McCORMICK REPORTS STRONG 2024 FINANCIAL RESULTS AND PROVIDES 2025 OUTLOOK
McCormick (NYSE:MKC) reported strong financial results for Q4 and fiscal year 2024. Fourth quarter sales increased 3% with a 1% currency benefit, while fiscal year sales grew 1%. Q4 earnings per share was $0.80 compared to $0.81 in 2023, while adjusted EPS was $0.80 versus $0.85 in 2023.
For fiscal year 2024, earnings per share reached $2.92 compared to $2.52 in 2023, with adjusted EPS of $2.95 versus $2.70. Cash flow from operations was $922 million, down from $1.2 billion in 2023. The company increased its quarterly dividend by 7%, marking the 39th consecutive year of dividend increases.
Looking ahead to 2025, McCormick expects net sales growth of 0-2% (1-3% in constant currency), operating income growth of 3-5%, and adjusted earnings per share of $3.03-$3.08. The company anticipates a tax rate of 22% and plans to continue returning significant cash flow to shareholders through dividends.
McCormick (NYSE:MKC) ha riportato risultati finanziari solidi per il quarto trimestre e l'anno fiscale 2024. Le vendite del quarto trimestre sono aumentate del 3% con un beneficio valutario dell'1%, mentre le vendite dell'anno fiscale sono cresciute dell'1%. Gli utili per azione del Q4 sono stati di $0,80 rispetto a $0,81 nel 2023, mentre l'EPS rettificato è stato di $0,80 contro $0,85 nel 2023.
Per l'anno fiscale 2024, gli utili per azione hanno raggiunto i $2,92 rispetto ai $2,52 nel 2023, con un EPS rettificato di $2,95 rispetto ai $2,70. Il flusso di cassa dalle operazioni è stato di $922 milioni, in diminuzione rispetto a $1,2 miliardi nel 2023. L'azienda ha aumentato il suo dividendo trimestrale del 7%, segnando il 39° anno consecutivo di aumenti dei dividendi.
Guardando al 2025, McCormick prevede una crescita delle vendite nette dell'0-2% (1-3% in valuta costante), una crescita del reddito operativo del 3-5% e utili per azione rettificati di $3,03-$3,08. L'azienda prevede un'aliquota fiscale del 22% e intende continuare a restituire un flusso di cassa significativo agli azionisti attraverso i dividendi.
McCormick (NYSE:MKC) reportó resultados financieros sólidos para el cuarto trimestre y el año fiscal 2024. Las ventas del cuarto trimestre aumentaron un 3% con un beneficio cambiario del 1%, mientras que las ventas del año fiscal crecieron un 1%. Las ganancias por acción del Q4 fueron de $0.80 en comparación con $0.81 en 2023, mientras que las EPS ajustadas fueron de $0.80 frente a $0.85 en 2023.
Para el año fiscal 2024, las ganancias por acción alcanzaron $2.92 en comparación con $2.52 en 2023, con una EPS ajustada de $2.95 frente a $2.70. El flujo de efectivo de las operaciones fue de $922 millones, una disminución respecto a los $1.2 mil millones en 2023. La empresa incrementó su dividendo trimestral en un 7%, marcando el 39º año consecutivo de aumentos en los dividendos.
Mirando hacia 2025, McCormick espera un crecimiento en ventas netas del 0-2% (1-3% en moneda constante), un crecimiento en ingresos operativos del 3-5% y ganancias por acción ajustadas de $3.03-$3.08. La empresa anticipa una tasa impositiva del 22% y planea continuar devolviendo un flujo de efectivo significativo a los accionistas a través de dividendos.
맥코믹 (NYSE:MKC)은 2024년 4분기 및 회계 연도의 강력한 재무 성과를 보고했습니다. 4분기 매출은 3% 증가했으며, 외환 혜택이 1% 있었습니다. 회계 연도 매출은 1% 성장했습니다. 4분기 주당 순이익은 2023년의 $0.81에 비해 $0.80이었습니다. 조정된 주당 순이익은 2023년의 $0.85에 비해 $0.80이었습니다.
