McCORMICK REPORTS THIRD QUARTER PERFORMANCE, REAFFIRMS STRONG SALES GROWTH, AND UPDATES 2025 PROFITABILITY OUTLOOK
McCormick (NYSE:MKC) reported third-quarter results for the period ended August 31, 2025 with net sales +3% and organic sales +2% (volume-led). Third-quarter operating income was $289M and adjusted operating income was $294M. Diluted EPS was $0.84 and adjusted EPS was $0.85. Gross profit margin contracted 130 bps year-over-year, pressured by higher commodity costs, tariffs, and capacity costs, partially offset by cost savings from the CCI program.
The company reaffirmed its fiscal 2025 sales growth outlook, updated operating income and EPS guidance to reflect rising commodity costs and incremental tariffs, and expects continued cash generation and shareholder returns.
McCormick (NYSE:MKC) ha riportato i risultati del terzo trimestre per il periodo terminato il 31 agosto 2025 con vendite nette +3% e vendite organiche +2% (guidate dal volume). L'utile operativo del terzo trimestre è stato di $289M e l'utile operativo rettificato è stato di $294M. L'EPS diluito è stato $0.84 e l'EPS rettificato è stato $0.85. Il margine di profitto lordo si è contratto di 130 bps anno su anno, pressato da costi delle materie prime più elevati, da dazi e costi di capacità, parzialmente compensati da risparmi sui costi dall'iniziativa CCI. L'azienda ha confermato le sue previsioni di crescita delle vendite per il 2025, aggiornato le previsioni di redditività operativa e EPS per riflettere i crescenti costi delle materie prime e tariffe incrementali, e si aspetta una continua generazione di liquidità e ritorni agli azionisti.
La società ha confermato le sue prospettive di crescita delle vendite per l'esercizio 2025, aggiornato il guidance operativo e EPS per riflettere l'aumento dei costi delle materie prime e tariffe incrementali, e si aspetta una generazione continua di cassa e ritorni agli azionisti.
McCormick (NYSE:MKC) presentó los resultados del tercer trimestre para el periodo terminado el 31 de agosto de 2025 con ventas netas +3% y ventas orgánicas +2% (impulsadas por volumen). El ingreso operativo del tercer trimestre fue de $289M y el ingreso operativo ajustado fue de $294M. Las ganancias por acción diluidas fueron de $0.84 y las ganancias por acción ajustadas fueron de $0.85. El margen de beneficio bruto se contrajo 130 bps año sobre año, afectado por costos de materias primas más altos, aranceles y costos de capacidad, en parte compensados por ahorros de costos del programa CCI. La empresa ratificó sus perspectivas de crecimiento de ventas para 2025, actualizó sus guías de ingresos operativos y EPS para reflejar mayores costos de materias primas y aranceles incrementales, y espera seguir generando efectivo y retornos a los accionistas.
맥코믹(McCormick, NYSE:MKC)은 2025년 8월 31일 종료된 기간의 3분기 실적을 발표했습니다. 순매출은 +3%, 유기매출은 +2%로 볼륨 주도였습니다. 3분기 영업이익은 $289M, 조정 영업이익은 $294M이었습니다. 희석된 주당순이익은 $0.84, 조정 주당순이익은 $0.85였습니다. 총이익률은 전년 대비 130 bps 감소했고, 원자재 비용 상승, 관세 및 용량 비용의 압박으로 하락했으며 CCI 프로그램의 비용 절감으로 부분적으로 상쇄되었습니다. 회사는 2025 회계연도 매출 성장 전망을 재확인했고, 원자재 비용 상승과 추가 관세를 반영하기 위해 영업이익 및 EPS 가이던스를 업데이트했으며, 지속적인 현금 창출과 주주 환원을 기대합니다.
McCormick (NYSE:MKC) a publié les résultats du troisième trimestre pour la période se terminant le 31 août 2025 avec des ventes nettes en hausse de 3 % et des ventes organiques en hausse de 2 % (principalement grâce au volume). Le résultat opérationnel du troisième trimestre s’élevait à 289 millions de dollars et le résultat opérationnel ajusté à 294 millions de dollars. Le BPA dilué était de 0,84 dollar et le BPA ajusté de 0,85 dollar. La marge brute a reculé de 130 points de base d'une année sur l'autre, pénalisée par des coûts des matières premières plus élevés, des tarifs et des coûts de capacité, partiellement compensés par les économies liées au programme CCI. L’entreprise a réaffirmé ses perspectives de croissance des ventes pour l’exercice 2025, ajusté ses prévisions d’exploitation et de BPA pour tenir compte de la hausse des coûts des matières premières et des tarifs additionnels, et s’attend à une génération de trésorerie et à des retours pour les actionnaires.
