McCORMICK REPORTS STRONG 2024 FINANCIAL RESULTS AND PROVIDES 2025 OUTLOOK

Core Insights - McCormick & Company reported strong financial performance for both the fourth quarter and fiscal year 2024, achieving sustainable volume-led growth and strengthening its leadership position in the flavor industry [2][5][20] Financial Performance - For the fourth quarter of 2024, total net sales increased by 2.6%, with organic sales rising by 2% driven by volume and product mix [3][8] - The consumer segment saw a sales increase of 3.5%, while the Flavor Solutions segment experienced a 1.2% increase [3][11] - Earnings per share (EPS) for Q4 2024 was $0.80, a slight decrease from $0.81 in Q4 2023, while adjusted EPS was also $0.80 compared to $0.85 in the previous year [5][13] - For the fiscal year 2024, total net sales increased by 0.9%, with EPS rising to $2.92 from $2.52 in 2023 [4][18] Profitability Metrics - Gross profit for Q4 2024 was $722.2 million, reflecting a 3% increase year-over-year, with a gross profit margin of 40.2% [7][9] - Operating income for Q4 2024 was $306.2 million, up from $297.2 million in Q4 2023, while adjusted operating income was $307.8 million [10][17] - The fiscal year 2024 saw gross profit increase to $2,591 million, with a gross profit margin expansion of 90 basis points [16][19] Cash Flow and Dividends - Cash flow from operations for fiscal year 2024 was $922 million, down from $1.2 billion in 2023, attributed to increased working capital and higher incentive compensation payments [5][19] - The company authorized a 7% increase in its quarterly dividend, marking the 39th consecutive year of dividend increases [5] 2025 Financial Outlook - For fiscal year 2025, McCormick expects net sales growth of 0% to 2%, with adjusted operating income growth projected at 3% to 5% [20][21] - The company anticipates a 1% unfavorable impact from foreign currency exchange on sales and adjusted operating income [20][33] - Adjusted EPS for 2025 is projected to be between $3.03 and $3.08, reflecting continued investments in core categories to drive long-term growth [21][33]