2024 회계 연도에 대해 주당 순이익은 2023년의 $2.52에 비해 $2.92에 도달했으며, 조정된 EPS는 $2.70에 비해 $2.95입니다. 운영에서의 현금 흐름은 2023년의 $12억에서 줄어든 $9억 2천 2백만이었습니다. 회사는 분기 배당금을 7% 인상했으며, 이는 배당금 인상이 39년 연속으로 이어진 것을 의미합니다.
2025년을 바라보며, 맥코믹은 순매출 성장률을 0-2%(거래 통화로는 1-3%)로, 운영 수익 성장률을 3-5%로, 조정된 주당 순이익을 $3.03-$3.08로 예상하고 있습니다. 회사는 22%의 세율을 예상하고 있으며, 배당금을 통해 주주에게 상당한 현금 흐름을 계속 반환할 계획입니다.
McCormick (NYSE:MKC) a annoncé de solides résultats financiers pour le quatrième trimestre et l'année fiscale 2024. Les ventes du quatrième trimestre ont augmenté de 3% avec un avantage de change de 1%, tandis que les ventes de l'année fiscale ont augmenté de 1%. Le bénéfice par action du Q4 était de 0,80 $ par rapport à 0,81 $ en 2023, tandis que le BPA ajusté était de 0,80 $ contre 0,85 $ en 2023.
Pour l'année fiscale 2024, le bénéfice par action a atteint 2,92 $ par rapport à 2,52 $ en 2023, avec un BPA ajusté de 2,95 $ contre 2,70 $. Le flux de trésorerie d'exploitation était de 922 millions de dollars, en baisse par rapport à 1,2 milliard de dollars en 2023. L'entreprise a augmenté son dividende trimestriel de 7 %, marquant la 39e année consécutive d'augmentations de dividendes.
En regardant vers 2025, McCormick s'attend à une croissance des ventes nettes de 0 à 2 % (1 à 3 % en monnaie constante), une croissance du résultat d'exploitation de 3 à 5 % et un bénéfice par action ajusté de 3,03 $ à 3,08 $. L'entreprise prévoit un taux d'imposition de 22 % et prévoit de continuer à retourner un flux de trésorerie significatif aux actionnaires via des dividendes.
McCormick (NYSE:MKC) hat starke Finanzzahlen für das vierte Quartal und das Geschäftsjahr 2024 bekannt gegeben. Der Umsatz im vierten Quartal stieg um 3% mit einem Währungsbenefit von 1%, während der Umsatz im Geschäftsjahr um 1% wuchs. Der Gewinn pro Aktie im Q4 betrug $0,80 im Vergleich zu $0,81 in 2023, während das bereinigte EPS $0,80 im Gegensatz zu $0,85 in 2023 betrug.
Für das Geschäftsjahr 2024 erreichte der Gewinn pro Aktie $2,92 im Vergleich zu $2,52 in 2023, mit einem bereinigten EPS von $2,95 gegenüber $2,70. Der Cashflow aus den Betrieben betrug $922 Millionen, gegenüber $1,2 Milliarden in 2023. Das Unternehmen erhöhte seine vierteljährliche Dividende um 7%, was das 39. Jahr in Folge mit Dividendenerhöhungen markiert.
Für 2025 erwartet McCormick ein Nettoumsatzwachstum von 0-2% (1-3% in konstanten Währungen), ein Wachstum des operativen Einkommens von 3-5% und bereinigte Gewinne pro Aktie von $3,03-$3,08. Das Unternehmen rechnet mit einem Steuersatz von 22% und plant, weiterhin signifikante Cashflows über Dividenden an die Aktionäre zurückzugeben.
