https://assets.capyfin.com/instruments/678fdc13234e27009c5d5949.png avatar
McCormick
🇺🇸 NYSE:MKC
View Company
OverviewEarningsDividends
•
Aug 31, 2023

McCormick Q3 2023 Earnings Report

McCormick reported strong performance driven by sustained demand and effective execution of growth strategies.

Key Takeaways

McCormick & Company reported a 6% increase in sales for the third quarter, with operating income rising to $245 million. Earnings per share were reported at $0.63, and the company reaffirmed its fiscal year 2023 sales and operating profit outlook while increasing its adjusted earnings per share outlook.

Sales increased 6% in the third quarter from the year-ago period.

Operating income was $245 million in the third quarter compared to $235 million in the year-ago period.

Earnings per share was $0.63 in the third quarter as compared to $0.82 in the year-ago period.

Cash flow from operations through the third quarter of 2023 was $660 million compared to $250 million in the year-ago period.

Total Revenue
$1.69B
Previous year: $1.6B
+5.6%
EPS
$0.65
Previous year: $0.69
-5.8%
Gross Profit
$623M
Previous year: $567M
+9.9%
Cash and Equivalents
$155M
Previous year: $344M
-55.0%
Free Cash Flow
$197M
Previous year: $30.5M
+546.9%
Total Assets
$13B
Previous year: $12.9B
+0.4%

McCormick

McCormick

McCormick Revenue by Segment

Forward Guidance

For fiscal year 2023, McCormick reaffirmed its sales and operating income outlook and increased its adjusted earnings per share outlook.

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 which, in conjunction with cost savings, are expected to offset inflationary pressures.
  • Drive continued growth through the strength of its brands, as well as brand marketing, new products, category management, and differentiated customer engagement plans.

Challenges Ahead

  • Lower than previously expected benefit from lapping the COVID-related disruptions in China.
  • Partially offset by the Kitchen Basics divestiture and an 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 $55 million of special charges in 2023 that relate to previously announced organizational and streamlining actions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View McCormick