McCORMICK REPORTS STRONG 2025 FINANCIAL RESULTS AND PROVIDES 2026 OUTLOOK
-
Net sales increased 3% in the fourth quarter from the year-ago period and included a 1% favorable impact from currency. Organic sales grew 2% compared to the year-ago period. Earnings per share was
$0.84 in the fourth quarter compared to$0.80 in the year-ago period. Adjusted earnings per share was$0.86 compared to$0.80 in the year-ago period. -
Operating income was
$311 million in the fourth quarter compared to$306 million in the year-ago period. Adjusted operating income was$317 million compared to$308 million in the year-ago period. -
For fiscal year 2025, sales increased 2% from the prior year. As there was minimal impact from currency, organic sales were the same as reported sales. The sales increase was driven by volume and pricing. Earnings per share of
$2.93 compared to$2.92 in 2024. Adjusted earnings per share was$3.00 in 2025 compared to$2.95 in 2024. -
Operating income was
$1,071 million in 2025 compared to$1,060 million in 2024. Adjusted operating income was$1,094 million compared to$1,070 million in the year-ago period. -
Cash flow from operations was
$962 million for fiscal year 2025 compared to$922 million in 2024. In November, the Board authorized a 7% increase to the quarterly dividend, marking the 40th consecutive year of dividend increases. - The Company's 2026 outlook reflects continued investment in core categories to sustain its differentiated net sales and volume trends, expand operating margins, and drive shareholder value.
Chairman, President, and CEO's Remarks
"As we move into 2026, McCormick is operating from a position of strength, a solid foundation, and a clear focus on sustainable, profitable growth. Our outlook reflects continued top-line momentum, gross margin recovery, and strong operating profit performance, supported by executing on our strategic priorities, efficiency gains, and the strategic acquisition of a controlling interest in
"Lastly, I am proud of and grateful to McCormick employees worldwide. Their dedication, agility, and commitment to excellence continue to propel our success. Together, we are executing with discipline, advancing our leadership in flavor, and delivering differentiated results for consumers, customers, and shareholders."
Fourth Quarter and Fiscal Year 2025 Results
Sales Metrics
|
|
Fourth Quarter 2025 |
||||
|
|
As |
|
Organic1 |
||
|
|
% Change |
|
Volume/ |
Price |
% Change |
|
Total |
2.9 % |
|
0.2 % |
1.9 % |
2.1 % |
|
|
|
|
|
|
|
|
Total Consumer |
3.9 % |
|
1.0 % |
2.1 % |
3.1 % |
|
|
3.1 % |
|
1.0 % |
2.2 % |
3.2 % |
|
EMEA |
8.5 % |
|
0.8 % |
2.3 % |
3.1 % |
|
APAC |
0.7 % |
|
1.8 % |
— % |
1.8 % |
|
|
|
|
|
|
|
|
Total Flavor Solutions |
1.4 % |
|
(0.9) % |
1.6 % |
0.7 % |
|
|
2.1 % |
|
(1.6) % |
3.1 % |
1.5 % |
|
EMEA |
(1.1) % |
|
(1.3) % |
(1.8) % |
(3.1) % |
|
APAC |
1.7 % |
|
4.5 % |
(2.0) % |
2.5 % |
|
|
Fiscal Year 2025 |
||||
|
|
As |
|
Organic1 |
||
|
|
% Change |
|
Volume/ |
Price |
% Change |
|
Total |
1.7 % |
|
1.2 % |
0.7 % |
1.9 % |
|
|
|
|
|
|
|
|
Total Consumer |
2.6 % |
|
2.1 % |
0.3 % |
2.4 % |
|
|
2.0 % |
|
2.4 % |
(0.1) % |
2.3 % |
|
EMEA |
6.0 % |
|
1.4 % |
2.1 % |
3.5 % |
|
APAC |
1.0 % |
|
1.7 % |
0.2 % |
1.9 % |
|
|
|
|
|
|
|
|
Total Flavor Solutions |
0.5 % |
|
(0.2) % |
1.3 % |
1.1 % |
|
|
0.5 % |
|
(0.7) % |
2.6 % |
1.9 % |
|
EMEA |
(2.2) % |
|
(2.2) % |
(2.1) % |
(4.3) % |
|
APAC |
6.2 % |
|
8.6 % |
(1.9) % |
6.7 % |
|
|
|
1 Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. For the fourth quarter and fiscal year 2025, organic sales are equal to constant currency sales |
Profitability Metrics
($ in millions except per share data)
|
|
Fourth Quarter 2025 |
||||
|
|
As Reported |
|
Adjusted |
||
|
|
Q4 2025 |