- Sales increased 3% in Q4 2024 and 1% for full year
- Fiscal 2024 EPS grew 15.9% to $2.92
- Adjusted EPS increased 9.3% to $2.95 in fiscal 2024
- 7% dividend increase, marking 39th consecutive year of increases
- Gross profit margin expanded 90 basis points in fiscal 2024
- Operating income grew 10.1% to $1.06 billion in fiscal 2024
- Q4 adjusted EPS declined to $0.80 from $0.85 year-over-year
- Cash flow from operations decreased to $922M from $1.2B in 2023
- Consumer segment operating income decreased 3% in Q4 2024
Insights
McCormick's FY2024 results reveal a compelling story of strategic execution and margin enhancement, though with some notable concerns. The Consumer segment's
The standout achievement is margin performance -
Looking ahead to 2025, McCormick faces currency headwinds expected to impact adjusted EPS by
A critical watch point is volume growth sustainability, particularly in China where consumer recovery remains gradual. The
- For the fourth quarter, sales increased
3% from the year-ago period and included a1% benefit from currency. The sales increase was driven by volume. Earnings per share was$0.80 $0.81 $0.80 $0.85 - For fiscal year 2024, sales increased
1% from the prior year, with minimal impact from currency. The sales increase was driven by pricing and volume. Earnings per share of$2.92 $2.52 $2.95 $2.70 - Cash flow from operations was
$922 million $1.2 billion 7% increase to the quarterly dividend, marking the 39th consecutive year of dividend increases. - The Company's 2025 outlook continues to reflect its prioritized investments in core categories to strengthen volume trends, expand operating margins, and drive long-term profitable growth.
Chairman, President, and CEO's Remarks
Brendan M. Foley, Chairman, President, and CEO, stated, "We are pleased to report strong performance for both fourth quarter and fiscal year 2024, an important year for McCormick, in which we built momentum and strengthened our leadership, returning to differentiated and sustainable volume-led growth. We successfully delivered on our objectives for the year. Our strategic investments in core categories enabled us to drive positive volume growth, expand our margins, and deliver robust earnings growth. Additionally, we achieved another year of strong cash flow, paid down debt, and reduced our leverage ratio, further strengthening our balance sheet."
"As we look ahead to 2025, we remain confident in our ability to sustain this momentum by executing on our proven strategies as well as leveraging the demand for flavor and the strength of our brands to achieve industry-leading performance. We continue to execute with speed and agility on the initiatives within our growth levers, including brand marketing, new products and packaging, category management, and proprietary technologies. Additionally, we believe we are well positioned with our cost savings initiatives to fuel investments and generate operating margin expansion. Importantly, we have the right leadership team and engaged employees globally to deliver on our near-term and long-term objectives and drive shareholder value."
"Lastly, I am deeply grateful to McCormick employees worldwide; they remain the foundation of our success. Their dedication, continuous contributions, and disciplined execution in a dynamic environment continue to inspire me. As a leadership team, we are committed to enhancing our people-centric culture and developing the next generation of leaders and capabilities that will drive our success well into the future."
Fourth Quarter and Fiscal Year 2024 Results
Sales Metrics
Fourth Quarter 2024 | |||||||||
As Reported | Organic1 | Acquisition/Divestiture | Constant Currency | ||||||
% Change | Volume/ Mix | Price | % Change | % Change | % Change | ||||
Total Net Sales | 2.6 % | 2.2 % | (0.4) % | 1.8 % | — % | 1.8 % | |||
Total Consumer | 3.5 % | 3.7 % | (1.3) % | 2.4 % | — % | 2.4 % | |||
3.7 % | 5.1 % | (1.4) % | 3.7 % | — % | 3.7 % | ||||
EMEA | 7.8 % | 4.9 % | (2.0) % | 2.9 % | — % | 2.9 % | |||
APAC | (6.9) % | (11.2) % | 0.9 % | (10.3) % | — % | (10.3) % | |||
Total Flavor Solutions | 1.2 % | (0.2) % | 1.0 % | 0.8 % | — % | 0.8 % | |||
(0.2) % | (0.8) % | 2.2 % | 1.4 % | — % | 1.4 % | ||||
