McCormick & Co. reports Q2 sales increases
June 29, 2017
by MEAT+POULTRY Staff
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CEO Kurzius says the company is well-positioned to deliver strong financial results in 2017.
SPARKS, Md. – McCormick & Co. reported its financial results for the second quarter ended May 31, 2017. Sales rose 5 percent from the year-ago period. In constant currency, the company grew sales 7 percent in the second quarter.
Lawrence E. Kurzius, chairman, president and CEO of McCormick, said in a statement, “Our strong second quarter financial results reflect the effectiveness of our sales and profit growth strategies driven by the engagement of our employees around the world.
“Both our consumer and industrial segments contributed to our constant currency sales growth of 7 percent,” Kurzius said. “Our consumer segment delivered base and new product sales growth from the year ago period, with solid performance in the Americas and strong momentum in China, partially offset by the impact of challenging environments in Europe, Middle East and Africa (EMEA).”
McCormick’s industry business also reported sales growth, driven by new products and expanded distribution. In addition, the acquisitions of Giotti and Gourmet Garden contributed to higher sales for the company, Kurzius said.
The company’s operating income in the second quarter was $133 million compared to $125 million in the year-ago period. Adjusted operating income was $137 million, a 7 percent increase from $129 million in the second quarter of 2016, and a 9 percent increase in constant currency.
Earnings per share was $0.79 in the second quarter compared to $0.73 in the year-ago period driven by higher operating income, according to the company. Adjusted earnings per share rose 9 percent to $0.82 from $0.75.
"McCormick is a global leader in flavor – a growing and advantaged business platform. We are continuing to capitalize on the global and growing consumer interest in healthy, flavorful eating, the source and quality of ingredients, and sustainable and socially responsible practices,” Kurzius said in a statement. “We are aligned with the increased demand for great taste and healthy eating and are confident in our plans to drive growth through new products across both of our segments, through our strong brand marketing programs and with our opportunities to expand distribution. We are balancing our resources and efforts to drive sales with our work to lower costs, and are on-track to achieve at least $100 million of cost savings in 2017 led by our Comprehensive Continuous Improvement (CCI) program.”
In addition, McCormick has started its McCormick Global Enablement (MGE) initiative which will change the company’s global processes, capabilities and operating model over the next three years to build a scalable platform for future growth, Kurzius said.
"I want to recognize McCormick employees around the world for their efforts and engagement. With our vision to bring the joy of flavor to life and our steadfast focus on growth, performance, and people, we are well-positioned to deliver strong financial results in 2017 and build value for our shareholders."