McCormick (NYSE:MKC) hat die Ergebnisse des dritten Quartals für den Zeitraum zum 31. August 2025 veröffentlicht, mit Nettoumsatzsteigerung von 3 % und organischem Umsatzwachstum von 2 % (volumengetrieben). Das operative Ergebnis des dritten Quartals betrug 289 Mio. USD und das bereinigte operative Ergebnis 294 Mio. USD. Verwässter Gewinn je Aktie betrug 0,84 USD und der bereinigte Gewinn je Aktie 0,85 USD. Die Bruttomarge schrumpfte gegenüber dem Vorjahr um 130 Basispunkte, belastet durch höhere Rohstoffkosten, Zölle und Kapazitätskosten, teils ausgeglichen durch Kosteneinsparungen aus dem CCI-Programm. Das Unternehmen bekräftigte seine Umsatzwachstumsprognose für das Geschäftsjahr 2025, aktualisierte die operativen Gewinn- und EPS-Guidance, um gestiegene Rohstoffkosten und zusätzliche Zölle zu berücksichtigen, und erwartet weitere Cash-Generierung sowie Rückkäufe an die Aktionäre.
McCormick (NYSE:MKC) أعلنت عن نتائج الربع الثالث للفترة المنتهية في 31 أغسطس 2025 مع ارتفاع صافي المبيعات 3% وارتفاع المبيعات العضوية 2% (مدفوعة بالحجم). بلغ دخل التشغيل للربع الثالث 289 مليون دولار والدخل التشغيلي المعدل 294 مليون دولار. كان ربحية السهم المخفف 0.84 دولار وربح السهم المعدل 0.85 دولار. تقلّص هامش الربح الإجمالي بمقدار 130 نقطة أساس على أساس سنوي، بسبب ارتفاع تكاليف السلع الأساسية والتعريفات وتكاليف السعة، جزئياً مع تعويض من وفورات التكلفة ضمن برنامج CCI. أكّدت الشركة مجدداً توقعاتها لنمو المبيعات للسنة المالية 2025، وقدّمت توجيهاتها الجديدة للربحية التشغيلية وEPS لتعكس الارتفاع في تكاليف المواد الأولية والتعريفات الإضافية، وتتوقع استمرار توليد النقد وتوزيعات للمساهمين.
麦考密克（NYSE:MKC） 公布截至 2025 年 8 月 31 日的第三季度业绩，净销售额增长 3%，有机销售额增长 2%（以产量为主导）。第三季度营业利润为 2.89 亿美元，调整后营业利润为 2.94 亿美元。摊薄后每股收益为 0.84 美元，调整后每股收益为 0.85 美元。毛利率同比收缩 130 个基点，受到原材料成本上升、关税及产能成本的压力影响，部分被 CCI 计划的成本节约所抵消。公司重申 2025 财年的销售增长前景，更新了反映原材料成本上升与新增关税的营业利润和每股收益指引，并预计将继续产生现金并回馈股东。
- None.
- None.
Insights
Modest volume-led growth offset by margin pressure from commodities and tariffs; guidance tightened modestly for fiscal
As a global flavor company, McCormick delivered third-quarter
Key dependencies and risks remain the trajectory of commodity costs, current tariffs and any additional trade actions; management explicitly bases the outlook only on tariffs currently in place. The company updated fiscal
Watch the near-term signals over the next two fiscal quarters: realized commodity cost trends, any new tariff announcements, and CCI savings run-rate versus planned brand and technology investments. Monitor adjusted operating income and adjusted EPS at each quarterly release for confirmation of the updated guide over the remainder of
-
Net Sales increased
3% in the third quarter and included a1% favorable impact from currency. Organic sales growth of2% was volume-led.
-
Operating income was
$289 million $287 million $294 million $288 million
-
Earnings per share was
$0.84 $0.83 $0.85 $0.83
- For fiscal year 2025, McCormick reaffirmed its sales growth outlook and updated operating income and earnings per share outlook to reflect rising commodity costs and incremental tariffs.
