STOCK TITAN

McCormick & Company is Advancing its Leadership and Differentiation in Flavor

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags

McCormick & Company (NYSE: MKC) held an Investor Day at its Global Headquarters, where it reaffirmed its 2024 outlook and shared long-term growth objectives through 2028. The company expects to achieve the mid to high-end of its projected Net Sales growth range and the high-end of adjusted earnings per share range for 2024. Looking ahead to 2028, McCormick targets annual Net Sales of at least $8 billion, with long-term growth objectives of 4-6% for Net Sales, 7-9% for Operating Income, and 9-11% for Earnings Per Share on a compound annual growth rate basis, excluding acquisitions.

McCormick & Company (NYSE: MKC) ha tenuto una Giornata per Investitori presso la sua Sede Globale, dove ha confermato le sue previsioni per il 2024 e ha condiviso gli obiettivi di crescita a lungo termine fino al 2028. L'azienda prevede di raggiungere la parte medio-alta del suo intervallo di crescita delle Vendite nette stimato e la parte alta dell'intervallo degli utili per azione rettificati per il 2024. Guardando al 2028, McCormick punta a vendite nette annuali di almeno 8 miliardi di dollari, con obiettivi di crescita a lungo termine del 4-6% per le Vendite nette, del 7-9% per l'Utilizzo operativo e del 9-11% per gli Utili per azione su base di tasso di crescita annuale composto, escludendo le acquisizioni.

McCormick & Company (NYSE: MKC) celebró un Día del Inversor en su Sede Global, donde reafirmó su perspectiva para 2024 y compartió objetivos de crecimiento a largo plazo hasta 2028. La empresa espera alcanzar el rango medio-alto de su proyección de crecimiento de Ventas Netas y el extremo alto del rango de ganancias ajustadas por acción para 2024. De cara a 2028, McCormick tiene como objetivo alcanzar Ventas Netas anuales de al menos 8 mil millones de dólares, con objetivos de crecimiento a largo plazo del 4-6% para Ventas Netas, del 7-9% para Ingresos Operativos y del 9-11% para Ganancias por Acción sobre una base de tasa de crecimiento anual compuesto, excluyendo adquisiciones.

맥코믹 & 컴퍼니 (NYSE: MKC)는 글로벌 본사에서 투자자 날 행사를 개최하며 2024년 전망을 재확인하고 2028년까지의 장기 성장 목표를 공유했습니다. 회사는 2024년 순매출 성장 범위의 중상위 범위와 조정 주당 순이익 범위의 상위 범위를 달성할 것으로 예상하고 있습니다. 2028년을 바라보며, 맥코믹은 연간 순매출 80억 달러 이상을 목표로 하고 있으며, 순매출에 대해 4-6%, 운영 수익에 대해 7-9%, 주당 순이익에 대해 9-11%의 장기 성장 목표를 설정하고 있습니다. 여기에는 인수 제외한 연평균 성장률 기준이 포함됩니다.

McCormick & Company (NYSE: MKC) a tenu une journée investisseurs à son siège mondial, où elle a réaffirmé ses prévisions pour 2024 et partagé ses objectifs de croissance à long terme jusqu'en 2028. L'entreprise s'attend à atteindre le bas à haut de sa fourchette de croissance des ventes nettes projetées et le haut de la fourchette des bénéfices ajustés par action pour 2024. En regardant vers 2028, McCormick vise des ventes nettes annuelles d'au moins 8 milliards de dollars, avec des objectifs de croissance à long terme de 4 à 6 % pour les ventes nettes, de 7 à 9 % pour le résultat d'exploitation et de 9 à 11 % pour les bénéfices par action sur une base de taux de croissance annuel composé, hors acquisitions.

McCormick & Company (NYSE: MKC) hat einen Investorentag in seiner globalen Zentrale abgehalten, wo das Unternehmen seine Prognosen für 2024 bekräftigte und langfristige Wachstumsziele bis 2028 teilte. Das Unternehmen erwartet, dass es im Jahr 2024 den mittleren bis oberen Bereich seiner prognostizierten Nettoumsatzwachstumsquote sowie den oberen Bereich der angepassten Erträge pro Aktie erreichen wird. Blicken wir auf 2028, strebt McCormick jährliche Nettoumsätze von mindestens 8 Milliarden US-Dollar an, mit langfristigen Wachstumszielen von 4-6% für Nettoumsätze, 7-9% für das Betriebsergebnis und 9-11% für den Gewinn pro Aktie auf Basis einer jährlichen Wachstumsrate, ohne Akquisitionen.

