McCormick’s third-quarter net sales rose 17.4% from a year earlier, with 0.9 percentage points of that increase coming from currency and 2.2 points from the McCormick de Mexico acquisition. Organic sales grew 1.9%.
Gross profit climbed to $794.9 million from the prior year, lifting gross margin by 190 basis points to 39.3%. Adjusted gross profit margin rose 180 basis points to 39.3%.
Operating income fell to $217.0 million from $289.0 million a year ago, but adjusted operating income increased to $358.5 million from $294.0 million. That pushed adjusted operating income up 22.1% year over year, while the reported operating margin dropped 600 basis points to 10.7%; adjusted operating margin increased 70 basis points to 17.7%.
Earnings per share declined to $0.36 from $0.84. Adjusted EPS edged up to $0.86 from $0.85.
The consumer segment posted the biggest sales gain, up 24.9% to $1.215 billion. Within that, the Americas rose 31.7%, EMEA increased 5.2%, and APAC climbed 10.7%. Organic sales in consumer were up 1.1%, with price up 2.2% and volume/mix down 1.1%.
Flavor Solutions sales increased 7.7% to $809 million. Americas sales rose 8.4%, EMEA increased 1.6%, and APAC jumped 14.2%. Organic sales in the segment were up 3.0%, driven by 2.2% higher pricing and 0.8% volume/mix growth.
On profitability by segment, consumer operating income increased 24% to $241 million, while Flavor Solutions operating income rose 18% to $117 million.
For fiscal 2026, McCormick reiterated net sales growth of 13% to 17%, with 11% to 13% of that tied to McCormick de Mexico. Organic sales growth is now expected at 1% to 3%. Adjusted operating income is projected to rise 16% to 20%, and adjusted EPS is forecast at $3.05 to $3.13. The market has reacted to these announcements by moving the company's shares -4.13% to a price of $46.40. If you want to know more, read the company's complete 8-K report here.