vs. 2024 |
|
Q4 2025 |
vs. 2024 |
|
Gross profit |
$ 720.3 |
(0.3) % |
|
$ 721.4 |
(0.1) % |
|
Gross profit margin |
38.9 % |
(130) bps |
|
39.0 % |
(120) bps |
|
|
|
|
|
|
|
|
Operating income |
$ 311.1 |
1.6 % |
|
$ 316.6 |
2.9 % |
|
Operating income margin |
16.8 % |
(20) bps |
|
17.1 % |
0 bps |
|
|
|
|
|
|
|
|
Net income |
$ 226.6 |
5.3 % |
|
$ 230.9 |
6.7 % |
|
|
|
|
|
|
|
|
Earnings per share - diluted |
$ 0.84 |
5.0 % |
|
$ 0.86 |
7.5 % |
|
|
|
|
|
|
|
|
|
Fiscal Year 2025 |
||||
|
|
As Reported |
|
Adjusted |
||
|
|
FY 2025 |
vs. 2024 |
|
FY 2025 |
vs. 2024 |
|
Gross profit |
|
— % |
|
|
0.1 % |
|
Gross profit margin |
37.9 % |
(60) bps |
|
37.9 % |
(60) bps |
|
|
|
|
|
|
|
|
Operating income |
|
1.0 % |
|
|
2.3 % |
|
Operating income margin |
15.7 % |
(10) bps |
|
16.0 % |
10 bps |
|
|
|
|
|
|
|
|
Net income |
$ 789.4 |
0.1 % |
|
$ 807.1 |
1.4 % |
|
|
|
|
|
|
|
|
Earnings per share - diluted |
$ 2.93 |
0.3 % |
|
$ 3.00 |
1.7 % |
Fourth Quarter 2025 Results
Net sales in the fourth quarter increased 3% from the year-ago period and included a 1% favorable impact from currency. Organic sales increased 2%, driven by growth in both segments.
- Consumer segment net sales increased 4% from the fourth quarter of 2024 to
$1,127 million , including a 1% favorable impact from currency. Organic sales increased 3%, driven by a 2% increase in price, reflecting tariff and inflation related pricing actions, and 1% increase in volume and product mix. - Flavor Solutions segment sales increased 2% from the fourth quarter of 2024 to
$723 million , with a 1% impact from currency. Organic sales increased 1% driven by a 2% contribution from price, partially offset by a 1% decline in volume and product mix.
Gross profit for the fourth quarter decreased by
Operating income was
- Consumer segment operating income, excluding special charges, increased 1% to
$231 million in the fourth quarter of 2025 compared to the year-ago period, with minimal impact from currency. The increase was driven by higher sales and decreased SG&A expenses, partially offset by increased commodity costs and tariffs. - Flavor Solutions segment operating income, excluding special charges, increased 7% to
$86 million in the fourth quarter of 2025 compared to the year-ago period, or 6% in constant currency. This increase was driven by higher sales and decreased SG&A expenses, partially offset by increased commodity costs and tariffs.
Earnings per share was
Fiscal Year 2025 Results
Net sales increased 2% in 2025 as compared to 2024 with minimal impact from currency. Organic sales increased 2%, driven by volume and product mix growth of 1%, and a 1% contribution from price.
- Consumer segment net sales increased 2% from 2024 to
$3,950 million , with minimal impact from currency. Organic sales increased 2%, driven by volume growth. - Flavor Solutions segment net sales were comparable to 2024 at
$2,890 million , which included a 1% unfavorable impact from currency. Organic sales increased 1%, driven by price.
Gross profit increased by
Operating income was
- Consumer segment operating income, excluding special charges, decreased 1% to
$735 million in 2025 compared to the year-ago period, with minimal impact from currency. The decrease was primarily due to increased commodity costs and tariffs, as well as investments for future growth, partially offset by decreased SG&A expenses, driven by the Company's CCI program, including SG&A streamlining initiatives. - Flavor Solutions segment operating income, excluding special charges, grew 9% to
$359 million in 2025 compared to the year-ago period, or 11% in constant currency. The increase was driven by pricing and decreased SG&A expenses, partially offset by higher commodity costs and tariffs.