Chairman, President, and CEO's Remarks
Brendan M. Foley, Chairman, President, and CEO, stated, "Our third quarter results marked our fifth consecutive quarter of volume-led growth, reflecting our differentiation and the benefit of continued investments in our brands, expanded distribution, and innovation. As a result of the dynamic global trade environment, our gross margin was further pressured by rising costs; however, we continued to drive operating profit growth through the effective execution of our cost savings initiatives. We remain disciplined on actions within our control and agile in adapting to external dynamics, positioning McCormick for sustained long-term growth."
"As consumer trends evolve, demand for flavor remains strong. Our speed and agility in executing proven growth strategies enable us to capture the demand for flavor and value across all occasions and channels. Amid rising inflation from higher commodity costs and tariffs, we continue to invest in our growth plans, supported by our cost savings initiatives, which strengthen our resilience and differentiated fundamentals. Our year-to-date performance combined with our growth plans reinforce our confidence in achieving our updated outlook for 2025. We remain confident in the sustained momentum of our business and in our ability to drive shareholder value."
"Finally, I'd like to recognize McCormick employees worldwide. Their talent, dedication, and contributions are the driving force behind our momentum and success. We remain committed to advancing our power of people culture and cultivating the next generation of leaders and capabilities that will fuel our future success."
Third Quarter 2025 Results
Sales Metrics
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Third Quarter 2025 |
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As Reported |
|
Organic(1) |
||
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|
% Change |
|
Volume/ |
Price |
% Change |
|
Total Net Sales |
2.7 % |
|
1.2 % |
0.6 % |
1.8 % |
|
|
|
|
|
|
|
|
Total Consumer |
3.8 % |
|
2.2 % |
0.4 % |
2.6 % |
|
|
2.7 % |
|
2.7 % |
0.0 % |
2.7 % |
|
EMEA |
11.4 % |
|
1.6 % |
2.8 % |
4.4 % |
|
APAC |
0.0 % |
|
(0.6) % |
(0.2) % |
(0.8) % |
|
|
|
|
|
|
|
|
Total Flavor Solutions |
1.2 % |
|
(0.3) % |
0.9 % |
0.6 % |
|
|
0.1 % |
|
(1.3) % |
2.2 % |
0.9 % |
|
EMEA |
2.1 % |
|
(1.0) % |
(2.1) % |
(3.1) % |
|
APAC |
7.7 % |
|
9.0 % |
(2.7) % |
6.3 % |
|
|
|
(1) Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. For the third quarter of 2025, organic sales are equal to constant currency sales. |
Profitability Metrics
($ in millions except per share data)
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Third Quarter 2025 |
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As Reported |
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Adjusted |
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Q3 2025 |
vs. 2024 |
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Q3 2025 |
vs. 2024 |
|
|
|
|
|
Gross profit |
$ 645.1 |
(0.7) % |
|
$ 646.1 |
(0.6) % |
|
|
|
|
|
Gross profit margin |
37.4 % |
(130) bps |
|
37.5 % |
(120) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ 288.7 |
0.8 % |
|
$ 293.6 |
1.8 % |
|
|
|
|
|
Operating income margin |
16.7 % |
(40) bps |
|
17.0 % |
(20) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 225.5 |
1.1 % |
|
$ 229.1 |
2.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
$ 0.84 |
1.2 % |
|
$ 0.85 |
2.4 % |
|
|
|
|
Third Quarter 2025 Results
Net sales increased
- Consumer segment net sales increased
4% from the third quarter of 2024 to$973 million 1% favorable impact from currency. Organic sales increased3% , driven by volume and product mix. - Flavor Solutions segment net sales increased
1% from the third quarter of 2024 to$752 million 1% , driven by price.
Gross profit for the third quarter decreased by
Operating income was
- Consumer segment operating income, excluding special charges, increased
4% in the third quarter of 2025 compared to the year-ago period to$194 million 3% in constant currency. The increase was driven by higher sales and decreased SG&A expenses, partially offset by increased commodity costs and tariffs. - Flavor Solutions segment operating income, excluding special charges, decreased
2% in the third quarter of 2025 compared to the year-ago period to$100 million 2% decrease in constant currency was driven by higher commodity costs and tariffs, partially offset by pricing and decreased SG&A expenses.
Earnings per share was
Fiscal Year 2025 Financial Outlook
McCormick's fiscal 2025 outlook continues to reflect the Company's prioritized investments in key categories to sustain strong volume trends and drive long-term profitable growth while appreciating the current uncertainty of the consumer and macro environment. The Company's CCI program is continuing to fuel growth investments while also driving operating profit growth.
