Overview
- McCormick reported fiscal third-quarter revenue of $2.02 billion and adjusted EPS of $0.86, both above analyst expectations.
- GAAP net income fell to $97.6 million from $225.5 million because the company recorded one-time charges related to the pending Unilever food-business transaction.
- The consumer segment’s sales rose 25% largely because of the McCormick de Mexico acquisition while organic consumer sales grew about 1%, and flavor solutions grew 8% with 3% organic growth.
- Gross profit margin widened by 190 basis points to 39.3% as the Mexico deal, higher sales, and productivity and cost-savings programs offset rising commodity and freight costs.
- Management said it has advanced integration planning for the Unilever combination, reaffirmed full-year adjusted EPS guidance, and shares moved higher after the report.