MKC Beats Estimates

McCormick & Company Inc. (NYSE: MKC ) stock rose more than 5% on Thursday after the spice and flavoring company reported second-quarter results that exceeded Wall Street expectations on both revenue and adjusted earnings. 912 billion. Adjusted earnings came in at 80 cents per share, topping analysts’ expectations of 69 cents.

GAAP diluted earnings were 56 cents per share, down from 65 cents a year earlier. 7% favorable currency impact, while the acquisition of McCormick de Mexico contributed 12 percentage points to sales growth. 7%, driven by pricing. 8 million a year earlier.

4%. 2%, supported by the McCormick de Mexico acquisition, pricing actions, cost savings and a $28 million IEEPA tariff refund, which contributed about 140 basis points to margin expansion. Higher commodity costs and expenses related to the Middle East conflict partially offset those gains. 143 billion, helped by a 20% contribution from McCormick de Mexico and a 2% currency benefit.

Organic sales increased 1% as higher pricing offset weaker volume and product mix. Adjusted operating income for the segment rose 33% to $217 million. Flavor Solutions posted net sales of $794 million, up 9% from a year earlier. Results included a 3% currency benefit and a 3% contribution from McCormick de Mexico.

Organic sales rose 3%, driven by pricing and higher volume and product mix. Adjusted operating income increased 26% to $120 million. 7 million during the first six months of the fiscal year. 2 million.

60 billion. 09. 88 billion. CEO Brendan M.

” During the earnings call, management said near-term profit growth will be pressured by ERP-related technology spending, higher incentive compensation and increased brand marketing investment. The company added that cost inflation is tracking near the high end of its mid-single-digit outlook, at about 6%, primarily because of the Middle East conflict. Management expects most of the tariff refund to offset those higher costs. Executives also said Consumer volumes should improve sequentially in the third quarter and return to growth in the fourth quarter.

Flavor Solutions continues to benefit from faster-than-expected customer reformulation activity and growing demand for health-and-wellness products. McCormick said changing consumer preferences toward healthier eating are creating new growth opportunities across its Flavor Solutions business. The company pointed to strong innovation activity in protein, sports nutrition, beverages and better-for-you products, while noting that health and wellness initiatives now account for a majority of customer project briefs. Management also said reformulation projects are increasing as food manufacturers adapt products to meet evolving consumer demand.

23 at the time of publication on Thursday, according to Pro data. Photo via Shutterstock