MCCORMICK & CO INC Reports 1% Net Sales Growth

By Philip Seaworth • Thursday, June 26 10:16 • Permanent Link

Mccormick & Company, Incorporated (NYSE:MKC) has reported a 1% increase in net sales for the second quarter ended May 31, 2025, driven by volume growth, despite a 1% unfavorable impact from currency. Organic sales grew by 2%, primarily driven by volume.

Operating income for the second quarter was $246 million, a 5% increase from the year-ago period. Adjusted operating income also saw a significant rise, reaching $259 million, a 10% increase from the year-ago period. The company also reported adjusted earnings per share of $0.69, which is comparable to the year-ago period, indicating stability in this metric.

The company's consumer segment net sales increased by 3% to $931 million, with minimal impact from currency. The flavor solutions segment, however, saw a 1% decrease in net sales to $729 million, including a 1% unfavorable impact from currency.

Gross profit for the second quarter increased by $3 million compared to the same period in 2024. However, gross profit margin contracted by 20 basis points, driven by costs to support increased capacity for future growth and higher commodity costs.

Looking ahead, McCormick reaffirmed its fiscal 2025 outlook, reflecting plans to mitigate current tariff impacts. The company's fiscal 2025 outlook includes an expectation of 0% to 2% net sales growth, with the constant currency expectation ranging from 1% to 3%.

In terms of profitability metrics, the company expects 2% to 4% growth in operating income, with adjusted earnings per share anticipated to be in the range of $2.98 to $3.03, representing a 2% to 4% increase. The adjusted operating income margin is expected to be in the range of 14.8% to 15.6%.

Despite ongoing uncertainty related to tariffs and the dynamic consumer and macro environment, McCormick is confident in its ability to achieve its 2025 outlook and drive long-term shareholder value.

The company also emphasized its commitment to strong cash flow and intends to return a significant portion of cash flow to shareholders through dividends.

Following these announcements, the company's shares moved -1.43%, and are now trading at a price of $73.64. Check out the company's full 8-K submission here.

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