Earnings per share was
Net cash provided by operating activities was
Fiscal Year 2026 Financial Outlook
McCormick's fiscal 2026 outlook continues to reflect the Company's prioritized investments in key categories to sustain its volume trends and drive long-term profitable growth while appreciating the uncertainty of the consumer and macro environment, including global trade policies. The Company's CCI program is continuing to fuel growth investments while also driving operating margin expansion. Lastly, the outlook reflects meaningful contributions from the acquisition of a controlling interest in
|
|
Fiscal Year 2026 Guide (1) |
|
|
|
Reported |
Constant |
|
Net sales growth |
13% to 17% |
12% to 16% |
|
Contribution from acquisition of |
11% to 13% |
11% to 13% |
|
Organic sales growth (2) |
--- |
1% to 3% |
|
|
|
|
|
Adjusted operating income |
16% to 20% |
15% to 19% |
|
|
|
|
|
Adjusted earnings per share |
2% to 5% |
1% to 4% |
|
|
|
(1) Amounts are rounded with percentages calculated from the underlying amounts. |
|
(2) Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. |
Fiscal Year 2026 Guide - Expectations:
- Sustained volume growth and increased pricing benefits relative to the prior year.
Adjusted Operating Income:
- Adjusted gross margin expansion to reflect recovery from 2025. Favorable impacts from organic sales growth,
McCormick de Mexico accretion, and the Company's CCI program, partially offset by increased commodity costs. - SG&A expenses impacted by cost headwinds including digital transformation and build back of incentive compensation, as well as growth investments. In addition, SG&A is expected to benefit from the Company's CCI program, inclusive of streamlining initiatives.
Adjusted Earnings per Share:
- Adjusted operating income growth partially offset by:
- Tax rate of approximately 24% vs. 21.5% in 2025.
- Higher net interest expense, primarily associated with the McCormick de Mexico transaction.
- Unconsolidated operations expense, reflects elimination of the 25% minority interest in McCormick de Mexico Net Income attributable to Grupo Herdez.
The Company expects foreign currency rates to favorably impact net sales by 1%, adjusted operating income by 1%, and adjusted earnings per share by 1%.
For fiscal 2026, the Company expects strong cash flow driven by profit and working capital initiatives and anticipates returning a significant portion of cash flow to shareholders through dividends.
The Company's outlook for 2026 adjusted operating income and adjusted earnings per share are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results. The Company is unable to reconcile its projected adjusted operating income to its projected reported operating income for 2026 because it cannot reasonably predict the amount of special charges, including transaction and integration expenses during this time period.
The Company expects 2026 transaction and integration expenses to include a step-up in inventory to fair value related to the recent acquisition of an additional 25% ownership interest in
Similarly, the Company is unable to reconcile its projected adjusted earnings per share to projected reported earnings per share for 2026 due to the same factors affecting reported operating income, and because the Company cannot reasonably predict the amount of the anticipated non-cash gain from remeasuring the previously held equity interest in
Non-GAAP Financial Measures
The tables below include financial measures of organic net sales, adjusted gross profit, adjusted gross profit margin, adjusted operating income, adjusted operating income margin, adjusted income tax expense, adjusted income tax rate, adjusted net income, and adjusted diluted earnings per share. These represent non-GAAP financial measures which are prepared as a complement to our financial results prepared in accordance with
Special charges - Special charges consist of expenses and income associated with certain actions undertaken by us to reduce fixed costs, simplify or improve processes, and improve our competitiveness. Included in special charges are transaction and integration costs.
We believe that these non-GAAP financial measures are important. The exclusion of the items noted above provides additional information that enables enhanced comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends.
