McCormick reports "strong sales"7 Oct 2019
McCormick & Company has reported financial results for the third quarter ended August 31, 2019 and provided its latest financial outlook for fiscal year 2019.
Earnings per share were $1.43 in the third quarter as compared to $1.30 in the year-ago period. Adjusted earnings per share rose 14% to $1.46 from $1.28 in the year-ago period.
Operating income was $254 million in the third quarter compared to $230 million in the year-ago period. Adjusted operating income was $261 million, a 9% increase from $239 million in the third quarter of 2018, and a 10% increase in constant currency. Sales rose 1% in the third quarter from the year-ago period with gross margin expansion of 100 basis points. In constant currency, the company grew sales 2%.
For fiscal year 2019, McCormick said it continues to expect strong growth and based on its year-to-date performance raised its earnings per share outlook.
Lawrence E. Kurzius, Chairman, President and CEO, said: "Our strong third quarter and year to date results reflect the successful execution of our strategies. We delivered strong sales and operating profit growth while also making investments for the future. In addition to sales growth in the third quarter, we drove strong adjusted operating profit growth and 160 basis points of adjusted operating margin expansion. Our fundamentals remain strong and we are confident the initiatives we have underway in 2019 position us to continue our growth trajectory.”
"Our third quarter growth in the consumer segment accelerated versus our first half and was driven by our Americas and Asia Pacific regions. New products and base business volume growth attributable to our category management initiatives and expanded distribution, as well as effective marketing support and merchandising execution, all contributed to our consumer segment's growth. After a strong first half, our flavor solutions segment's sales were flat in constant currency compared to last year. While demand from our flavor solutions' customers remains strong, this segment tends to have some quarter to quarter volatility. We have delivered strong year to date flavor solutions results and are confident in our growth projection for the fourth quarter.”
"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. We are continuing to capitalize on the global and growing consumer interests in healthy, flavorful eating, the source and quality of ingredients, and sustainable practices. In 2019, we expect to deliver another strong year of profitable growth while continuing to make targeted investments and fuel our growth to build the McCormick of the future.”
"I want to recognize McCormick employees around the world for their efforts and engagement which drive our momentum and make us successful. With our vision to bring the joy of flavor to life and our relentless focus on growth, performance, and people, we are confident we are well positioned to drive future growth, continue our forward momentum and build value for our shareholders in 2019," Kurzius concluded.
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