MKC Reports Q2 Results
McCormick & Co reports strong Q2 with 14% sales growth in constant currency, driven by acquisition and organic growth
On Thursday, McCormick & Co (NYSE: MKC ) discussed second-quarter financial results during its earnings call.
The full transcript is provided below.
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For comprehensive financial data and transcripts, visit Access the full call at Summary McCormick & Co reported a strong second quarter with a 14% sales growth in constant currency, driven by the acquisition of McCormick de Mexico and a 2% organic growth.
The company is focusing on flavor solutions, aiming to sustain momentum with increased reinvestment to improve consumer volume trends and continued investment in brands and innovation.
Future guidance includes expected volume improvement in the third and fourth quarters, supported by refined revenue growth management, expanded distribution, and targeted marketing.
Operational highlights include share gains in spices and seasonings in key markets like Canada, France, Poland, and China, and strong performance in flavor solutions driven by volume growth in the Americas.
Management highlighted the successful integration planning for the Unilever Foods transaction, with expected mid to high single-digit adjusted EPS accretion within the first 12 months post-close.
Full Transcript Fatin Freiha, VP of Investor Relations Good morning.
This is Fatin Freiha, VP of Investor Relations.
Thank you for joining today's second quarter earnings call.
To accompany this call, we've posted a set of slides on our IR website, ir.mccormick.com.
With me this morning are Brendan Foley, Chairman, President and CEO, and Marcos Gabriel, Executive Vice President and CFO.
During this call, we will refer to certain non-GAAP financial measures.
The nature of those non-GAAP financial measures and the related reconciliations to the GAAP results are included in this morning's press release and slides.
In our comments, certain percentages are rounded.
Please refer to our presentation for complete information.
Today's presentation contains projections and other forward-looking statements.
Actual results could differ materially from those projected.
The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or other factors.
Please refer to our forward-looking statement on slide 2 for more information.
I will now turn the discussion over.
Brendan Foley, Chairman, President And Chief Executive Officer Good morning everyone and thank you for joining us.
Our strong second quarter performance demonstrates the underlying strength and resilience of our business.
We delivered robust sales growth, expanded underlying margins, and increased earnings.
Our total results were supported by the McCormick de Mexico transaction.
Organic growth was driven by the accelerated momentum in flavor solutions with growth across flavors and branded foodservice customers highlighting the benefits of our diversified flavor-focused portfolio.
Looking ahead, we expect to sustain the momentum in flavor solutions and increase reinvestment to improve consumer volume trends in organic sales.
Our enhanced margin profile and operational rigor position us well to deliver a virtuous cycle of growth through continued investment in our brands, capabilities, and innovation that drive long-term value creation.
Our fundamentals remain strong, supported by our advantaged categories and disciplined execution, giving us confidence in our ability to deliver on our 2026 outlook.
Turning now to our results on slide 4, in the second quarter total sales grew by 14% in constant currency, reflecting acquisition contribution from McCormick de Mexico of 12% and organic sales growth of 2%.
As expected, organic growth was driven by pricing in global Consumer volumes were impacted by shifting demand patterns and increased price gaps in the Americas.
Looking to the second half, we are implementing targeted actions to strengthen performance.
We expect sequential volume improvement in the third quarter and volume growth in the fourth quarter supported by refined revenue growth management initiatives, expanded distribution, targeted value-focused marketing, and innovation in EMEA and Asia Pacific.
We delivered sustained volume growth during the quarter and we expect that momentum to continue for the remainder of the year.
In global flavor solutions, volume growth exceeded expectations driven primarily by the Americas.