These non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP; however, they should not be viewed as a substitute for, or superior to, GAAP results. Furthermore, these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, as they may calculate them differently than we do. We intend to continue providing these non-GAAP financial measures as part of our future earnings discussions, ensuring consistency in our financial reporting. A reconciliation of these non-GAAP financial measures to GAAP financial results is provided below:
|
(in millions except per share data) |
Three Months Ended |
|
Year Ended |
||||
|
|
11/30/2025 |
|
11/30/2024 |
|
11/30/2025 |
|
11/30/2024 |
|
Gross profit |
$ 720.3 |
|
$ 722.2 |
|
$ 2,592.2 |
|
$ 2,591.0 |
|
Impact of special charges included in cost of goods |
1.1 |
|
— |
|
2.1 |
|
— |
|
Adjusted gross profit |
$ 721.4 |
|
$ 722.2 |
|
$ 2,594.3 |
|
$ 2,591.0 |
|
Gross profit margin(1) |
38.9 % |
|
40.2 % |
|
37.9 % |
|
38.5 % |
|
Impact of special charges(1) |
0.1 % |
|
— % |
|
— % |
|
— % |
|
Adjusted gross profit margin(1) |
39.0 % |
|
40.2 % |
|
37.9 % |
|
38.5 % |
|
|
|
|
|
|
|
|
|
|
Operating income |
$ 311.1 |
|
$ 306.2 |
|
$ 1,070.8 |
|
$ 1,060.3 |
|
Impact of special charges |
5.5 |
|
1.6 |
|
23.2 |
|
9.5 |
|
Adjusted operating income |
$ 316.6 |
|
$ 307.8 |
|
$ 1,094.0 |
|
$ 1,069.8 |
|
% increase versus prior year |
2.9 % |
|
|
|
2.3 % |
|
|
|
Operating income margin(2) |
16.8 % |
|
17.0 % |
|
15.7 % |
|
15.8 % |
|
Impact of special charges(2) |
0.3 % |
|
0.1 % |
|
0.3 % |
|
0.1 % |
|
Adjusted operating income margin(2) |
17.1 % |
|
17.1 % |
|
16.0 % |
|
15.9 % |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
$ 65.6 |
|
$ 67.2 |
|
|
|
$ 184.0 |
|
Impact of special charges |
1.2 |
|
0.3 |
|
5.5 |
|
2.4 |
|
Adjusted income tax expense |
$ 66.8 |
|
$ 67.5 |
|
|
|
$ 186.4 |
|
Income tax rate(3) |
23.9 % |
|
25.4 % |
|
21.4 % |
|
20.5 % |
|
Impact of special charges |
— % |
|
— % |
|
0.1 % |
|
— % |
|
Adjusted income tax rate(3) |
23.9 % |
|
25.4 % |
|
21.5 % |
|
20.5 % |
|
|
|
|
|
|
|
|
|
|
Net income |
$ 226.6 |
|
$ 215.2 |
|
|
|
$ 788.5 |
|
Impact of special charges |
4.3 |
|
1.3 |
|
17.7 |
|
7.1 |
|
Adjusted net income |
$ 230.9 |
|
$ 216.5 |
|
|
|
$ 795.6 |
|
% increase versus prior year |
6.7 % |
|
|
|
1.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share—diluted |
$ 0.84 |
|
$ 0.80 |
|
$ 2.93 |
|
$ 2.92 |
|
Impact of special charges |
0.02 |
|
— |
|
0.07 |
|
0.03 |
|
Adjusted earnings per share—diluted |
$ 0.86 |
|
$ 0.80 |
|
$ 3.00 |
|
$ 2.95 |
|
% increase versus prior year |
7.5 % |
|
|
|
1.7 % |
|
|
|
|
|
|
|
(1) |
Gross profit margin, impact of special charges, and adjusted gross profit margin are calculated as gross profit, impact of special charges, and adjusted gross profit as a percentage of net sales for each period presented. |
|
|
|
|
|
|
(2) |
Operating income margin, impact of special charges, and adjusted operating income margin is calculated as operating income, impact of special charges, and adjusted operating income as a percentage of net sales for each period presented. |
|
|
|
|
|
|
(3) |
Income tax rate is calculated as income tax expense as a percentage of income from consolidated operations before income taxes. Adjusted income tax rate is calculated as adjusted income tax expense as a percentage of income from consolidated operations before income taxes excluding special charges of |
|
Because we are a multi-national company, we are subject to variability of our reported
We provide organic net sales growth rates for our consolidated net sales and segment net sales. We believe that organic net sales growth rates provide useful information to investors because they provide transparency to underlying performance in our net sales by excluding the effect that foreign currency exchange rate fluctuations, acquisitions, and divestitures, as applicable, have on year-to-year comparability. A reconciliation of these measures from reported net sales growth rates, the relevant GAAP measures, are included in the tables set forth below.
