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Feb 28, 2022
McCormick Q1 2022 Earnings Report
McCormick delivered solid financial results aligned with expectations, growing constant currency sales by 4% and reiterating the 2022 outlook.
Key Takeaways
McCormick reported a 3% sales increase in the first quarter, with constant currency sales growing by 4%. The Consumer segment sales declined by 2%, while the Flavor Solutions segment sales increased by 12%. Earnings per share was $0.57, and adjusted earnings per share was $0.63. The company reiterated its 2022 financial outlook.
Sales rose 3% in the first quarter from the year-ago period; constant currency sales grew 4%.
Operating income was $207 million; adjusted operating income was $227 million.
Earnings per share was $0.57; adjusted earnings per share was $0.63.
McCormick reiterated its sales, operating income, and earnings per share outlook for fiscal year 2022.
Revenue by Segment
Forward Guidance
For the 2022 fiscal year, McCormick reiterated its financial outlook for sales, operating income and earnings per share.
Positive Outlook
- McCormick expects to grow sales by 3% to 5% compared to 2021, which in constant currency is 4% to 6%.
- Sales growth is expected to be driven by brand marketing, new products, category management and differentiated customer engagement.
- Pricing actions, which in conjunction with cost savings, are expected to offset anticipated inflationary pressures.
- Operating income in 2022 is expected to grow by 13% to 15% from $1.02 billion in 2021.
- Adjusted operating income is expected to increase 7% to 9%, which in constant currency is 8% to 10%.
Challenges Ahead
- The Company anticipates integration expenses related to the FONA acquisition of approximately $3 million in 2022.
- McCormick expects approximately $30 million of special charges in 2022 that relate to previously announced organization and streamlining actions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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