Financial Performance - Net sales for the three months ended August 31, 2025, were $1,724.9 million, an increase of 2.5% compared to $1,679.8 million in the same period of 2024[11] - Gross profit for the nine months ended August 31, 2025, was $1,871.9 million, slightly up from $1,868.8 million in 2024, indicating a stable gross margin[11] - Operating income for the three months ended August 31, 2025, was $288.7 million, compared to $286.5 million in 2024, reflecting a year-over-year increase of 0.8%[11] - Net income for the nine months ended August 31, 2025, was $562.8 million, down from $573.3 million in 2024, representing a decrease of 1.0%[12] - Earnings per share (diluted) for the three months ended August 31, 2025, were $0.84, consistent with $0.83 in the same period of 2024[11] - For the three months ended August 31, 2025, net income was $225.5 million, compared to $223.1 million for the same period in 2024, reflecting a growth of 1.1%[19] - Total net sales for the nine months ended August 31, 2025, reached $4,989.9 million, compared to $4,925.7 million for the same period in 2024[83] - Operating income for the nine months ended August 31, 2025, was $759.7 million, compared to $754.1 million in 2024, reflecting an increase of 0.7%[11] Shareholder Returns - Cash dividends declared per share for the nine months ended August 31, 2025, were $0.90, an increase from $0.84 in 2024[11] - The company paid dividends totaling $120.7 million in the three months ended August 31, 2025, compared to $112.9 million in the same period of 2024, reflecting a 6.2% increase[19] - The company declared cash dividends of $0.45 per share for the three months ended August 31, 2025, up from $0.42 per share in 2024, representing a growth of 7.1%[11] - The company has $419 million remaining from the $600 million share repurchase program authorized in November 2019[77] Assets and Liabilities - Total assets as of August 31, 2025, were $13,247.0 million, up from $13,070.3 million as of November 30, 2024[15] - Total liabilities decreased to $7,463.4 million as of August 31, 2025, from $7,753.5 million as of November 30, 2024[15] - Cash and cash equivalents decreased to $94.9 million as of August 31, 2025, down from $186.1 million at the end of November 2024[15] - The carrying amount of long-term debt was $3,862.2 million, with a total fair value of $3,714.3 million as of August 31, 2025[61] Comprehensive Income - The company reported a comprehensive income of $267.4 million for the three months ended August 31, 2025, compared to $223.0 million in 2024, showing a significant increase[13] - Other comprehensive income for the three months ended August 31, 2025, was $39.7 million, compared to a loss of $2.2 million in the same period of 2024, indicating a significant improvement[19] - The accumulated other comprehensive loss decreased by $133.6 million during the nine months ended August 31, 2025, primarily due to foreign currency translation adjustments[78] Cash Flow - Net cash flow provided by operating activities for the nine months ended August 31, 2025, was $420.2 million, compared to $463.2 million in 2024, indicating a decline of 9.3%[18] - The company incurred capital expenditures of $138.1 million for the nine months ended August 31, 2025, compared to $189.3 million in 2024, indicating a decrease of 27.0%[18] Special Charges and Costs - The company recorded special charges of $4.9 million for the three months ended August 31, 2025, compared to $1.9 million for the same period in 2024, indicating a significant increase in restructuring costs[33] - Total special charges for the nine months ended August 31, 2025, were $17.7 million, compared to $7.9 million for the same period in 2024[43] - Transaction and integration costs for the three months ended August 31, 2025, amounted to $1.9 million, including $1.0 million related to the step-up of acquired Jurado inventory[41] Segment Performance - The Consumer segment net sales for the three months ended August 31, 2025, were $973.2 million, an increase from $937.4 million in the same period of 2024, while the Flavor Solutions segment net sales were $751.7 million, up from $742.4 million[83] - The Consumer segment generated net sales of $973.2 million for the three months ended August 31, 2025, up from $937.4 million in 2024, marking a growth of 3.0%[83] - The Flavor Solutions segment achieved net sales of $751.7 million for the three months ended August 31, 2025, compared to $742.4 million in 2024, indicating a growth of 1.8%[83] Tax Benefits - For the three months ended August 31, 2025, the company reported net discrete tax benefits of $20.0 million, including $8.7 million from the reversal of unrecognized tax benefits and $8.1 million from state tax matters[70] - For the nine months ended August 31, 2025, the company recognized net discrete tax benefits of $27.6 million, with $10.2 million from the reversal of unrecognized tax benefits and $5.0 million from the revaluation of deferred taxes[71] Foreign Currency and Derivatives - As of August 31, 2025, the notional amount of outstanding foreign currency exchange contracts was $1,136.2 million, up from $1,034.2 million as of November 30, 2024[47] - The company reported a loss of $16.6 million on foreign exchange contracts for the nine months ended August 31, 2025[53] - The total liabilities related to foreign currency derivatives, interest rate derivatives, and cross currency contracts amounted to $50.3 million as of August 31, 2025[58] Employee Compensation - Stock-based compensation expenses for the three months ended August 31, 2025, amounted to $7.7 million, compared to $8.8 million for the same period in 2024, indicating a decrease of 12.5%[33] - The number of outstanding stock options decreased from 6.1 million at the beginning of the period to 5.6 million by August 31, 2025[67] - The total pension and other postretirement benefits income for the three months ended August 31, 2025, was $(1.2) million, compared to $(1.9) million for the same period in 2024[64]
McCormick(MKC_V) - 2025 Q3 - Quarterly Report