Percentage changes in sales and adjusted operating income expressed on a constant currency basis are presented excluding the impact of foreign currency exchange. To present this information for historical periods, current period results for entities reporting in currencies other than the
|
|
Three months ended |
||
|
|
Percentage Change as |
Impact of Foreign |
Percentage Change on |
|
Total |
2.9 % |
0.8 % |
2.1 % |
|
|
|
|
|
|
Total Consumer |
3.9 % |
0.8 % |
3.1 % |
|
|
3.1 % |
(0.1) % |
3.2 % |
|
EMEA |
8.5 % |
5.4 % |
3.1 % |
|
APAC |
0.7 % |
(1.1) % |
1.8 % |
|
|
|
|
|
|
Total Flavor Solutions |
1.4 % |
0.7 % |
0.7 % |
|
|
2.1 % |
0.6 % |
1.5 % |
|
EMEA |
(1.1) % |
2.0 % |
(3.1) % |
|
APAC |
1.7 % |
(0.8) % |
2.5 % |
|
|
Twelve months ended |
||
|
|
Percentage Change as |
Impact of Foreign |
Percentage Change on |
|
Total |
1.7 % |
(0.2) % |
1.9 % |
|
|
|
|
|
|
Total Consumer |
2.6 % |
0.2 % |
2.4 % |
|
|
2.0 % |
(0.3) % |
2.3 % |
|
EMEA |
6.0 % |
2.5 % |
3.5 % |
|
APAC |
1.0 % |
(0.9) % |
1.9 % |
|
|
|
|
|
|
Total Flavor Solutions |
0.5 % |
(0.6) % |
1.1 % |
|
|
0.5 % |
(1.4) % |
1.9 % |
|
EMEA |
(2.2) % |
2.1 % |
(4.3) % |
|
APAC |
6.2 % |
(0.5) % |
6.7 % |
|
|
|
|
Three months ended |
||||
|
|
|
|
Percentage Change |
|
Impact of Foreign |
|
Percentage Change on |
|
Adjusted operating income |
|
|
|
|
|
|
|
|
Consumer segment |
|
|
1.3 % |
|
0.3 % |
|
1.0 % |
|
Flavor Solutions segment |
|
|
7.4 % |
|
0.9 % |
|
6.5 % |
|
Total adjusted operating income |
|
|
2.9 % |
|
0.5 % |
|
2.4 % |
|
|
|
|
Twelve months ended |
||||
|
|
|
|
Percentage Change |
|
Impact of Foreign |
|
Percentage Change on |
|
Adjusted operating income |
|
|
|
|
|
|
|
|
Consumer segment |
|
|
(0.7) % |
|
(0.1) % |
|
(0.6) % |
|
Flavor Solutions segment |
|
|
9.0 % |
|
(1.7) % |
|
10.7 % |
|
Total adjusted operating income |
|
|
2.3 % |
|
(0.5) % |
|
2.8 % |
To present the percentage change in projected 2026 net sales, adjusted operating income, and adjusted earnings per share (diluted) on a constant currency basis, the projected local currency net sales, adjusted operating income, and adjusted net income for entities reporting in currencies other than the
|
|
Projections for the Year Ending November 30, 2026 |
||||
|
Percentage change in net sales |
13% to 17% |
||||
|
Impact of favorable foreign currency exchange |
1 % |
||||
|
Percentage change in net sales in constant currency |
12% to 16% |
||||
|
Impact of acquisition |
11% to 13% |
||||
|
Percentage change in organic net sales |
1% to 3% |
||||
|
|
|
|
|
|
|
|
Percentage change in adjusted operating income |
16% to 20% |
||||
|
Impact of favorable foreign currency exchange |
1 % |
||||
|
Percentage change in adjusted operating income in constant |
15% to 19% |
||||
|
|
|
|
|
|
|
|
Percentage change in adjusted earnings per share - diluted |
2% to 5% |
||||
|
Impact of favorable foreign currency exchange |
1 % |
||||
|
Percentage change in adjusted earnings per share - diluted |
1% to 4% |
||||
Live Webcast
As previously announced, McCormick will hold a conference call with analysts today at
Forward-Looking Information
Certain information contained in this release, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges including transaction and integration expenses, acquisitions, brand marketing support, volume and product mix, income tax expense, and the impact of foreign currency rates are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "believe," "plan," and similar expressions. These statements may relate to: general economic and industry conditions, including consumer spending rates, recessions, interest rates, and availability of capital; expectations regarding sales growth potential in various geographies and markets, including the impact of brand marketing support, product innovation, and customer, channel, category, heat platform, and e-commerce expansion; the expected results of operations of businesses acquired, including the additional 25% ownership interest in
These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by factors such as: the Company's ability to drive revenue growth; the Company's ability to increase pricing to offset, or partially offset, inflationary pressures on the cost of our products; damage to the Company's reputation or brand name; loss of brand relevance; increased private label use; the Company's ability to offset cost pressures or business impacts related to trade policies, including tariffs; the Company's ability to drive productivity improvements, including those related to our CCI program and other streamlining actions; product quality, labeling, or safety concerns; negative publicity about our products; actions by, and the financial condition of, competitors and customers; the longevity of mutually beneficial relationships with our large customers; the ability to identify, interpret and react to changes in consumer preference and demand; business interruptions due to natural disasters, unexpected events or public health crises; issues affecting the Company's supply chain and procurement of raw materials, including fluctuations in the cost and availability of raw and packaging materials; labor shortage, turnover and labor cost increases; the impact of changing political and geopolitical conditions, including conflicts and the potential for broader economic disruption; government regulation, and changes in legal and regulatory requirements and enforcement practices; the lack of successful acquisition and integration of new businesses; global economic and financial conditions generally, availability of financing, interest and inflation rates, and the imposition of tariffs, quotas, trade barriers and other similar restrictions; foreign currency fluctuations; the effects of our amount of outstanding indebtedness and related level of debt service as well as the effects that such debt service may have on the Company's ability to borrow or the cost of any such additional borrowing, our credit rating, and our ability to react to certain economic and industry conditions; impairments of indefinite-lived intangible assets; assumptions we have made regarding the investment return on retirement plan assets, and the costs associated with pension obligations; the stability of credit and capital markets; risks associated with the Company's information technology systems, including the threat of data breaches and cyber-attacks; the Company's inability to successfully implement our business transformation initiative; fundamental changes in tax laws; including interpretations and assumptions we have made, and guidance that may be issued, and volatility in our effective tax rate; climate change; Environmental, Social and Governance (ESG) matters; infringement of intellectual property rights, and those of customers; litigation, legal and administrative proceedings; the Company's inability to achieve expected and/or needed cost savings or margin improvements; negative employee relations; and other risks described herein under Part I, Item 1A "Risk Factors."
Actual results could differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
About McCormick
Founded in 1889 and headquartered in
To learn more, visit: www.mccormickcorporation.com or follow
For information contact:
Investor Relations:
(Financial tables follow)
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Fourth Quarter Report |
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Consolidated Income Statement |
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(In millions except per-share data) |
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Three months ended |
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Year ended |
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Net sales |
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$ 1,850.4 |
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$ 1,798.0 |
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$ 6,840.3 |
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$ 6,723.7 |
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Cost of goods sold |
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1,130.1 |
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1,075.8 |
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4,248.1 |
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4,132.7 |
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Gross profit |
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720.3 |
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722.2 |
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2,592.2 |
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2,591.0 |
