Financial Performance - Net sales for the three months ended May 31, 2025, were $1,659.5 million, a slight increase from $1,643.2 million in the same period of 2024, representing a growth of 1.0%[11] - Gross profit for the six months ended May 31, 2025, was $1,226.8 million, compared to $1,218.9 million in 2024, reflecting a year-over-year increase of 0.8%[11] - Operating income for the three months ended May 31, 2025, was $245.8 million, up from $234.1 million in 2024, indicating a growth of 5.0%[11] - Net income for the six months ended May 31, 2025, was $337.3 million, down from $350.2 million in 2024, showing a decrease of 3.9%[13] - Earnings per share (diluted) for the three months ended May 31, 2025, was $0.65, compared to $0.68 in 2024, a decline of 4.4%[11] - The company reported a comprehensive income of $300.7 million for the three months ended May 31, 2025, compared to $192.2 million in 2024, an increase of 56.5%[13] - For the three months ended May 31, 2025, McCormick reported a net income of $175.0 million, compared to $184.2 million for the same period in 2024, reflecting a decrease of approximately 4.1%[19] - Total operating income for the six months ended May 31, 2025, was $471.0 million, compared to $467.6 million for the same period in 2024, indicating a slight increase[85] Dividends and Shareholder Equity - Cash dividends declared per share for the six months ended May 31, 2025, increased to $0.45 from $0.42 in 2024, representing a rise of 7.1%[11] - The total shareholders' equity increased to $5,630.4 million as of May 31, 2025, up from $5,354.2 million a year earlier, representing an increase of about 5.1%[19] - The company declared dividends of $120.8 million for both the three and six months ended May 31, 2025, consistent with the previous year[19] Assets and Liabilities - Total assets as of May 31, 2025, were $13,190.4 million, an increase from $13,070.3 million as of November 30, 2024, reflecting a growth of 0.9%[15] - Total liabilities decreased to $7,560.0 million as of May 31, 2025, from $7,753.5 million as of November 30, 2024, a reduction of 2.5%[15] - The balance of retained earnings as of May 31, 2025, was $3,739.0 million, an increase from $3,480.3 million a year earlier, reflecting a growth of approximately 7.4%[19] Cash Flow and Financial Activities - Net cash flow provided by operating activities for the six months ended May 31, 2025, was $161.4 million, down from $301.5 million in 2024, a decrease of 46.5%[18] - The company completed the acquisition of Jurado, Inc. for approximately $38.1 million, with $32.3 million allocated to tangible assets acquired[39] - The company entered into a five-year $2.0 billion revolving credit facility in May 2025, replacing a previous $1.5 billion facility, with current pricing at Term SOFR plus 1.125%[43] - The company reported a loss of $17.4 million from foreign exchange contracts for the three months ended May 31, 2025, compared to a loss of $3.8 million in the same period of 2024[52] Special Charges and Expenses - McCormick recorded special charges of $12.8 million for the three months ended May 31, 2025, significantly higher than the $1.8 million recorded in the same period of 2024[33] - Special charges for the Consumer segment amounted to $7.8 million for the three months ended May 31, 2025, compared to $1.5 million in the same period of 2024, indicating a significant increase[42] - The company recorded $0.8 million in transaction and integration costs related to the acquisition of Jurado during the three and six months ended May 31, 2025, with total expected costs of approximately $4.0 million for fiscal year 2025[41] Tax and Regulatory Matters - Income tax expense for the three months ended May 31, 2025, included $2.4 million of net discrete tax benefits, primarily from the reversal of certain reserves for unrecognized tax benefits[70] - For the six months ended May 31, 2025, the income tax expense included $7.6 million of net discrete tax benefits, mainly due to the revaluation of deferred taxes associated with enacted legislation[71] Segment Performance - The Consumer segment generated net sales of $930.6 million for the three months ended May 31, 2025, up from $904.5 million in the prior year, while the Flavor Solutions segment reported $728.9 million, down from $738.7 million[83] - For the six months ended May 31, 2025, the Americas region accounted for $2,294.6 million in net sales, while EMEA and APAC contributed $608.1 million and $362.3 million, respectively[86] Stock and Compensation - Stock-based compensation for the three months ended May 31, 2025, amounted to $9.6 million, compared to $19.4 million for the same period in 2024[33] - The intrinsic value of all options outstanding as of May 31, 2025, was $35.2 million, with $34.3 million for options currently exercisable[67] Other Comprehensive Income - The accumulated other comprehensive loss decreased to $401.2 million from $491.2 million as of November 30, 2024[78] - Other comprehensive income for the three months ended May 31, 2025, was $124.7 million, which included a net tax effect of $123.4 million[19]
McCormick(MKC_V) - 2025 Q2 - Quarterly Report