Loading...
•
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.
McCormick
McCormick
McCormick Revenue by Segment
Revenue by Segment
Consumer Revenue
CapyFin.comFlavor Solutions Revenue
CapyFin.com 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.
- The Company expects integration expenses, as well as special charges, to lower earnings per share by $0.10 in 2022.
- Partially offset by a 3% headwind from an anticipated increase in the Company's projected adjusted effective tax rate.
- Anticipated inflationary pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income