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Selling, general and administrative |
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404.8 |
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414.4 |
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1,500.3 |
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1,521.2 |
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Special charges |
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4.4 |
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1.6 |
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21.1 |
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9.5 |
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Operating income |
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311.1 |
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306.2 |
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1,070.8 |
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1,060.3 |
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Interest expense |
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46.5 |
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52.7 |
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196.2 |
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209.4 |
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Other income, net |
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9.4 |
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10.7 |
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38.4 |
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47.4 |
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Income from consolidated operations |
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274.0 |
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264.2 |
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913.0 |
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898.3 |
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Income tax expense |
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65.6 |
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67.2 |
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195.8 |
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184.0 |
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Net income from consolidated |
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208.4 |
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197.0 |
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717.2 |
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714.3 |
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Income from unconsolidated |
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18.2 |
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18.2 |
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72.2 |
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74.2 |
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Net income |
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$ 226.6 |
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$ 215.2 |
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$ 789.4 |
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$ 788.5 |
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Earnings per share–basic |
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$ 0.84 |
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$ 0.80 |
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$ 2.94 |
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$ 2.94 |
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Earnings per share–diluted |
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$ 0.84 |
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$ 0.80 |
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$ 2.93 |
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$ 2.92 |
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Average shares outstanding - basic |
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268.6 |
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268.4 |
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268.5 |
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$ 268.5 |
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Average shares outstanding - diluted |
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269.3 |
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269.7 |
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269.4 |
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269.6 |
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Fourth Quarter Report |
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Consolidated Balance Sheet (Unaudited) |
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(In millions) |
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Assets |
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Cash and cash equivalents |
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$ 95.9 |
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$ 186.1 |
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Trade accounts receivable, net of allowances |
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628.9 |
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587.4 |
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Inventories |
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1,272.0 |
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1,239.9 |
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Prepaid expenses and other current assets |
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141.3 |
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125.6 |
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Total current assets |
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2,138.1 |
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2,139.0 |
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Property, plant and equipment, net |
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1,448.8 |
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1,413.0 |
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5,301.3 |
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5,227.5 |
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Intangible assets, net |
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3,293.1 |
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3,318.9 |
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Other long-term assets |
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1,019.1 |
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971.9 |
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Total assets |
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$ 13,200.4 |
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$ 13,070.3 |
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Liabilities |
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Short-term borrowings and current portion of long-term debt |
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$ 890.5 |
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$ 748.3 |
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Trade accounts payable |
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1,259.4 |
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1,238.1 |
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Other accrued liabilities |
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912.3 |
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896.4 |
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Total current liabilities |
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3,062.2 |
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2,882.8 |
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Long-term debt |
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3,105.8 |
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3,593.6 |
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Deferred taxes |
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835.8 |
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840.5 |
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Other long-term liabilities |
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428.5 |
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436.6 |
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Total liabilities |
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7,432.3 |
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7,753.5 |
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Shareholders' equity |
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Common stock |