Positive
  • Expected to achieve high-end of 2024 earnings per share guidance
  • Projected volume growth aligned with organic long-term objectives for 2025
  • Targeting minimum $8 billion annual Net Sales by 2028
  • Anticipates margin improvement and increased profitability growth rates
Negative
  • None.

Insights

McCormick's investor day presentation reveals a solid financial trajectory with ambitious growth targets through 2028. The company's commitment to reaching $8 billion in annual net sales by 2028 represents significant expansion from current levels. Their projected compound annual growth rates of 4-6% for net sales, 7-9% for operating income and 9-11% for EPS demonstrate a balanced approach to growth and profitability.

The focus on flavor differentiation rather than calorie competition presents a unique market position. The company's confidence in achieving 2024 targets at the higher end of guidance ranges suggests strong near-term execution. While these growth targets are at the lower end of their long-term objectives, they're notably projected without factoring in potential acquisitions, indicating possible upside through M&A activity.

The Company Reaffirmed its 2024 Guidance and Provided Expectations for 2028

HUNT VALLEY, Md., Oct. 23, 2024 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, yesterday held an Investor Day at the company's Global Headquarters in Hunt Valley, Maryland. Brendan M. Foley, President and CEO, along with members of McCormick's leadership team shared plans to drive sustainable growth by leveraging its competitive advantages and successfully executing on its proven strategies.  

Investor Day Financial Highlights

  • McCormick reaffirmed all components of its 2024 Outlook which was previously announced on October 1, 2024 during its earnings call. The Company anticipates achieving the mid to high-end of its projected Net Sales growth range and the high-end of its adjusted earnings per share range for 2024.

  • McCormick expects 2025 to be a year of continued momentum supported by the effectiveness of its 2024 prioritized investments. The Company anticipates volume growth in-line with its organic long-term growth objective. The Company also expects to drive margin improvement and profitability growth rates closer to its long-term objectives.

  • McCormick reaffirmed its long-term growth objectives for Net Sales of 4% to 6%, Operating Income of 7% to 9%, and Earnings Per Share of 9% to 11%. The Company expects to achieve these objectives, at the low end, on a compounded annual growth rate basis over the five-year period ending 2028, without the benefit of acquisitions. The Company expects to reach at least $8 billion in annual Net Sales by 2028.

Brendan M. Foley, President and CEO, stated "McCormick is flavor. It is our history, and it is our future. Our business is differentiated from others in the industry as we do not compete for calories, we flavor them. We have robust plans that leverage the demand for flavor and the strength of our brands. We are increasing our investments in the core categories that drive the greatest value for McCormick.

Our strategies have proven to be effective by driving growth and compounding that growth over the years.  It takes a great organization, a strong culture of growth, and a great leadership team to deliver performance. I am confident we have the right leadership team in place and engaged employees globally to deliver on our long-term objectives with industry leading performance."

Forward-Looking Information

Certain statements contained in this release, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges, 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" and "plan" and similar expressions. These statements may relate to: general economic and industry conditions, including  consumer spending rates, interest rates, and availability of capital; expectations regarding our long-term constant currency growth in sales, adjusted operating income, and adjusted earnings per share; expectations regarding sales growth potential in various geographies and markets, including the impact from brand marketing support, product innovation, and customer, channel, category, heat platform and e-commerce expansion; expected trends in net sales and 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 expected impact of factors affecting our supply chain, including the availability and prices of commodities and other supply chain resources including raw materials, packaging, labor, energy, and transportation; the expected impact of productivity improvements, and cost savings, including those associated with our CCI and GOE programs and Global Business Services operating model initiative; the ability to identify, attract, hire, retain and develop qualified personnel and develop the next generation of leaders; the impact of the ongoing conflicts between Russia and Ukraine, Israel and Hamas, and in the Red Sea, including the potential for broader economic disruption; expected working capital improvements; the expected timing and costs of implementing our business transformation initiative, which includes the implementation of a global enterprise resource planning (ERP) system; the expected impact of accounting pronouncements; the expectations of pension and postretirement plan contributions and anticipated charges associated with those plans; the holding period and market risks associated with financial instruments; the impact of foreign exchange fluctuations; the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing; the anticipated sufficiency of future cash flows to enable the payments of interest and repayment of short- and long-term debt, working capital needs, planned capital expenditures, quarterly dividends and our ability to obtain additional short- and long-term financing or issue additional debt securities; and expectations regarding purchasing shares of McCormick's common stock under the existing repurchase authorization.

