Financial Performance - McCormick reported a 3% increase in sales for Q1 2024 compared to the same period last year, with a 2% growth in constant currency[5]. - Operating income for Q1 2024 was $234 million, up from $199 million in Q1 2023, while adjusted operating income increased to $238 million, a 5% rise year-over-year[10]. - Earnings per share (EPS) rose to $0.62 in Q1 2024, compared to $0.52 in the prior year, reflecting a 19% increase; adjusted EPS was $0.63, up 7% from $0.59[11]. - Cash flow from operations for Q1 2024 was $138 million, an increase from $103 million in Q1 2023, driven by higher operating income and working capital improvements[12]. - Total net sales for the three months ended February 29, 2024, were $1,602.7 million, a 2.4% increase compared to $1,565.5 million in the same period of 2023[45]. - Adjusted operating income increased by 4.8% to $233.5 million, up from $199.0 million year-over-year[45]. - The company reported a net income of $166.0 million for the three months ended February 29, 2024, compared to $139.1 million in the same period of 2023[45]. - Net income for the three months ended February 29, 2024, was $166.0 million, representing a 19.3% increase compared to $139.1 million for the same period in 2023[47]. - Net cash flow provided by operating activities rose to $138.4 million, up from $103.4 million year-over-year, indicating a growth of 33.9%[47]. Sales Projections - For fiscal year 2024, McCormick expects sales to range from -2% to 0% compared to 2023, with a constant currency basis projection of -1% to 1%[14]. - Projected percentage change in net sales for the year ending November 30, 2024, is expected to be between -2% to 0%[34]. Earnings Projections - Operating income for 2024 is anticipated to grow by 8% to 10% from $963 million in 2023, with adjusted operating income expected to increase by 3% to 5%[15]. - McCormick projects 2024 EPS to be between $2.76 and $2.81, compared to $2.52 in 2023, with adjusted EPS expected to rise by 4% to 6%[16]. - Adjusted earnings per share for 2024 are projected to be between $2.80 to $2.85, compared to $2.70 for 2023[34]. Segment Performance - The Consumer segment saw a 1% sales increase in Q1 2024, with a 3% rise from pricing actions offset by a 2% decline in volume[18]. - The Flavor Solutions segment reported a 4% sales increase in Q1 2024, with a 2% increase in constant currency, driven by pricing actions and volume growth[20]. - The Consumer segment reported a total net sales increase of 1.3%, while the Flavor Solutions segment saw a 3.8% increase[32]. Profitability Metrics - Gross profit margin expanded by 140 basis points year-over-year, supported by favorable product mix and cost savings initiatives[9]. - The gross profit margin improved to 37.4% in Q1 2024, compared to 36.0% in Q1 2023[45]. Balance Sheet Highlights - Total assets increased to $12,890.1 million as of February 29, 2024, up from $12,862.3 million on November 30, 2023, reflecting a growth of 0.22%[46]. - Total current liabilities decreased to $2,973.8 million from $3,098.9 million, a reduction of 4.0%[46]. - Long-term debt remained stable at $3,329.1 million compared to $3,339.9 million, showing a slight decrease of 0.3%[46]. - Retained earnings increased to $3,412.8 million from $3,249.7 million, reflecting a growth of 5.0%[46]. Cash Management - Cash and cash equivalents at the end of the period were $178.0 million, an increase from $166.6 million at the beginning of the period, marking a growth of 6.8%[47]. - Dividends paid increased to $112.7 million from $104.6 million, representing a rise of 7.7% year-over-year[47]. - The effect of exchange rate changes on cash and cash equivalents resulted in an increase of $2.5 million during the quarter[47]. Cost Management Initiatives - The company is focused on productivity improvements and cost savings through its CCI and GOE programs[37].
McCormick(MKC_V) - 2024 Q1 - Quarterly Results