McCormick(MKC) - 2025 Q4 - Annual Results

Financial Performance - Net sales increased by 3% in Q4 2025, with organic sales growing by 2% and a 1% favorable impact from currency[1] - For fiscal year 2025, total net sales rose by 2%, with organic sales remaining flat due to minimal currency impact; earnings per share was $2.93, up from $2.92 in 2024[1] - Operating income for Q4 2025 was $311 million, a 1.6% increase from the previous year, while adjusted operating income rose to $317 million[3] - The consumer segment net sales increased by 4% in Q4 2025 to $1,127 million, with organic sales up by 3% driven by price and volume[4] - Cash flow from operations for fiscal year 2025 was $962 million, an increase from $922 million in 2024[5] - Gross profit margin for fiscal year 2025 was 37.9%, a contraction of 60 basis points compared to the previous year[5] - Adjusted gross profit for the year ended November 30, 2025, was $2,594.3 million, maintaining a gross profit margin of 37.9%[8] - Adjusted operating income for the year ended November 30, 2025, was $1,094.0 million, reflecting a 2.3% increase compared to the previous year[8] - Net income for the year ended November 30, 2025, was $789.4 million, with an adjusted net income of $807.1 million, a 1.4% increase year-over-year[8] - The company's gross profit for the year ended November 30, 2025, was $2,592.2 million, slightly up from $2,591.0 million in the previous year[14] - Operating income for the year increased to $1,070.8 million, compared to $1,060.3 million in 2024, reflecting a growth of 1.5%[14] - Net income for the year was $789.4 million, a marginal increase from $788.5 million in 2024[14] - Earnings per share (diluted) for the year remained stable at $2.93, compared to $2.92 in the previous year[14] Future Outlook - Fiscal year 2026 outlook projects net sales growth of 13% to 17%, with organic sales growth expected to be between 1% to 3%[6] - Adjusted earnings per share for fiscal year 2026 is forecasted to be between $3.05 and $3.13, reflecting a growth of 2% to 5%[6] - The acquisition of a controlling interest in McCormick de Mexico is expected to contribute 11% to 13% to net sales growth in 2026[6] - Projected net sales growth for the year ending November 30, 2026, is expected to be between 13% to 17%, with an impact of favorable foreign currency exchange of 1%[11] - Adjusted operating income is projected to increase by 16% to 20% for the same period, with a constant currency increase of 15% to 19%[11] - Adjusted earnings per share (diluted) is expected to rise by 2% to 5%, with a constant currency increase of 1% to 4%[11] Assets and Liabilities - Total assets as of November 30, 2025, were $13,200.4 million, up from $13,070.3 million in 2024[15] - Total liabilities decreased to $7,432.3 million from $7,753.5 million in the previous year, indicating improved financial health[15] - Cash and cash equivalents at the end of the year were $95.9 million, down from $186.1 million at the beginning of the year[16] - The company invested $221.8 million in capital expenditures during the year, compared to $274.9 million in 2024[16] Strategic Initiatives - The company plans to continue investing in core categories to sustain volume trends and drive long-term profitable growth[2] - McCormick's commitment to innovation and market expansion continues to drive its strategy, focusing on consumer demand for flavor[13] - The company plans to continue providing non-GAAP financial measures to enhance comparisons to prior periods and facilitate future projections[7]