NYSE$MKC

McCormick & Co Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

McCormick's third quarter performance reflected sales comparable to the prior year, driven by volume growth, and reaffirmed the fiscal year 2024 outlook for sales and operating profit.

McCormick reported third-quarter sales comparable to the prior year, with 1% volume growth offset by pricing. Operating income increased to $287 million, and earnings per share rose to $0.83. The company reaffirmed its fiscal 2024 sales and operating profit growth outlook and increased its earnings per share outlook.

  • Sales in the third quarter were comparable to the year-ago period, reflecting volume growth of 1%, partially offset by price.
  • Operating income was $287 million in the third quarter compared to $245 million in the year-ago period.
  • Earnings per share was $0.83 in the third quarter as compared to $0.63 in the year-ago period.
  • McCormick reaffirmed its sales and operating profit growth outlook for fiscal year 2024 and increased its earnings per share outlook.

Headline financials

Total Revenue

$1.68B

Previous: $1.68B-0.3%
EPS

$0.83

Previous: $0.65+27.7%
Operating Income Margin

17.1%

No prior period
Income Tax Expense

$41M

No prior period
Adj. Income Tax Expense

$41.6M

No prior period
Gross Profit Margin

38.7%

No prior period
Adjusted Gross Profit Margin

38.7%

No prior period
Adjusted Operating Income Margin

17.2%

No prior period
Capital Expenditures

-$189M

Previous: -$187M-1.1%
Free Cash Flow

$33.8M

Previous: -$17.1M+297.7%
Net Income

$223M

Previous: $170M+31.2%
Operating Income

$287M

Previous: $245M+16.9%
Gross Profit

$650M

Previous: $623M+4.4%
Cash & Equivalents

$201M

Previous: $155M+29.8%
Total Assets

$13.2B

Previous: $13B+1.7%
Stock-Based Comp

$8.8M

Previous: $12.6M-30.2%

Revenue & EPS history

McCormick · Revenue · Quarterly

$1.68B

Q3 2024-0.3%vs Q3 2023
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

McCormick · $1.94B total across 2 segments · Q2 2026

  • Consumer
    $1.14B
  • Flavor Solutions
    $794M

Forward guidance

McCormick's 2024 outlook reflects the Company's commitment to strengthen volume trends and prioritize investments to drive profitable results and return to differentiated volume-led growth as the year progresses. The Company's CCI and GOE programs are fueling growth investments while also driving operating margin expansion. The Company expects the impact of foreign currency rates in 2024 to be minimal.

Tailwinds

  • Sales to range between (1)% to 1% compared to 2023, with minimal impact from currency.
  • Favorable impact from the prior year's pricing actions.
  • Improve volume trends as the year progresses through the power of its brands and its targeted investments.
  • Operating income in 2024 is expected to grow by 9% to 11% from $963 million in 2023.
  • Adjusted operating income is expected to increase 4% to 6%, with minimal impact from currency, driven by gross margin expansion partially offset by a significant increase in brand marketing investments.

Headwinds

  • Strategic decisions in 2023 to discontinue low margin business and divest a small canning business will impact volume growth in 2024.
  • Approximately $15 million of special charges in 2024 that relate to previous organizational and streamlining actions.
  • Significant increase in brand marketing investments will partially offset gross margin expansion.
  • Unspecified risks related to the Company's filings with the Securities and Exchange Commission.
  • The company's inability to achieve expected and/or needed cost savings or margin improvements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.4%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+9.6%

Q1 2023

Best reaction

-12.7%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026+0.9%-3.7%
Q4 2025-7.1%-4.7%+2.9%
Q3 2025-3.9%-2.4%-6.2%
Q2 2025-1.7%-0.8%-2.5%
Q1 2025-0.1%+1.4%-6.6%
Q4 2024+2.1%+4.7%+9.4%
Q3 2024-0.3%-2.1%-4.9%
Q2 2024+4.8%+3.8%+12.0%
Q1 2024+8.7%+9.8%+8.0%
Q4 2023+5.0%+5.3%+3.5%
Q3 2023-8.4%-13.6%-13.2%
Q2 2023-5.0%-4.0%-2.2%
Q1 2023+9.6%+12.4%+18.0%
Q4 2022-4.5%-3.7%-3.8%
Q3 2022+0.2%+3.5%+7.8%
Q2 2022-4.1%-4.8%+0.6%
Q1 2022-0.4%+4.4%+6.3%
Q4 2021+6.8%+9.3%+4.6%
Q3 2021-3.6%-4.3%-4.1%
Q2 2021+0.3%-0.3%-4.7%
Q1 2021-1.1%-1.0%+0.5%
Q4 2020-4.8%-4.9%-10.4%
Q3 2020-0.6%-1.2%-5.8%
Q2 2020+2.3%+4.1%+12.3%
Q1 2020-3.2%+2.6%+9.6%
Q4 2019-3.1%-5.4%-13.0%
Q3 2019+5.4%+8.1%+2.8%
Q2 2019+2.9%+4.9%+7.9%
Q1 2019+2.4%+4.7%+4.9%
Q4 2018-12.7%-12.8%-2.3%
Q3 2018+1.4%+2.7%+6.5%
Q2 2018+9.6%+8.9%+11.1%
Q1 2018-1.0%-0.5%-0.1%
Q4 2017+7.4%+7.9%+6.1%
Q3 2017+6.4%+1.7%+3.0%
Q2 2017-1.5%-1.7%-3.5%
Q1 2017-3.3%-3.8%-1.3%
Q4 2016+1.6%+1.5%+5.6%
Q3 2016-0.5%-1.6%-2.0%
Q2 2016+3.1%+4.2%-0.4%
Q1 2016+2.5%
Q4 2015+7.0%
Q3 2015-3.1%
Q2 2015-1.2%
Q1 2015+3.8%
Q4 2014-0.4%
Q3 2014+4.4%
Q2 2014+0.5%
Q1 2014+5.3%
Q4 2013-7.0%
Q3 2013-3.9%
Q2 2013-2.3%
Q1 2013-1.5%
Q4 2012-7.1%
Q3 2012-1.4%
Q2 2012+2.9%
Q1 2012+2.3%
Q4 2010-0.9%
Q4 2011-0.9%
Q3 2011+1.1%
Q2 2011+0.1%
Q2 2010+0.1%
Q1 2010+0.2%
Q1 2011+0.2%
Q4 2008-0.5%
Q3 2010-1.1%
Q4 2009-1.1%
Q3 2009-1.1%

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