McCormick(US:MKC)2024-06-27 11:14Sales Performance - Consumer Segment - Americas Consumer net sales decreased by 1.6% in constant currency, with pricing investments of -1% and flat volume/mix[4,5] - EMEA Consumer net sales increased by 5%, or 3.9% in constant currency, driven by volume growth across categories and major markets[8,9] - APAC Consumer net sales decreased by 4.8%, or -0.9% in constant currency, with volume/mix declining due to the macro environment in China[12,13] Sales Performance - Flavor Solutions Segment - Americas Flavor Solutions net sales decreased by 0.2%, or -0.9% in constant currency, due to softness in QSR and packaged food volumes[18,19] - EMEA Flavor Solutions net sales decreased by 7.3%, or -8.2% in constant currency, including a 3% impact from the divestiture of the canning business[27,28] - APAC Flavor Solutions net sales increased by 5.9%, or 10.3% in constant currency, driven by customer promotions, limited-time offers, and new product innovation[31,32] Financial Highlights - The company's gross margin increased by 60 bps to 37.7% due to the Comprehensive Continuous Improvement (CCI) savings program[35] - Operating income increased by 6% to $234.1 million, while adjusted operating income was flat at $235.9 million[37] - Adjusted earnings per share increased by 15% to $0.69, driven by a decrease in the tax rate and an increase in unconsolidated income[44] Outlook - The company projects sales growth of -2% to 0%, or -1% to 1% in constant currency, for 2024[50] - Adjusted operating income is expected to increase by 3% to 5%, or 4% to 6% in constant currency[50] - Adjusted earnings per share are projected to be $2.80 to $2.85, representing a growth of 4% to 6%, or 5% to 7% in constant currency[50]