McCormick Reports Strong Quarter With Volume-Led Growth, Reaffirms Sales Outlook

Core Insights - McCormick & Company reported third-quarter results that exceeded analyst expectations, achieving its fifth consecutive quarter of volume-driven growth despite inflationary pressures and increased input costs [1] Financial Performance - The company posted adjusted earnings per share of $0.85 for the quarter ended August 31, surpassing analyst estimates of $0.82 [2] - Revenue reached $1.72 billion, slightly above the consensus of $1.71 billion, and represented a 2.7% increase from the prior year [2] - Organic sales grew by 2%, primarily driven by higher volumes [2] Segment Performance - The Consumer segment led the performance with a 3.8% sales increase, while the Flavor Solutions segment rose by 1.2% [3] - Adjusted operating income increased by 1.8% to $294 million from $288 million a year earlier, despite facing higher commodity and tariff costs [3] Future Outlook - For fiscal 2025, McCormick maintained its sales growth guidance of 0% to 2% but adjusted its earnings outlook to $3.00–$3.05 per share, compared to the analyst consensus of $3.04 [4] - The updated forecast reflects ongoing cost headwinds and additional tariffs introduced since August [4]