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Nov 30, 2021
McCormick Q4 2021 Earnings Report
Reported record sales growth and provided outlook for 2022.
Key Takeaways
McCormick & Company reported an 11% sales increase in the fourth quarter from the year-ago period. Earnings per share decreased to $0.73 from $0.74. Adjusted earnings per share increased 6% to $0.84 from $0.79.
Sales increased 11% from the year-ago period.
Earnings per share decreased to $0.73 from $0.74.
Adjusted earnings per share increased 6% to $0.84 from $0.79.
Both the Consumer and Flavor Solutions segments delivered strong growth.
Revenue by Segment
Forward Guidance
McCormick expects to grow sales by 3% to 5% compared to 2021, which in constant currency is 4% to 6%. McCormick projects 2022 earnings per share to be in the range of $3.07 to $3.12, compared to $2.80 of earnings per share in 2021. The Company projects 2022 adjusted earnings per share to be in the range of $3.17 to $3.22, compared to $3.05 of adjusted earnings per share in 2021, which represents an expected increase of 4% to 6%, or in constant currency 5% to 7%.
Positive Outlook
- Sales growth to be driven by brand marketing
- Sales growth to be driven by new products
- Sales growth to be driven by category management
- Sales growth to be driven by differentiated customer engagement
- Pricing actions, which in conjunction with cost savings, are expected to offset anticipated inflationary pressures.
Challenges Ahead
- Integration expenses related to the FONA acquisition of approximately $3 million in 2022.
- Approximately $30 million of special charges in 2022 that relate to previously announced organization and streamlining actions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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