McCormick & Company, Incorporated (NYSE:MKC) has reported strong financial results for the fourth quarter and fiscal year ended November 30, 2024, and provided its financial outlook for fiscal year 2025.
For the fourth quarter of 2024, sales increased 3% from the year-ago period, driven by a 1% benefit from currency, and the sales increase was primarily driven by volume. Earnings per share for the quarter was $0.80 compared to $0.81 in 2023. Adjusted earnings per share was $0.80 compared to $0.85 in 2023.
In fiscal year 2024, sales increased 1% from the prior year, with minimal impact from currency, and the sales increase was driven by pricing and volume. Earnings per share for the fiscal year was $2.92 compared to $2.52 in 2023. Adjusted earnings per share was $2.95 compared to $2.70 in 2023.
Cash flow from operations was $922 million for fiscal year 2024 compared to $1.2 billion in 2023.
In the fiscal year 2025 outlook, the company expects net sales growth of 0% to 2% as reported and 1% to 3% in constant currency. The operating income is expected to grow by 3% to 5%, and adjusted earnings per share is expected to be in the range of $2.99 to $3.04.
In the fourth quarter of 2024, net sales increased 3% from the year-ago period, including a 1% benefit from currency. Organic sales increased 2% driven by volume and product mix. The consumer segment sales increased 4% and the flavor solutions segment sales increased 1% from the fourth quarter of 2023.
For the fiscal year 2024, net sales increased 1% with organic sales driven by pricing and volume. The consumer segment sales increased 1%, and the flavor solutions segment sales increased 1%. Gross profit increased by $89 million from the comparable period in 2023, representing a gross profit margin expansion of 90 basis points.
The company's fiscal 2025 outlook reflects its prioritized investments in key categories to strengthen volume trends and drive long-term profitable growth. The company expects foreign currency rates to unfavorably impact sales, adjusted operating income, and adjusted earnings per share.
The company's adjusted earnings per share for the fourth quarter of 2024 was $0.80 compared to $0.85 in the year-ago period. For the fiscal year 2024, the adjusted earnings per share was $2.95 compared to $2.70 in 2023.
Following these announcements, the company's shares moved 2.1%, and are now trading at a price of $74.8. If you want to know more, read the company's complete 8-K report here.