The Company's fiscal 2025 outlook reflects mitigation plans related to tariffs which are currently in place and have increased since August 1, 2025. The Company's mitigating actions include: sourcing plans supported by advanced analytics, cost savings initiatives, and revenue growth management. Due to the ongoing uncertainty around potential new
|
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Current Guide October 2025 |
|
Prior Guide June 2025 |
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Reported |
Constant |
|
Reported |
Constant |
|
Net sales growth |
|
|
|
|
|
|
Operating income |
|
|
|
|
|
|
Adjusted operating income |
|
|
|
|
|
|
Earnings per share (EPS) |
|
|
|
|
|
|
Adjusted EPS |
|
|
|
|
|
|
|
|
(1) Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency, and is expected to be a |
Current Guide - Expectations:
Net Sales:
- Total volume-led growth
- Gradual improvement in
China Consumer
Operating Income:
- Gross margin expansion impacted by increased commodity costs due to global trade uncertainty and tariffs currently in place.
- SG&A benefits from the Company's CCI program, inclusive of streamlining initiatives, partially offset by growth investments, including brand marketing and digital.
- Anticipate
$20 million
Earnings per Share:
- Operating income growth partially offset by:
- Tax rate of approximately
22% vs.20.5% in 2024. - High-single digit year-over-year decline in income from unconsolidated operations due to
U.S. dollar strengthening vs. Mexican peso partially offset by continued strength in McCormick deMexico's underlying performance.
- Tax rate of approximately
- Special charges expected to impact EPS by
$0.05
The Company expects foreign currency rates to unfavorably impact net sales by
For fiscal 2025, the Company expects strong cash flow driven by profit and working capital initiatives and anticipates returning a significant portion of cash flow to shareholders through dividends.
Non-GAAP Financial Measures
The following tables include financial measures of organic net sales, adjusted gross profit, adjusted gross profit margin, adjusted operating income, adjusted operating income margin, adjusted income tax expense, adjusted income tax rate, adjusted net income, and adjusted diluted earnings per share. These represent non-GAAP financial measures which are prepared as a complement to our financial results prepared in accordance with
Special charges - Special charges consist of expenses and income associated with certain actions undertaken by us to reduce fixed costs, simplify or improve processes, and improve our competitiveness. Included in special charges are transaction and integration costs.
We believe that these non-GAAP financial measures are important. The exclusion of the items noted above provides additional information that enables enhanced comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends.
These non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP; however, they should not be viewed as a substitute for, or superior to, GAAP results. Furthermore, these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, as they may calculate them differently than we do. We intend to continue providing these non-GAAP financial measures as part of our future earnings discussions, ensuring consistency in our financial reporting. A reconciliation of these non-GAAP financial measures to the related GAAP financial measures follows:
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(in millions except per share data) |
Three Months Ended |
|
Nine Months Ended |
||||
|
|
8/31/2025 |
|
8/31/2024 |
|
8/31/2025 |
|
8/31/2024 |
|
Gross profit |
$ 645.1 |
|
$ 649.9 |
|
$ 1,871.9 |
|
$ 1,868.8 |
|
Impact of special charges included in |
1.0 |
|
0.0 |
|
1.0 |
|
0.0 |
|
Adjusted gross profit |
$ 646.1 |
|
$ 649.9 |
|
$ 1,872.9 |
|
$ 1,868.8 |
|
Gross profit margin (1) |
37.4 % |
|
38.7 % |
|
37.5 % |
|
37.9 % |
|
Impact of special charges |
0.1 % |
|
0.0 % |
|
0.0 % |
|
0.0 % |
|
Adjusted gross profit margin (1) |
37.5 % |
|
38.7 % |
|
37.5 % |
|
37.9 % |
|
|
|
|
|
|
|
|
|
|
Operating income |
$ 288.7 |
|
$ 286.5 |
|
$ 759.7 |
|
$ 754.1 |
|
Impact of special charges |
4.9 |
|
1.9 |
|
17.7 |
|
7.9 |
|
Adjusted operating income |
$ 293.6 |
|
$ 288.4 |
|
$ 777.4 |
|
$ 762.0 |
|
% change versus year-ago period |
1.8 % |
|
|
|
2.0 % |
|
|
|
Operating income margin (2) |
16.7 % |
|
17.1 % |
|
15.2 % |
|
15.3 % |
|
Impact of special charges |
0.3 % |
|
0.1 % |
|
0.4 % |
|
0.2 % |
|
Adjusted operating income margin (2) |
17.0 % |
|
17.2 % |
|
15.6 % |
|
15.5 % |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
