McCormick beats profit expectations and lifts full-year outlook, while sales comes up a bit shy

McCormick & Co. Inc. (MKC), the parent of flavor brands including French's, Frank's RedHot and McCormick spices, reported Thursday fiscal second-quarter profit that beat expectations and raised its full-year outlook, while sales came up just shy of forecasts as volume fell. Net income for the quarter to May 31 rose to $152.1 million, or 56 cents a share, from $118.5 million, or 44 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 60 cents beat the FactSet consensus of 58 cents. Sales grew 8.0% to $1.659 billion, compared with the FactSet consensus of $1.668 billion, as growth reflected an 11% increase in pricing and a 1% decline in volume and mix. Consumer sales rose 5.3% to $912.1 million and flavor solutions sales increased 11.4% to $747.1 million. For fiscal 2023, the company raised its adjusted EPS guidance range to $2.60 to $2.65 from $2.56 to $2.61 but affirmed its sales growth outlook of 5% to 7%, driven by pricing actions. The stock, which was still inactive in premarket trading, has rallied 13.1% over the past three months while the S&P 500 has gained 8.7%.

-Tomi Kilgore

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06-29-23 0649ET

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