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 drive productivity improvements, including those related to our CCI program and streamlining actions, including our GOE program; 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 Russia and Ukraine, Israel and Hamas, and in the Red Sea, including the potential for broader economic disruption; government regulation, and changes in legal and regulatory requirements and enforcement practices; the lack of successful acquisition and integration of new businesses; global economic and financial conditions generally, availability of financing, interest and inflation rates, and the imposition of tariffs, quotas, trade barriers and other similar restrictions; foreign currency fluctuations; the effects of our amount of outstanding indebtedness and related level of debt service as well as the effects that such debt service may have on the Company's ability to borrow or the cost of any such additional borrowing, our credit rating, and our ability to react to certain economic and industry conditions; impairments of indefinite-lived intangible assets; assumptions we have made regarding the investment return on retirement plan assets, and the costs associated with pension obligations; the stability of credit and capital markets; risks associated with the Company's information technology systems, including the threat of data breaches and cyber-attacks; the Company's inability to successfully implement our business transformation initiative; fundamental changes in tax laws; including interpretations and assumptions we have made, and guidance that may be issued, and volatility in our effective tax rate; climate change; Environmental, Social and Governance (ESG) matters; infringement of intellectual property rights, and those of customers; litigation, legal and administrative proceedings; the Company's inability to achieve expected and/or needed cost savings or margin improvements; negative employee relations; and other risks described in the Company's filings with the Securities and Exchange Commission.

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 $6.5 billion in annual sales across 150 countries and territories, we manufacture, market, and distribute herbs, spices, seasonings, condiments and flavors to the entire food and beverage industry including retailers, food manufacturers and foodservice businesses. Our most popular brands with trademark registrations include McCormick, French's, Frank's RedHot, Stubb's, OLD BAY, Lawry's, Zatarain's, Ducros, Vahiné, Cholula, Schwartz, Kamis, DaQiao, Club House, Aeroplane, Gourmet Garden, FONA and Giotti. The breadth and reach of our portfolio uniquely position us to capitalize on the consumer demand for flavor in every sip and bite, through our products and our customers' products. We operate in two segments, Consumer and Flavor Solutions, which complement each other and reinforce our differentiation. The scale, insights and technology that we leverage from both segments are meaningful in driving sustainable growth.

Founded in 1889 and headquartered in Hunt Valley, Maryland USA, McCormick is guided by our principles and committed to our Purpose – To Stand Together for the Future of Flavor. McCormick envisions A World United by Flavor where healthy, sustainable and delicious go hand in hand.

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

 

Cision View original content:https://www.prnewswire.com/news-releases/mccormick--company-is-advancing-its-leadership-and-differentiation-in-flavor-302284546.html

SOURCE McCormick & Company, Incorporated

FAQ

What are McCormick's (MKC) long-term growth objectives through 2028?

McCormick targets Net Sales growth of 4-6%, Operating Income growth of 7-9%, and Earnings Per Share growth of 9-11% on a compound annual growth rate basis through 2028.

What is McCormick's (MKC) revenue target for 2028?

McCormick expects to reach at least $8 billion in annual Net Sales by 2028, without including potential acquisitions.

What is McCormick's (MKC) outlook for 2024?

McCormick expects to achieve the mid to high-end of its projected Net Sales growth range and the high-end of its adjusted earnings per share range for 2024.

What are McCormick's (MKC) expectations for 2025?

McCormick expects 2025 to show continued momentum with volume growth in-line with organic long-term objectives, along with margin improvement and increased profitability growth rates.

McCormick & Company, Incorporated Non-VTG CS

NYSE:MKC

MKC Rankings

MKC Latest News

MKC Stock Data

20.92B
264.96M
0.02%
88.11%
1.84%
Packaged Foods
Miscellaneous Food Preparations & Kindred Products
Link
United States of America
HUNT VALLEY