McCormick reports 19% increase in sales

2 Jul 2018

McCormick has reported financial results for the second quarter ended May 31, 2018 and reaffirmed its latest financial outlook for fiscal year 2018.

McCormick has reported financial results for the second quarter ended May 31, 2018 and reaffirmed its latest financial outlook for fiscal year 2018.

Sales rose 19% in the second quarter from the year-ago period. In constant currency, the company grew sales 16%, with strong results in both the consumer and flavor solutions segments. Operating income was $192 million in the second quarter compared to $133 million in the year-ago period. Adjusted operating income was $208 million, a 51% increase from $137 million in the second quarter of 2017, and a 48% increase in constant currency. Earnings per share were $0.93 in the second quarter as compared to $0.79 in the year-ago period. Adjusted earnings per share rose 24% to $1.02 from $0.82 in the year-ago period.

Lawrence E. Kurzius, Chairman, President and CEO, said: "McCormick's strong second quarter and year to date results reflect the successful execution of our strategies. We delivered double-digit sales, adjusted operating income and adjusted earnings per share growth as well as significant operating margin expansion.”

"Both our consumer and flavor solutions segments contributed to our constant currency sales growth of 16%. Growth in both segments was led by incremental sales from the Frank's and French's portfolio. Consumer segment sales growth was also driven by both Americas and Asia/Pacific base business and new products, with particular strength in China. Our additional flavor solutions segment growth was driven by increased base business and new product sales in flavors as well as broad-based branded foodservice growth in the Americas region. Across both of our segments, the solid growth from our core business and the performance of Frank's and French's were in line with our plans and we are pleased with our momentum entering the second half of the year.”

"McCormick is a global leader in flavor with a broad and advantaged global portfolio which continues to grow and position us to fully meet the demand for flavor around the world. All over the world, people desire great tasting foods and drinks with rich, authentic flavor. And we deliver flavor across all markets and through all channels. We are focused on growth, delivering against our objectives, strengthening our organization and building the McCormickof the future. Through the execution of our strategies, we are becoming even better positioned to drive future growth and are confident in our continued success. We are balancing our resources and efforts to drive sales with our work to lower costs led by our Comprehensive Continuous Improvement (CCI) program.”

"I want to recognize McCormick employees around the world for their efforts and engagement. With our vision to bring the joy of flavor to life and our steadfast focus on growth, performance, and people, we are confident in our continuing momentum for growth in 2018 to deliver strong financial results and build value for our shareholders."