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2,283.2 |
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2,237.2 |
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Retained earnings |
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3,816.4 |
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3,545.0 |
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Accumulated other comprehensive loss |
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(363.1) |
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(491.2) |
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Total McCormick shareholders' equity |
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5,736.5 |
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5,291.0 |
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Non-controlling interests |
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31.6 |
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25.8 |
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Total shareholders' equity |
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5,768.1 |
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5,316.8 |
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Total liabilities and shareholders' equity |
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$ 13,200.4 |
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$ 13,070.3 |
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Fourth Quarter Report |
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McCormick & Company, Incorporated |
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Consolidated Cash Flow Statement (Unaudited) |
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(In millions) |
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Year Ended |
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Operating activities |
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Net income |
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$ 789.4 |
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$ 788.5 |
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Adjustments to reconcile net income to net cash provided by |
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Depreciation and amortization |
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231.3 |
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208.8 |
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Stock-based compensation |
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46.2 |
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47.4 |
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Gain on sale of assets |
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— |
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(2.1) |
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Deferred income tax benefit |
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(6.6) |
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(30.3) |
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Income from unconsolidated operations |
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(72.2) |
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(74.2) |
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Changes in operating assets and liabilities (net of effect of |
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Trade accounts receivable |
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(14.7) |
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(20.5) |
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Inventories |
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23.9 |
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(125.0) |
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Trade accounts payable |
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1.2 |
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135.1 |
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Other assets and liabilities |
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(94.1) |
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(72.6) |
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Dividends received from unconsolidated affiliates |
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57.8 |
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66.8 |
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Net cash flow provided by operating activities |
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962.2 |
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921.9 |
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Investing activities |
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Acquisition of business |
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(34.1) |
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— |
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Capital expenditures (including software) |
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(221.8) |
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(274.9) |
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Other investing activities |
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0.7 |
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5.9 |
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Net cash flow used in investing activities |
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(255.2) |
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(269.0) |
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Financing activities |
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Short-term borrowings (repayments), net |
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(101.4) |
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211.1 |
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Long-term debt borrowings |
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2.7 |
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495.5 |
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Payment of debt issuance costs |
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— |
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(1.0) |
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Long-term debt repayments |
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(267.9) |
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(801.1) |
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Proceeds from exercised stock options |
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20.9 |
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17.5 |
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Taxes withheld and paid on employee stock awards |
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(13.2) |
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(9.0) |
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Common stock acquired by purchase |
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(34.8) |
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(53.1) |
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Dividends paid |
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(483.0) |
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(451.0) |
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Other financing activities |
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35.8 |
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8.0 |
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Net cash flow used in financing activities |
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(840.9) |
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(583.1) |
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Effect of exchange rate changes on cash and cash equivalents |
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43.7 |
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(50.3) |
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Increase (decrease) in cash and cash equivalents |
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(90.2) |
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19.5 |
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Cash and cash equivalents at beginning of year |
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186.1 |
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166.6 |
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Cash and cash equivalents at end of year |
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$ 95.9 |
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$ 186.1 |
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