McCormick Q1 Highlights: 3% Sales Growth, Earnings Beat, Reaffirms FY23 Outlook & More

Shivani Kumaresan
1 min read
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In this article:

  • McCormick & Co Inc (NYSE: MKC) reported first-quarter FY23 sales growth of 3% year-on-year to $1.57 billion, beating the consensus of $1.54 billion.

  • Flavor solutions segment sales increased by 10%, driven by 13% growth in the Americas and a 7% increase in EMEA.

  • Consumer segment sales fell 1.8%, impacted by a 9% decline in the segment's EMEA sales and a 15% decrease in the Asia Pacific region.

  • Gross profit was $562.9 million, with the margin declining 80 basis points Y/Y to 36%.

  • Adjusted operating margin compressed 40 basis points to 14.5%.

  • Adjusted EPS of $0.59 beat the consensus of $0.51.

  • McCormick held $356.8 million in cash and equivalents as of February 28, 2023.

  • The company generated an operating cash flow of $103 million during Q1.

  • Outlook: McCormick reaffirms FY23 revenue growth guidance of 5% - 7%. Operating income is expected to grow 10% - 12%.

  • MKC reaffirmed its FY23 Adjusted EPS outlook of $2.56 - $2.61 (consensus $2.57).

  • Price Action: MKC shares are trading higher by 4.78% at $77.60 in premarket on the last check Tuesday.

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This article McCormick Q1 Highlights: 3% Sales Growth, Earnings Beat, Reaffirms FY23 Outlook & More originally appeared on Benzinga.com

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