EMEA | 1.6 % | (1.6) % | (2.4) % | (4.0) % | — % | (4.0) % | |||
APAC | 11.1 % | 7.4 % | (0.9) % | 6.5 % | — % | 6.5 % | |||
1 Organic sales defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. |
Fiscal Year 2024 | |||||||||
As Reported | Organic | Acquisition/Divestiture | Constant Currency | ||||||
% Change | Volume/ Mix | Price | % Change | % Change | % Change | ||||
Total Net Sales | 0.9 % | 0.3 % | 0.5 % | 0.8 % | (0.2) % | 0.6 % | |||
Total Consumer | 1.1 % | 0.8 % | — % | 0.8 % | — % | 0.8 % | |||
0.6 % | 1.0 % | (0.3) % | 0.7 % | — % | 0.7 % | ||||
EMEA | 7.3 % | 3.7 % | 0.6 % | 4.3 % | — % | 4.3 % | |||
APAC | (5.1) % | (4.9) % | 0.8 % | (4.1) % | — % | (4.1) % | |||
Total Flavor Solutions | 0.7 % | (0.3) % | 1.2 % | 0.9 % | (0.5) % | 0.4 % | |||
1.4 % | (0.1) % | 1.6 % | 1.5 % | — % | 1.5 % | ||||
EMEA | (3.5) % | (3.3) % | (0.3) % | (3.6) % | (2.3) % | (5.9) % | |||
APAC | 4.1 % | 4.2 % | 0.9 % | 5.1 % | — % | 5.1 % | |||
Profitability Metrics
($ in millions except per share data)
Fourth Quarter 2024 | |||||
As Reported | Adjusted | ||||
Q4 2024 | vs. 2023 | Q4 2024 | vs. 2023 | ||
Gross profit | $ 722.2 | 3.0 % | $ 722.2 | 3.0 % | |
Gross profit margin | 40.2 % | 20 bps | 40.2 % | 20 bps | |
Operating income | $ 306.2 | 3.0 % | $ 307.8 | (1.1) % | |
Operating income margin | 17.0 % | 0 bps | 17.1 % | (60) bps | |
Net income | $ 215.2 | (1.9) % | $ 216.5 | (5.8) % | |
Earnings per share - diluted | $ 0.80 | (1.2) % | $ 0.80 | (5.9) % | |
Fiscal Year 2024 | |||||
As Reported | Adjusted | ||||
FY 2024 | vs. 2023 | FY 2024 | vs. 2023 | ||
Gross profit | 3.5 % | 3.5 % | |||
Gross profit margin | 38.5 % | 90 bps | 38.5 % | 90 bps | |
Operating income | 10.1 % | 4.5 % | |||
Operating income margin | 15.8 % | 130 bps | 15.9 % | 50 bps | |
Net income | $ 788.5 | 15.9 % | $ 795.6 | 9.4 % | |
Earnings per share - diluted | $ 2.92 | 15.9 % | $ 2.95 | 9.3 % | |
Fourth Quarter 2024 Results
Net sales in the fourth quarter increased
- Consumer segment sales increased
4% from the fourth quarter of 2023 to$1,085 million 1% currency benefit. Organic sales increased3% , reflecting a4% increase in volume and product mix, partially offset by1% decrease from pricing. - Flavor Solutions segment sales increased
1% from the fourth quarter of 2023 to$713 million 1% driven by pricing.
Gross profit for the fourth quarter increased by
Operating income was
- Consumer segment operating income, excluding special charges, decreased
3% to$228 million - Flavor Solutions segment operating income, excluding special charges, grew
5% to$80 million 7% in constant currency, driven by product mix, pricing, and cost savings generated by the CCI program partially offset by increased selling, general and administrative costs.
Earnings per share was
This decrease was primarily attributable to the impact of a higher tax rate and lower operating income.
Fiscal Year 2024 Results
Net sales increased
- Consumer segment sales increased
1% from 2023 to$3,849 million 1% , driven by volume growth. - Flavor Solutions segment sales increased
1% from 2023 to$2,875 million 1% benefit from currency offset by the canning business divestiture. Organic sales increased1% , driven by pricing.
Gross profit increased by
Operating income was
- Consumer segment operating income, excluding special charges, increased
1% to$740 million - Flavor Solutions segment operating income, excluding special charges, grew
14% to$330 million
Earnings per share was
Net cash provided by operating activities was
Fiscal Year 2025 Financial Outlook
McCormick's fiscal 2025 outlook continues to reflect the Company's prioritized investments in key categories to strengthen volume trends and drive long-term profitable growth while appreciating the uncertainty of the consumer and macro environment. The Company's CCI program is continuing to fuel growth investments while also driving operating margin expansion. The Company expects foreign currency rates to unfavorably impact sales by
As Reported | Constant Currency | Expectations: | |||
Net sales growth | Drivers: • Volume-led growth across both segments • Gradual improvement in | ||||
Operating income | Gross margin expansion partially offset by growth investments, including brand marketing.
