McCormick(US:MKC) ZACKS·2025-03-25 18:20Core Insights - McCormick & Company, Incorporated (MKC) experienced a 5.1% decline in shares following disappointing first-quarter fiscal 2025 results, with earnings missing estimates and showing a year-over-year decline [1][2] Financial Performance - Adjusted earnings per share (EPS) were 60 cents, down from 63 cents in the previous year, and below the Zacks Consensus Estimate of 64 cents [2] - Total sales reached $1,605.5 million, unchanged from the previous year, but impacted by a 2% unfavorable currency effect [3] - Gross profit increased by $5 million to $604 million, with a gross profit margin of 37.6%, up 20 basis points, primarily due to cost savings from the Comprehensive Continuous Improvement (CCI) program [4] - Adjusted operating income fell by 5% to $225.2 million, with a 2% negative impact from currency fluctuations [5] Segment Performance - Consumer segment sales were $919 million, flat year-over-year, with organic sales up 1% driven by a 3% increase in volume and product mix, offset by a 2% decrease in pricing [6] - Flavor Solutions segment sales increased by 0.8% to $686 million, with organic sales climbing 3% due to a 2% rise in volume and product mix [7] Financial Health - As of the end of the quarter, McCormick had cash and cash equivalents of $102.8 million, long-term debt of $3,095.7 million, and total shareholders' equity of $5,449.7 million [8] - Net cash provided by operating activities was $115.5 million for the three months ended February 28, 2025 [8] Future Outlook - For fiscal 2025, McCormick anticipates net sales growth of flat to 2%, with adjusted operating income expected to grow by 3-5% [11][12] - Management projects adjusted EPS in the range of $3.03-$3.08, indicating a 3-5% increase from the previous year [13]