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Feb 28
McCormick Q1 2025 Earnings Report
McCormick reported solid first quarter results, with steady revenue and slight declines in earnings and net income compared to the previous year.
Key Takeaways
McCormick delivered a stable first quarter with net sales of $1.61 billion, a slight increase from the prior year. The company reported earnings per share of $0.60 and adjusted EPS also at $0.60. Operating income and net income both showed modest declines, reflecting currency impacts and increased marketing and administrative expenses. The Flavor Solutions segment saw notable growth, while Consumer segment sales remained flat.
Net sales remained steady at $1.61 billion, up 0.2%.
Operating income decreased to $225.2 million from $233.5 million.
EPS and adjusted EPS both stood at $0.60, down from $0.62 and $0.63 respectively.
Flavor Solutions segment revenue grew 1% to $686 million, showing strong demand and mix benefits.
McCormick
McCormick
McCormick Revenue by Segment
McCormick Revenue by Geographic Location
Revenue by Segment
Consumer Revenue
CapyFin.comFlavor Solutions Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
McCormick reaffirmed its fiscal 2025 outlook with expectations of stable sales growth and operating margin expansion, despite foreign currency headwinds.
Positive Outlook
- Organic net sales growth of 1% to 3% expected.
- Volume-led growth anticipated across both Consumer and Flavor Solutions segments.
- Gross margin expansion driven by cost savings and operational efficiencies.
- Continued investment in brand marketing to drive consumer engagement.
- Strong projected cash flow with shareholder returns through dividends.
Challenges Ahead
- Foreign currency expected to unfavorably impact sales by 1%.
- Adjusted EPS forecast includes a $0.04 impact from special charges.
- Income from unconsolidated operations projected to decline mid-teens year-over-year.
- Tax rate expected to rise to 22% compared to 20.5% in 2024.
- Uncertainty around potential additional tariffs not included in guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income