$ 39.3 |
|
$ 41.0 |
|
$ 130.2 |
|
$ 116.8 |
|
Impact of special charges |
1.3 |
|
0.6 |
|
4.3 |
|
2.1 |
|
Adjusted income tax expense |
$ 40.6 |
|
$ 41.6 |
|
$ 134.5 |
|
$ 118.9 |
|
Income tax rate (3) |
15.9 % |
|
16.7 % |
|
20.4 % |
|
18.4 % |
|
Impact of special charges |
0.2 % |
|
0.1 % |
|
0.1 % |
|
0.1 % |
|
Adjusted income tax rate (3) |
16.1 % |
|
16.8 % |
|
20.5 % |
|
18.5 % |
|
|
|
|
|
|
|
|
|
|
Net income |
$ 225.5 |
|
$ 223.1 |
|
$ 562.8 |
|
$ 573.3 |
|
Impact of special charges |
3.6 |
|
1.3 |
|
13.4 |
|
5.8 |
|
Adjusted net income |
$ 229.1 |
|
$ 224.4 |
|
$ 576.2 |
|
$ 579.1 |
|
% change versus year-ago period |
2.1 % |
|
|
|
(0.5) % |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – diluted |
$ 0.84 |
|
$ 0.83 |
|
$ 2.09 |
|
$ 2.13 |
|
Impact of special charges |
0.01 |
|
0.00 |
|
0.05 |
|
0.02 |
|
Adjusted earnings per share – diluted |
$ 0.85 |
|
$ 0.83 |
|
$ 2.14 |
|
$ 2.15 |
|
% change versus year-ago period |
2.4 % |
|
|
|
(0.5) % |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Gross profit margin, impact of special charges, and adjusted gross profit margin are calculated as gross profit, impact of special charges, and adjusted gross profit as a percentage of net sales for each period presented. |
|
(2) |
Operating income margin, impact of special charges, and adjusted operating income margin are calculated as operating income, impact of special charges, and adjusted operating income as a percentage of net sales for each period presented. |
|
(3) |
Income tax rate is calculated as income tax expense as a percentage of income from consolidated operations before income taxes. Adjusted income tax rate is calculated as adjusted income tax expense as a percentage of income from consolidated operations before income taxes excluding special charges of |
Because we are a multi-national company, we are subject to variability of our reported
We provide organic net sales growth rates for our consolidated net sales and segment net sales. We believe that organic net sales growth rates provide useful information to investors because they provide transparency to underlying performance in our net sales by excluding the effect that foreign currency exchange rate fluctuations, acquisitions, and divestitures, as applicable, have on year-to-year comparability. A reconciliation of these measures from reported net sales growth rates, the relevant GAAP measures, are included in the tables set forth below.
Percentage changes in sales and adjusted operating income expressed on a constant currency basis are presented excluding the impact of foreign currency exchange. To present this information for historical periods, current period results for entities reporting in currencies other than the
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Three Months Ended August 31, 2025 |
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|
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Percentage Change |
Impact of Foreign |
Percentage Change on |
|
Total Net Sales |
2.7 % |
0.9 % |
1.8 % |
|
|
|
|
|
|
Total Consumer |
3.8 % |
1.2 % |
2.6 % |
|
|
2.7 % |
0.0 % |
2.7 % |
|
EMEA |
11.4 % |
7.0 % |
4.4 % |
|
APAC |
0.0 % |
0.8 % |
(0.8) % |
|
|
|
|
|
|
Total Flavor Solutions |
1.2 % |
0.6 % |
0.6 % |
|
|
0.1 % |
(0.8) % |
0.9 % |
|
EMEA |
2.1 % |
5.2 % |
(3.1) % |
|
APAC |
7.7 % |
1.4 % |
6.3 % |
|
|
Nine Months Ended August 31, 2025 |
||
|
|
Percentage Change |
Impact of Foreign |
Percentage Change on |
|
Total Net Sales |
1.3 % |
(0.5) % |
1.8 % |
|
|
|
|
|
|
Total Consumer |
2.2 % |
(0.1) % |
2.3 % |
|
|
1.6 % |
(0.3) % |
1.9 % |
|
EMEA |
5.1 % |
1.3 % |
3.8 % |
|
APAC |
1.1 % |
(0.9) % |
2.0 % |
|
|
|
|
|
|
Total Flavor Solutions |
0.2 % |
(1.0) % |
1.2 % |
|
|
(0.1) % |
(2.0) % |
1.9 % |
|
EMEA |
(2.5) % |
2.1 % |
(4.6) % |
|
APAC |
7.7 % |
(0.4) % |
8.1 % |
|
|
|
|
Three Months Ended August 31, 2025 |
||||
|
|
|
|
Percentage Change |
|
Impact of Foreign |
|
Percentage Change on |
|
Adjusted operating income |
|
|
|
|
|
|
|
|
Consumer segment |
|
|
3.7 % |
|
0.5 % |
|
3.2 % |
|
Flavor Solutions segment |
|
|
(1.8) % |
|
(0.2) % |
|
(1.6) % |
|
Total adjusted operating income |
|
|
1.8 % |
|
0.2 % |
|
1.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended August 31, 2025 |
||||
|
|
|
|
Percentage Change |
|
Impact of Foreign |
|
Percentage Change on |
|
Adjusted operating income |
|
|
|
|
|
|
|
|
Consumer segment |
|
|
(1.6) % |
|
(0.2) % |
|
(1.4) % |
|
Flavor Solutions segment |
|
|
9.5 % |
|
(2.5) % |
|
12.0 % |
|
Total adjusted operating income |
|
|
2.0 % |
|
(1.0) % |
|
3.0 % |
|
|
|
|
|
|
|
|
|
