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Aug 31, 2022
McCormick Q3 2022 Earnings Report
McCormick's third quarter performance was reported with sales increase and reaffirmation of 2022 outlook.
Key Takeaways
McCormick & Company reported a 3% increase in sales for the third quarter compared to the previous year. In constant currency, sales increased by 6%, driven by growth in both the Consumer and Flavor Solutions segments. The company reaffirmed its financial outlook for fiscal year 2022.
Sales increased 3% in the third quarter, and 6% in constant currency.
Operating income was $235 million, compared to $265 million in the year-ago period.
Earnings per share was $0.82, compared to $0.79 in the year-ago period.
McCormick reaffirmed its sales, operating income, and earnings per share outlook for fiscal year 2022.
McCormick
McCormick
McCormick Revenue by Segment
Revenue by Segment
Consumer Revenue
CapyFin.comFlavor Solutions Revenue
CapyFin.com Forward Guidance
For fiscal year 2022, McCormick reaffirmed its financial outlook which was previously issued with the Company’s preliminary third quarter 2022 results on September 7, 2022. McCormick expects 2022 sales to range from comparable to 2021 to an increase of 2%, which in constant currency is sales growth of 3% to 5%.
Positive Outlook
- Sales growth to be driven by pricing actions.
- Cost savings are expected to offset inflationary pressures over time.
- Continued growth through the strength of its brands.
- Brand marketing investments.
- New products, category management, and differentiated customer engagement
Challenges Ahead
- Foreign currency rates in 2022 to unfavorably impact net sales by 3%.
- Foreign currency rates in 2022 to unfavorably impact adjusted operating income and adjusted earnings per share by 2%.
- Operating income in 2022 is expected to decline 10% to 8% from $1.02 billion in 2021.
- Adjusted operating income to decline 13% to 11%, or 11% to 9% in constant currency.
- Adjusted earnings per share to be in the range of $2.63 to $2.68 as compared to adjusted earnings per share of $3.05 in 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income