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McCormick
🇺🇸 NYSE:MKC
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•
Feb 28, 2021

McCormick Q1 2021 Earnings Report

Reported double-digit growth in the first quarter and increased the 2021 financial outlook.

Key Takeaways

McCormick & Company reported a strong first quarter with a 22% increase in sales and a 33% increase in adjusted earnings per share. The company has raised its financial outlook for 2021, expecting continued growth driven by consumer trends and strategic investments.

Sales rose 22% in the first quarter, with 20% growth in constant currency, driven by both the Consumer and Flavor Solutions segments.

Operating income increased to $236 million, while adjusted operating income rose 35% to $263 million.

Earnings per share was $0.60, and adjusted earnings per share increased by 33% to $0.72.

McCormick increased its full-year sales outlook to 8%-10% growth, or 6%-8% in constant currency, and raised its operating profit and earnings per share growth outlook.

Total Revenue
$1.48B
Previous year: $1.21B
+22.2%
EPS
$0.72
Previous year: $0.54
+33.3%
Gross Profit
$578M
Previous year: $470M
+22.9%
Cash and Equivalents
$256M
Previous year: $171M
+49.9%
Free Cash Flow
-$80.8M
Previous year: $6.3M
-1382.5%
Total Assets
$12.7B
Previous year: $10.5B
+20.9%

McCormick

McCormick

McCormick Revenue by Segment

Forward Guidance

McCormick has increased its financial outlook for 2021, expecting sales to grow by 8% to 10% and adjusted earnings per share to be in the range of $2.97 to $3.02.

Positive Outlook

  • The company expects to grow sales by 8% to 10% compared to 2020.
  • Organic sales growth is expected in both the Consumer and Flavor Solutions segments.
  • Adjusted operating income is expected to grow by 9% to 11%.
  • Adjusted earnings per share are projected to be in the range of $2.97 to $3.02.
  • The company plans to return a significant portion of cash flow to shareholders through dividends and debt reduction.

Challenges Ahead

  • Transaction and integration expenses related to the Cholula and FONA acquisitions are expected to be approximately $50 million in 2021.
  • Approximately $8 million of special charges are expected in 2021 related to previously announced organization and streamlining actions.
  • A 4% impact from incremental 2021 business transformation and first-half volume driven COVID-19 expenses.
  • A 4% headwind from an anticipated increase in the projected adjusted effective tax rate to approximately 23%.
  • COVID-19 continues to impact the Americas and EMEA regions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View McCormick