To present the percentage change in projected 2025 net sales, adjusted operating income, and adjusted earnings per share (diluted) on a constant currency basis, the projected local currency net sales, adjusted operating income, and adjusted net income for entities reporting in currencies other than the
|
|
Projection for the Year Ending November 30, 2025 |
|
Percentage change in net sales |
|
|
Impact of unfavorable foreign currency exchange |
1 % |
|
Percentage change in net sales in constant currency |
|
|
|
|
|
Percentage change in adjusted operating income |
|
|
Impact of unfavorable foreign currency exchange |
1 % |
|
Percentage change in adjusted operating income in |
|
|
|
|
|
Percentage change in adjusted earnings per share — |
|
|
Impact of unfavorable foreign currency exchange |
2 % |
|
Percentage change in adjusted earnings per share in |
|
The following provides a reconciliation of our estimated earnings per share to adjusted earnings per share for 2025 and actual results for 2024:
|
|
Year Ended |
||
|
|
2025 Projection |
|
11/30/24 |
|
Earnings per share - diluted |
|
|
$ 2.92 |
|
Impact of special charges |
0.05 |
|
0.03 |
|
Adjusted earnings per share - diluted |
|
|
$ 2.95 |
Live Webcast
As previously announced, McCormick will hold a conference call with analysts today at 8:00 a.m. ET. A live audio webcast of the call along with the accompanying presentation materials will be available on the McCormick website, ir.mccormick.com.
Forward-Looking Information
Certain information contained in this release, 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 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "believe," "plan," and similar expressions. These statements may relate to: general economic and industry conditions, including consumer spending rates, recessions, interest rates, and availability of capital; expectations regarding sales growth potential in various geographies and markets, including the impact of brand marketing support, product innovation, and customer, channel, category, heat platform, and e-commerce expansion; expected trends in net sales, earnings performance, and other financial measures; the expected impact of pricing actions on the Company's results of operations, including our sales volume and mix as well as gross margins; the expected impact of the inflationary cost environment on our business; the anticipated effects of factors affecting our supply chain, including the availability and prices of commodities and other supply chain resources such as raw materials, packaging, labor, and transportation; the potential impact of trade policies, including new tariffs; the expected impact of productivity improvements, including those associated with our Comprehensive Continuous Improvement (CCI) program and the Global Business Services operating model initiative; the ability to identify, attract, hire, retain, and develop qualified personnel and the next generation of leaders; the impact of ongoing conflicts, including those between
These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by factors such as: the Company's ability to drive revenue growth; the Company's ability to increase pricing to offset, or partially offset, inflationary pressures on the cost of our products; damage to the Company's reputation or brand name; loss of brand relevance; increased private label use; the Company's ability to offset cost pressures or business impacts related to trade policies, including new tariffs; the Company's ability to drive productivity improvements, including those related to our CCI program and other streamlining actions; product quality, labeling, or safety concerns; negative publicity about our products; actions by, and the financial condition of, competitors and customers; the longevity of mutually beneficial relationships with our large customers; the ability to identify, interpret and react to changes in consumer preference and demand; business interruptions due to natural disasters, unexpected events or public health crises; issues affecting the Company's supply chain and procurement of raw materials, including fluctuations in the cost and availability of raw and packaging materials; labor shortage, turnover and labor cost increases; the impact of the ongoing conflicts between
Actual results could differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
About McCormick
McCormick & Company, Incorporated is a global leader in flavor. With over
Founded in 1889 and headquartered in
To learn more, visit: www.mccormickcorporation.com or follow McCormick & Company on Instagram and LinkedIn.