Anticipate | ||||
Adjusted operating income | |||||
Earnings per share (EPS) | Operating income growth, partially offset by: • Tax rate of • Mid-teens year-over-year decline in income from unconsolidated operations due Special charges expected to impact EPS by | ||||
Adjusted EPS |
(1) | Organic sales, defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency, growth is expected to be a |
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 tables below include financial measures of organic net sales, 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 – In our consolidated income statement, we include a separate line item captioned "Special charges" in arriving at our consolidated operating income. Special charges consist of expenses and income associated with certain actions undertaken by the Company to reduce fixed costs, simplify or improve processes, and improve our competitiveness and are of such significance in terms of both up-front costs and organizational/structural impact to require advance approval by our Management Committee.
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 is provided below:
(in millions except per share data) | Three Months Ended | Year Ended | |||||
11/30/2024 | 11/30/2023 | 11/30/2024 | 11/30/2023 | ||||
Operating income | $ 306.2 | $ 297.2 | $ 1,060.3 | $ 963.0 | |||
Impact of special charges | 1.6 | 14.1 | 9.5 | 61.2 | |||
Adjusted operating income | $ 307.8 | $ 311.3 | $ 1,069.8 | $ 1,024.2 | |||
% (decrease) increase versus year-ago period | (1.1) % | 4.5 % | |||||
Operating income margin(1) | 17.0 % | 17.0 % | 15.8 % | 14.5 % | |||
Impact of special charges | 0.1 % | 0.7 % | 0.1 % | 0.9 % | |||
Adjusted operating income margin(1) | 17.1 % | 17.7 % | 15.9 % | 15.4 % | |||
Income tax expense | $ 67.2 | $ 57.1 | $ 174.5 | ||||
Impact of special charges | 0.3 | 3.5 | 2.4 | 14.5 | |||
Adjusted income tax expense | $ 67.5 | $ 60.6 | $ 189.0 | ||||
Income tax rate(2) | 25.4 % | 22.2 % | 20.5 % | 21.8 % | |||
Impact of special charges(2) | — % | 0.1 % | — % | 0.2 % | |||
Adjusted income tax rate(2) | 25.4 % | 22.3 % | 20.5 % | 22.0 % | |||
Net income | $ 215.2 | $ 219.3 | $ 680.6 | ||||
Impact of special charges | 1.3 | 10.6 | 7.1 | 46.7 | |||
Adjusted net income | $ 216.5 | $ 229.9 | $ 727.3 | ||||
% (decrease) increase versus year-ago period | (5.8) % | 9.4 % | |||||
Earnings per share - diluted | $ 0.80 | $ 0.81 | $ 2.92 | $ 2.52 | |||
Impact of special charges | — | 0.04 | 0.03 | 0.18 | |||
Adjusted earnings per share - diluted | $ 0.80 | $ 0.85 | $ 2.95 | $ 2.70 | |||
% (decrease) increase versus year-ago period | (5.9) % | 9.3 % | |||||
(1) | Operating income margin, impact of special charges, and adjusted operating income margin is calculated as operating income, impact of special charges, and adjusted operating income as a percentage of net sales for each period presented. | |
(2) | 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 organic 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
For the three months ended November 30, 2024 | |||||
Percentage as Reported | Impact of | Percentage | Impact of | Percentage | |
Total Net Sales | 2.6 % | 0.8 % | 1.8 % | — % | 1.8 % |
Total Consumer | 3.5 % | 1.1 % | 2.4 % | — % | 2.4 % |
3.7 % | — % | 3.7 % | — % | 3.7 % | |
EMEA | 7.8 % | 4.9 % | 2.9 % | — % | 2.9 % |
APAC | (6.9) % | 3.4 % | (10.3) % | — % | (10.3) % |
Total Flavor Solutions | 1.2 % | 0.4 % | 0.8 % | — % | 0.8 % |
(0.2) % | (1.6) % | 1.4 % | — % | 1.4 % | |
EMEA | 1.6 % | 5.6 % | (4.0) % | — % | (4.0) % |
