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McCormick
🇺🇸 NYSE:MKC
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•
Nov 30, 2020

McCormick Q4 2020 Earnings Report

Reported strong financial results for the fourth quarter and fiscal year ended November 30, 2020.

Key Takeaways

McCormick & Company reported a 5% sales increase in the fourth quarter from the year-ago period. Earnings per share decreased to $0.74 from $0.79. Adjusted earnings per share decreased to $0.79 from $0.81 driven by higher brand marketing investments versus the fourth quarter of 2019.

Sales increased 5% from the year-ago period.

Earnings per share decreased to $0.74 from $0.79.

Adjusted earnings per share decreased to $0.79 from $0.81 driven by higher brand marketing investments.

The Company grew sales in both segments with the Consumer segment growth driven by an increase in demand resulting from consumers cooking more at home and led by the Americas and Europe, Middle East and Africa (EMEA) regions, partially offset by a decline in the Asia/Pacific region related to away from home products included in its Consumer portfolio. In the Flavor Solutions segment, all regions contributed to growth.

Total Revenue
$1.56B
Previous year: $1.49B
+4.9%
EPS
$0.79
Previous year: $0.81
-2.5%
Gross Profit
$661M
Previous year: $630M
+4.9%
Cash and Equivalents
$424M
Previous year: $155M
+172.6%
Free Cash Flow
$335M
Previous year: $386M
-13.1%
Total Assets
$12.1B
Previous year: $10.4B
+16.7%

McCormick

McCormick

McCormick Revenue by Segment

Forward Guidance

McCormick expects to increase year-on-year sales by 7% to 9%, including the contribution of its Cholula and FONA acquisitions, or 5% to 7% in constant currency. McCormick projects 2021 earnings per share to be in the range of $2.71 to $2.76, compared to $2.78 of earnings per share in 2020.

Positive Outlook

  • Capitalizing on the sustained shift to cooking more at home
  • Growing consumer interests in clean and flavorful eating
  • Increased digital engagement
  • Trusted brands
  • Purpose-minded practices

Challenges Ahead

  • Transaction and integration expenses related to the Cholula and FONA acquisitions of approximately $50 million in 2021
  • Approximately $8 million of special charges in 2021 that relate to previously announced organization and streamlining actions
  • A 4% impact from incremental 2021 business transformation
  • First-half volume driven COVID-19 expenses
  • An anticipated increase in the projected adjusted effective tax rate to approximately 23%

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View McCormick