For information contact:
Investor Relations:
Faten Freiha - faten_freiha@mccormick.com
Global Communications:
Lori Robinson - lori_robinson@mccormick.com
(Financial tables follow)
|
Third Quarter Report |
|
McCormick & Company, Incorporated |
||||||
|
|
|
|
|
|
|
|
|
|
|
Consolidated Income Statement (Unaudited) |
|
|
|
|
|
|
|
|
|
(In millions except per-share data) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
||||
|
|
|
August 31, |
|
August 31, |
|
August 31, |
|
August 31, |
|
Net sales |
|
$ 1,724.9 |
|
$ 1,679.8 |
|
$ 4,989.9 |
|
$ 4,925.7 |
|
Cost of goods sold |
|
1,079.8 |
|
1,029.9 |
|
3,118.0 |
|
3,056.9 |
|
Gross profit |
|
645.1 |
|
649.9 |
|
1,871.9 |
|
1,868.8 |
|
Gross profit margin |
|
37.4 % |
|
38.7 % |
|
37.5 % |
|
37.9 % |
|
Selling, general and administrative expense |
|
352.5 |
|
361.5 |
|
1,095.5 |
|
1,106.8 |
|
Special charges |
|
3.9 |
|
1.9 |
|
16.7 |
|
7.9 |
|
Operating income |
|
288.7 |
|
286.5 |
|
759.7 |
|
754.1 |
|
Interest expense |
|
50.2 |
|
53.5 |
|
149.7 |
|
156.7 |
|
Other income, net |
|
9.4 |
|
13.2 |
|
29.0 |
|
36.7 |
|
Income from consolidated operations before income taxes |
|
247.9 |
|
246.2 |
|
639.0 |
|
634.1 |
|
Income tax expense |
|
39.3 |
|
41.0 |
|
130.2 |
|
116.8 |
|
Net income from consolidated operations |
|
208.6 |
|
205.2 |
|
508.8 |
|
517.3 |
|
Income from unconsolidated operations |
|
16.9 |
|
17.9 |
|
54.0 |
|
56.0 |
|
Net income |
|
$ 225.5 |
|
$ 223.1 |
|
$ 562.8 |
|
$ 573.3 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – basic |
|
$ 0.84 |
|
$ 0.83 |
|
$ 2.10 |
|
$ 2.13 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – diluted |
|
$ 0.84 |
|
$ 0.83 |
|
$ 2.09 |
|
$ 2.13 |
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding – basic |
|
268.6 |
|
268.6 |
|
268.5 |
|
268.5 |
|
Average shares outstanding – diluted |
|
269.3 |
|
269.7 |
|
269.4 |
|
269.6 |
|
Third Quarter Report |
McCormick & Company, Incorporated |
|||
|
|
|
|
|
|
|
Consolidated Balance Sheet (Unaudited) |
|
|
|
|
|
(In millions) |
|
|
|
|
|
|
|
August 31, 2025 |
|
November 30, 2024 |
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ 94.9 |
|
$ 186.1 |
|
Trade accounts receivable, net |
|
668.7 |
|
587.4 |
|
Inventories, net |
|
1,323.6 |
|
1,239.9 |
|
Prepaid expenses and other current assets |
|
136.8 |
|
125.6 |
|
Total current assets |
|
2,224.0 |
|
2,139.0 |
|
Property, plant and equipment, net |
|
1,419.8 |
|
1,413.0 |
|
Goodwill |
|
5,314.2 |
|
5,227.5 |
|
Intangible assets, net |
|
3,302.5 |
|
3,318.9 |
|
Other long-term assets |
|
986.5 |
|
971.9 |
|
Total assets |
|
$ 13,247.0 |
|
$ 13,070.3 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Short-term borrowings and current portion of long-term debt |
|
$ 1,253.4 |
|
$ 748.3 |
|
Trade accounts payable |
|
1,196.8 |
|
1,238.1 |
|
Other accrued liabilities |
|
669.8 |
|
896.4 |
|
Total current liabilities |
|
3,120.0 |
|
2,882.8 |
|
Long-term debt |
|
3,104.9 |
|
3,593.6 |
|
Deferred taxes |
|
822.1 |
|
840.5 |
|
Other long-term liabilities |
