Financial Performance - Net sales for the three months ended August 31, 2023, increased to $1,684.7 million, a 5.6% increase from $1,595.6 million in the same period of 2022[11] - Gross profit for the nine months ended August 31, 2023, was $1,801.2 million, up from $1,650.1 million in 2022, reflecting a 9.2% increase[11] - Operating income for the three months ended August 31, 2023, was $245.0 million, compared to $235.2 million in the same period of 2022, representing a 4.0% increase[11] - Net income for the three months ended August 31, 2023, was $170.1 million, down from $222.9 million in 2022, a decrease of 23.6%[13] - Earnings per share (diluted) for the nine months ended August 31, 2023, was $1.71, compared to $1.83 in 2022, a decline of 6.6%[11] - For the nine months ended August 31, 2023, net sales reached $4,909.4 million, an increase of 5.5% from $4,654.8 million in the same period of 2022[11] - The operating income for the nine months ended August 31, 2023, was $665.8 million, up from $599.3 million in the prior year, marking an increase of 11.1%[11] Cash Flow and Assets - Net cash flow provided by operating activities for the nine months ended August 31, 2023, was $660.1 million, significantly higher than $250.1 million in 2022[19] - The company reported a decrease in cash and cash equivalents to $154.7 million as of August 31, 2023, down from $334.0 million at the beginning of the period[19] - Total assets as of August 31, 2023, were $12,990.1 million, a slight decrease from $13,124.9 million as of November 30, 2022[15] - Total liabilities decreased to $7,920.0 million as of August 31, 2023, from $8,425.7 million as of November 30, 2022[15] - Total current liabilities decreased to $3,171.0 million as of August 31, 2023, down from $3,432.4 million in November 2022, a reduction of approximately 7.6%[16] - Long-term debt decreased to $3,385.3 million as of August 31, 2023, down from $3,642.3 million in November 2022, a reduction of approximately 7.1%[16] Shareholder Returns - Cash dividends paid per share increased to $0.39 for the three months ended August 31, 2023, compared to $0.37 in the same period of 2022[11] - The company paid dividends totaling $104.7 million in the three months ended August 31, 2023, compared to $99.2 million in the same period in 2022, reflecting an increase of approximately 5.5%[20] - Dividends paid increased to $313.8 million for the nine months ended August 31, 2023, compared to $297.5 million in the prior year, reflecting a rise of 5.5%[19] - As of August 31, 2023, $510.5 million remained of the $600 million share repurchase program authorized in November 2019, indicating ongoing commitment to returning capital to shareholders[73] Special Charges and Expenses - Special charges for the three months ended August 31, 2023, amounted to $6.1 million, compared to $3.4 million for the same period in 2022, indicating an increase of approximately 79.4%[30] - The company recorded $47.1 million in special charges for the nine months ended August 31, 2023, down from $51.6 million for the same period in 2022, a decrease of about 8.7%[31] - The Global Operating Effectiveness (GOE) program accounted for $3.6 million of the special charges in the three months ended August 31, 2023[30] - The company incurred special charges of $6.1 million for the three months ended August 31, 2023, compared to $3.4 million in the same period of 2022[83] Tax and Income - Income tax expense for the nine months ended August 31, 2023 included $10.1 million in net discrete tax benefits, primarily from adjustments related to deferred tax assets and unrecognized tax benefits[68] - The company reported a net discrete tax expense of $3.3 million for the three months ended August 31, 2023, which included various tax benefits and expenses related to prior year earnings[67] Segment Performance - The Americas region generated net sales of $1,203.3 million for the three months ended August 31, 2023, compared to $1,141.7 million in the same period of 2022, a growth of 5.4%[83] - The consumer segment generated net sales of $937.1 million for the three months ended August 31, 2023, up from $927.9 million in the prior year[82] - The flavor solutions segment reported net sales of $747.6 million for the three months ended August 31, 2023, compared to $667.7 million in the same period of 2022, marking an increase of 12.0%[82] Financial Instruments and Contracts - The company executed a nonrecourse accounts receivable sale program, selling approximately $26.1 million in receivables during the three and nine months ended August 31, 2023[42] - As of August 31, 2023, the company had foreign currency exchange contracts totaling $966.5 million, up from $560.5 million at November 30, 2022[45] - The company recognized a loss of $4.9 million on interest rate contracts for the three months ended August 31, 2023, compared to a gain of $0.6 million in 2022[51] - The company recognized a loss of $(8.0) million on cross currency contracts for the three months ended August 31, 2023[53] Pension and Stock-Based Compensation - The company contributed $7.4 million to its pension plans during the nine months ended August 31, 2023, compared to $9.9 million in the same period in 2022[61] - Stock-based compensation expense for the three months ended August 31, 2023, was $12.6 million, slightly up from $12.2 million in 2022[64] - Stock-based compensation expense for the nine months ended August 31, 2023, was $51.1 million, compared to $49.1 million in 2022[64]
McCormick(MKC_V) - 2023 Q3 - Quarterly Report