APAC | 11.1 % | 4.6 % | 6.5 % | — % | 6.5 % |
Three Months Ended November 30, 2024 | |||||||
Percentage Change | Impact of Foreign | Percentage Change on | |||||
Adjusted operating income | |||||||
Consumer segment | (3.1) % | 0.4 % | (3.5) % | ||||
Flavor Solutions segment | 5.0 % | (1.5) % | 6.5 % | ||||
Total adjusted operating income | (1.1) % | — % | (1.1) % | ||||
For the year ended November 30, 2024 | |||||||
Percentage as Reported | Impact of | Percentage | Impact of | Percentage | |||
Total Net Sales | 0.9 % | 0.3 % | 0.6 % | (0.2) % | 0.8 % | ||
Total Consumer | 1.1 % | 0.3 % | 0.8 % | — % | 0.8 % | ||
0.6 % | (0.1) % | 0.7 % | — % | 0.7 % | |||
EMEA | 7.3 % | 3.0 % | 4.3 % | — % | 4.3 % | ||
APAC | (5.1) % | (1.0) % | (4.1) % | — % | (4.1) % | ||
Total Flavor Solutions | 0.7 % | 0.3 % | 0.4 % | (0.5) % | 0.9 % | ||
1.4 % | (0.1) % | 1.5 % | — % | 1.5 % | |||
EMEA | (3.5) % | 2.4 % | (5.9) % | (2.3) % | (3.6) % | ||
APAC | 4.1 % | (1.0) % | 5.1 % | — % | 5.1 % | ||
Year Ended November 30, 2024 | |||||||
Percentage Change | Impact of Foreign | Percentage Change on | |||||
Adjusted operating income | |||||||
Consumer segment | 0.7 % | — % | 0.7 % | ||||
Flavor Solutions segment | 14.1 % | (0.4) % | 14.5 % | ||||
Total adjusted operating income | 4.5 % | (0.1) % | 4.6 % | ||||
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 constant currency | ||
Percentage change in adjusted earnings per share — diluted | ||
Impact of unfavorable foreign currency exchange | 2 % | |
Percentage change in adjusted earnings per share in constant currency — diluted |
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 | 0.04 | 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, 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 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 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)
Fourth Quarter Report | McCormick & Company, Incorporated | |||||||
Consolidated Income Statement (Unaudited) | ||||||||
(In millions except per-share data) | ||||||||
Three months ended | Year ended | |||||||
November 30, | November 30, | November 30, | November 30, | |||||
Net sales | $ 1,798.0 | $ 1,752.8 | $ 6,723.7 | $ 6,662.2 | ||||
Cost of goods sold | 1,075.8 | 1,051.5 | 4,132.7 | 4,159.7 | ||||
Gross profit | 722.2 | 701.3 | 2,591.0 | 2,502.5 | ||||
Selling, general and administrative expense | 414.4 | 390.0 | 1,521.2 | 1,478.3 | ||||
Special charges | 1.6 | 14.1 | 9.5 | 61.2 | ||||
Operating income | 306.2 | 297.2 | 1,060.3 | 963.0 | ||||
Interest expense | 52.7 | 52.7 | 209.4 | 208.2 | ||||
Other income, net | 10.7 | 13.2 | 47.4 | 43.9 | ||||
Income from consolidated operations before income taxes | 264.2 | 257.7 | 898.3 | 798.7 | ||||
Income tax expense | 67.2 | 57.1 | 184.0 | 174.5 | ||||
Net income from consolidated operations | 197.0 | 200.6 | 714.3 | 624.2 | ||||
Income from unconsolidated operations | 18.2 | 18.7 | 74.2 | 56.4 | ||||
Net income | $ 215.2 | $ 219.3 | $ 788.5 | $ 680.6 | ||||
Earnings per share - basic | $ 0.80 | $ 0.82 | $ 2.94 | $ 2.54 | ||||
Earnings per share - diluted | $ 0.80 | $ 0.81 | $ 2.92 | $ 2.52 | ||||
Average shares outstanding - basic | 268.4 | 268.4 | 268.5 | $ 268.4 | ||||
Average shares outstanding - diluted | 269.7 | 269.6 | 269.6 | 269.8 | ||||
Fourth Quarter Report | McCormick & Company, Incorporated | |||
Consolidated Balance Sheet (Unaudited) | ||||
(In millions) | ||||
November 30, 2024 | November 30, 2023 | |||
Assets | ||||
Cash and cash equivalents | $ 186.1 | $ 166.6 | ||
