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Nov 30, 2024
McCormick Q4 2024 Earnings Report
McCormick's Q4 2024 performance was strong, marked by sales growth and strategic investments.
Key Takeaways
McCormick & Company reported a 3% increase in sales for the fourth quarter of 2024, driven by volume, with earnings per share at $0.80. The company's strategic investments in core categories and cost savings initiatives contributed to margin expansion and earnings growth. McCormick provided its financial outlook for fiscal year 2025.
Sales increased by 3% compared to the year-ago period, including a 1% benefit from currency.
Earnings per share was $0.80, compared to $0.81 in the previous year.
Organic sales increased 2% driven by volume and product mix.
Gross profit margin expanded by 20 basis points, driven by cost savings from the CCI program.
Revenue by Segment
Forward Guidance
McCormick's fiscal 2025 outlook reflects prioritized investments in key categories to strengthen volume trends and drive long-term profitable growth.
Positive Outlook
- Volume-led growth across both segments
- Gradual improvement in China Consumer
- Gross margin expansion partially offset by growth investments, including brand marketing.
- Operating income growth
- Strong cash flow driven by profit and working capital initiatives
Challenges Ahead
- Uncertainty of the consumer and macro environment
- Foreign currency rates to unfavorably impact sales by 1%, adjusted operating income by 1%, and adjusted earnings per share by 2%.
- Tax rate of 22% vs. 20.5% in 2024
- Mid-teens year-over-year decline in income from unconsolidated operations due to U.S. dollar strengthening vs. Mexican peso.
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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