|
416.4 |
|
436.6 |
|
Total liabilities |
|
7,463.4 |
|
7,753.5 |
|
Shareholders' equity |
|
|
|
|
|
Common stock |
|
2,272.0 |
|
2,237.2 |
|
Retained earnings |
|
3,841.9 |
|
3,545.0 |
|
Accumulated other comprehensive loss |
|
(361.1) |
|
(491.2) |
|
Total McCormick shareholders' equity |
|
5,752.8 |
|
5,291.0 |
|
Non-controlling interests |
|
30.8 |
|
25.8 |
|
Total shareholders' equity |
|
5,783.6 |
|
5,316.8 |
|
Total liabilities and shareholders' equity |
|
$ 13,247.0 |
|
$ 13,070.3 |
|
Third Quarter Report |
|
McCormick & Company, Incorporated |
||
|
|
|
|
|
|
|
Consolidated Cash Flow Statement (Unaudited) |
|
|
|
|
|
(In millions) |
|
|
|
|
|
|
|
Nine Months Ended |
||
|
|
|
August 31, 2025 |
|
August 31, 2024 |
|
Operating activities |
|
|
|
|
|
Net income |
|
$ 562.8 |
|
$ 573.3 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
172.1 |
|
157.5 |
|
Stock-based compensation |
|
37.3 |
|
39.9 |
|
Deferred income tax expense (benefit) |
|
(15.8) |
|
(37.2) |
|
Income from unconsolidated operations |
|
(54.0) |
|
(56.0) |
|
Changes in operating assets and liabilities |
|
|
|
|
|
Trade accounts receivable |
|
(51.9) |
|
(72.2) |
|
Inventories |
|
(26.0) |
|
(108.9) |
|
Trade accounts payable |
|
(62.5) |
|
112.3 |
|
Other assets and liabilities |
|
(181.2) |
|
(202.1) |
|
Dividends from unconsolidated affiliates |
|
39.4 |
|
56.6 |
|
Net cash flow provided by operating activities |
|
420.2 |
|
463.2 |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Acquisition of business |
|
(34.1) |
|
— |
|
Capital expenditures (including software) |
|
(138.1) |
|
(189.3) |
|
Other investing activities |
|
— |
|
0.2 |
|
Net cash flow used in investing activities |
|
(172.2) |
|
(189.1) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Short-term borrowings, net |
|
13.2 |
|
908.6 |
|
Long-term debt borrowings |
|
2.4 |
|
— |
|
Long-term debt repayments |
|
(15.7) |
|
(752.8) |
|
Proceeds from exercised stock options |
|
15.1 |
|
12.8 |
|
Taxes withheld and paid on employee stock awards |
|
(13.2) |
|
(8.9) |
|
Common stock acquired by purchase |
|
(29.2) |
|
(29.0) |
|
Dividends paid |
|
(362.2) |
|
(338.3) |
|
Other financing activities |
|
11.3 |
|
1.7 |
|
Net cash flow used in financing activities |
|
(378.3) |
|
(205.9) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
39.1 |
|
(34.0) |
|
Increase (decrease) in cash and cash equivalents |
|
(91.2) |
|
34.2 |
|
Cash and cash equivalents at beginning of period |
|
186.1 |
|
166.6 |
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ 94.9 |
|
$ 200.8 |
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SOURCE McCormick & Company, Incorporated
FAQ
What were McCormick (MKC) third-quarter 2025 net sales and organic growth?
How did McCormick (MKC) report profitability for Q3 2025?
Why did McCormick (MKC) say gross margin contracted in Q3 2025?
Did McCormick (MKC) change its fiscal 2025 guidance on October 7, 2025?
How will tariffs and currency affect McCormick's 2025 results?
