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Feb 28, 2023
McCormick Q1 2023 Earnings Report
McCormick delivered solid first quarter results, reflecting strong demand and early results from actions to increase profit realization in 2023.
Key Takeaways
McCormick reported a 3% increase in sales for the first quarter, or 5% in constant currency. The company reaffirmed its 2023 outlook, expecting strong underlying business performance driven by sales growth and a favorable impact from the GOE program.
Sales increased 3% in the first quarter, or 5% in constant currency.
Operating income was $199 million, compared to $207 million in the year-ago period.
Earnings per share was $0.52, compared to $0.57 in the year-ago period.
McCormick reaffirmed its sales, operating income, and earnings per share outlook for fiscal year 2023.
McCormick
McCormick
McCormick Revenue by Segment
Revenue by Segment
Consumer Revenue
CapyFin.comFlavor Solutions Revenue
CapyFin.com Forward Guidance
McCormick reaffirmed its financial outlook for fiscal year 2023, expecting sales growth of 5% to 7% and operating income growth of 10% to 12%.
Positive Outlook
- Strong underlying business performance in 2023 driven by sales growth.
- Favorable impact to operating income from its GOE program.
- Lapping of the negative impact of the COVID-related disruptions in China in 2022.
- Sales growth to be driven primarily by pricing actions and cost savings.
- Continued growth through the strength of its brands, brand marketing, new products, category management, and differentiated customer engagement plans.
Challenges Ahead
- Kitchen Basics divestiture will negatively impact results.
- Expected increase in employee incentive compensation expenses.
- Earnings per share growth will be tempered by higher interest expense.
- Higher projected effective tax rate compared to 2022.
- Approximately $50 million of special charges in 2023 related to previous organizational and streamlining actions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income