Business Update, Financial Results, and Outlook 1Q 2026 I March 31, 2026 McCormick & Company, Inc. The following slides accompany a March 31, 2026 earnings release conference call. This information should be read in conjunction with the press release issued on that date. Forward-looking Information Certain information contained in this presentation, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges, including trans ...

McCormick & Company, Inc. CAGNY I February 17, 2026 Forward-looking Information Certain information contained in this presentation, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges including transaction and integration expenses, acquisitions, brand marketing support, volume and product mix, income tax expense, and the impact of foreign currency rates are "forward-looking statements" within the meaning of Section 2 ...

Financial Data and Key Metrics Changes - In the first quarter, total organic sales increased by 2%, primarily driven by volume and product mix growth, partially offset by pricing [9][43] - Adjusted operating income declined by 5%, with a 3% decrease on a constant currency basis, primarily due to increased SG&A expenses [50][52] - First quarter adjusted earnings per share was $0.60 compared to $0.63 for the same period last year [54] Business Line Data and Key Metrics Changes - In the Global Consumer segment, organic sales increased by 1%, with a 3% volume growth offset by a 2% impact from pricing investments [44] - The Flavor Solutions segment saw organic sales growth of 3%, driven by a 2% volume increase and a 1% contribution from price [47] - In the Americas, Flavor Solutions organic sales increased by 4%, reflecting a strong performance with faster-growing flavor customers [48] Market Data and Key Metrics Changes - In EMEA, consumer organic sales grew by 4%, driven by a 2% increase in volume and a 2% increase in price [45] - Asia Pacific region saw consumer organic sales increase by 3%, with a 2% volume increase and a 1% contribution from price [46] - Flavor Solutions organic sales in Asia Pacific increased by 15%, with volume growth of 16%, driven by QSR customer promotions and new products [49] Company Strategy and Development Direction - The company remains growth-oriented, leveraging demand for flavor and the strength of its brands, with a focus on innovative brand marketing and category management initiatives [6][20] - The strategy includes expanding presence in growing channels such as mass, club, and e-commerce, while aligning with consumer trends towards healthier eating [20][21] - The company plans to continue investing in brand marketing and technology to drive volume growth and maintain competitive positioning [37][64] Management's Comments on Operating Environment and Future Outlook - Management noted increasing consumer uncertainty and concern over inflation, impacting consumer sentiment, particularly among lower-income consumers [15][16] - The company expects to deliver total volume growth across both segments for the year, with organic net sales growth projected between 1% and 3% [62][64] - Management remains confident in achieving the 2025 financial outlook, supported by strong sales performance and strategic investments [41][67] Other Important Information - The company plans to offset costs related to U.S. import tariffs on China with cost savings and targeted price adjustments [59][60] - Cash flow from operations for the first quarter was $116 million, down from $138 million in the previous year, primarily due to higher cash used for working capital [55][56] - The company is committed to maintaining a strong investment-grade rating while delivering strong cash flow in 2025 [57] Q&A Session Summary Question: Operating profit decline in Consumer segment - Management acknowledged the decline in operating profit was anticipated due to timing shifts in stock-based compensation and brand investments, but remains confident in full-year guidance [75][76][81] Question: Pricing dynamics in Americas Consumer business - Management indicated that pricing in the Americas is expected to be flat going forward, with some incremental pricing adjustments in EMEA to address commodity pressures [87][93] Question: Growth in Flavor Solutions and customer dynamics - Management highlighted strong performance from high-growth customers and QSRs, which offset weakness from larger CPG customers [103][110] Question: Reformulation efforts in response to consumer trends - Management noted an uptick in reformulation activity among customers, aligning with health and wellness trends, but emphasized that McCormick's portfolio has minimal use of artificial colors [111][113] Question: Key tariff risks and actions - Management confirmed that known tariffs on China are accounted for in forecasts, and they are prepared to manage potential future tariff impacts [117][120]