McCormick(US:MKC) Prnewswire·2025-10-07 10:30Core Insights - McCormick & Company reported a 3% increase in net sales for Q3 2025, driven by a 2% organic sales growth, with a favorable currency impact of 1% [5][6][13] - The company reaffirmed its sales growth outlook for fiscal 2025 while updating its operating income and earnings per share outlook due to rising commodity costs and tariffs [6][10][11] Financial Performance - Total net sales for Q3 2025 reached $1.725 billion, compared to $1.680 billion in Q3 2024, reflecting a 3% year-over-year increase [36] - Gross profit decreased by $5 million to $645.1 million, with a gross profit margin of 37.4%, down 130 basis points from the previous year [4][7] - Operating income for Q3 2025 was $288.7 million, a slight increase of 0.8% from $286.5 million in Q3 2024 [4][8] - Earnings per share (EPS) for Q3 2025 was $0.84, up from $0.83 in the same period last year, while adjusted EPS was $0.85 compared to $0.83 [6][8] Segment Performance - The Consumer segment saw a 4% increase in net sales to $973 million, with organic sales growth of 3% driven by volume and product mix [13] - The Flavor Solutions segment experienced a 1% increase in net sales to $752 million, with organic sales growth of 1% primarily from price increases [13][14] Outlook for Fiscal Year 2025 - The company expects net sales growth of 0% to 2% and adjusted operating income growth of 2% to 4% for fiscal 2025, with adjusted EPS projected to be between $3.00 and $3.05 [11][27] - McCormick's outlook incorporates the impact of current tariffs and anticipates a 1% unfavorable impact from foreign currency exchange rates [10][12] Strategic Initiatives - McCormick continues to invest in its Comprehensive Continuous Improvement (CCI) program, which aims to drive growth while managing costs effectively [9][15] - The company is focused on adapting to consumer trends and maintaining strong demand for flavor products across various channels [2][6]