Trade accounts receivable, net of allowances | 587.4 | 587.5 | ||
Inventories | 1,239.9 | 1,126.5 | ||
Prepaid expenses and other current assets | 125.6 | 121.0 | ||
Total current assets | 2,139.0 | 2,001.6 | ||
Property, plant and equipment, net | 1,413.0 | 1,324.7 | ||
Goodwill | 5,227.5 | 5,260.1 | ||
Intangible assets, net | 3,318.9 | 3,356.7 | ||
Other long-term assets | 971.9 | 919.2 | ||
Total assets | $ 13,070.3 | $ 12,862.3 | ||
Liabilities | ||||
Short-term borrowings and current portion of long-term debt | $ 748.3 | $ 1,071.5 | ||
Trade accounts payable | 1,238.1 | 1,119.3 | ||
Other accrued liabilities | 896.4 | 908.1 | ||
Total current liabilities | 2,882.8 | 3,098.9 | ||
Long-term debt | 3,593.6 | 3,339.9 | ||
Deferred taxes | 840.5 | 861.2 | ||
Other long-term liabilities | 436.6 | 478.8 | ||
Total liabilities | 7,753.5 | 7,778.8 | ||
Shareholders' equity | ||||
Common stock | 2,237.2 | 2,199.6 | ||
Retained earnings | 3,545.0 | 3,249.7 | ||
Accumulated other comprehensive loss | (491.2) | (388.6) | ||
Total McCormick shareholders' equity | 5,291.0 | 5,060.7 | ||
Non-controlling interests | 25.8 | 22.8 | ||
Total shareholders' equity | 5,316.8 | 5,083.5 | ||
Total liabilities and shareholders' equity | $ 13,070.3 | $ 12,862.3 | ||
Fourth Quarter Report | McCormick & Company, Incorporated | |||
Consolidated Cash Flow Statement (Unaudited) | ||||
(In millions) | ||||
Year Ended | ||||
November 30, 2024 | November 30, 2023 | |||
Operating activities | ||||
Net income | $ 788.5 | $ 680.6 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 208.8 | 199.3 | ||
Stock-based compensation | 47.4 | 63.4 | ||
Loss (gain) on sale of businesses | — | 1.2 | ||
(Gain) loss on sale of assets | (2.1) | 0.2 | ||
Deferred income tax expense (benefit) | (30.3) | (5.4) | ||
Income from unconsolidated operations | (74.2) | (56.4) | ||
Changes in operating assets and liabilities (net of businesses disposed) | ||||
Trade accounts receivable | (20.5) | 3.4 | ||
Inventories | (125.0) | 225.0 | ||
Trade accounts payable | 135.1 | (68.1) | ||
Other assets and liabilities | (72.6) | 109.0 | ||
Dividends from unconsolidated affiliates | 66.8 | 85.1 | ||
Net cash flow provided by operating activities | 921.9 | 1,237.3 | ||
Investing activities | ||||
Proceeds from sale of a business | — | 1.0 | ||
Capital expenditures (including software) | (274.9) | (263.9) | ||
Other investing activities | 5.9 | 2.4 | ||
Net cash flow used in investing activities | (269.0) | (260.5) | ||
Financing activities | ||||
Short-term borrowings (repayments), net | 211.1 | (964.6) | ||
Proceeds from issuances of long-term debt | 495.5 | 496.4 | ||
Payment of debt issuance costs | (1.0) | (1.1) | ||
Long-term debt repayments | (801.1) | (268.1) | ||
Proceeds from exercised stock options | 17.5 | 16.6 | ||
Taxes withheld and paid on employee stock awards | (9.0) | (10.8) | ||
Common stock acquired by purchase | (53.1) | (35.7) | ||
Dividends paid | (451.0) | (418.5) | ||
Other financing activities | 8.0 | 1.6 | ||
Net cash flow used in financing activities | (583.1) | (1,184.2) | ||
Effect of exchange rate changes on cash and cash equivalents | (50.3) | 40.0 | ||
Decrease in cash and cash equivalents | 19.5 | (167.4) | ||
Cash and cash equivalents at beginning of period | 166.6 | 334.0 | ||
Cash and cash equivalents at end of period | $ 186.1 | $ 166.6 | ||
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SOURCE McCormick & Company, Incorporated
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