth is expected to be between 0% to 2% for the upcoming period, with organic sales growth projected at 1% to 3% over the 2024 level [23]. - Adjusted operating income is anticipated to grow by 3% to 5%, with earnings per share (EPS) projected between $2.99 and $3.04 [23]. - Projected percentage change in net sales for the year ending November 30, 2025, is expected to be between 0% to 2%, with a constant currency basis change of 1% to 3% [34]. - Adjusted earnings per share (diluted) for 2025 is projected to be between $3.03 to $3.08, compared to $2.95 for 2024 [34]. - The company anticipates a 3% to 5% increase in adjusted operating income for the year ending November 30, 2025, with a constant currency basis change of 4% to 6% [34]. Shareholder Returns - The company authorized a 7% increase in the quarterly dividend, marking the 39th consecutive year of dividend increases [3].
McCormick(MKC_V) - 2024 Q4 - Annual Results