NYSE$MKC
McCormick & Co Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
McCormick's Q4 2022 earnings were impacted by a challenging global environment, including high cost inflation, supply chain issues, and COVID-related disruptions in China, resulting in a sales decline of 2% but a constant currency sales increase of 2%.
McCormick's Q4 2022 sales declined by 2% compared to the previous year, but increased by 2% in constant currency. Earnings per share (EPS) was $0.69, and adjusted EPS was $0.73. The company faced challenges including high cost inflation, supply chain disruptions, and COVID-related issues in China, which impacted sales and operating income.
- Reported sales declined 2%, but constant currency sales grew 2%, within the implied fiscal year 2022 guidance range.
- COVID-related disruptions in China unfavorably impacted sales growth by approximately 2%.
- Consumer segment saw strength in consumption trends, particularly in the U.S. where fourth quarter total branded consumption grew 6%.
- Flavor Solutions segment experienced outstanding sales growth with continued momentum across all regions.
Headline financials
Revenue & EPS history
McCormick · Revenue · Quarterly
$1.7B
Revenue by segment
McCormick · $1.7B total across 2 segments · Q4 2022
- Consumer$1.04B-7.6%61.2%
- Flavor Solutions$658M+8.4%38.8%
Forward guidance
McCormick expects to grow sales by 5% to 7% in 2023, driven primarily by pricing actions and cost savings to offset inflationary pressures. Operating income is expected to grow by 10% to 12%.
Tailwinds
- Strong underlying business performance driven by sales growth
- Favorable impact to operating income from Global Operating Effectiveness Program
- Lapping of the negative impact of COVID-related disruptions in China in 2022
- Sales growth driven by pricing actions
- Continued growth through brand strength, marketing, new products, and customer engagement
Headwinds
- Partially offset by the Kitchen Basics divestiture
- Expected increase in employee incentive compensation expenses
- Earnings per share growth tempered by higher interest expense
- Higher projected effective tax rate compared to 2022
- Approximately $50 million of special charges in 2023 related to previous organizational and streamlining actions
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 Q4 2022
+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
| Quarter | Report date | Reaction (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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