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Key Takeaways
- McCormick reported second-quarter results that beat analysts’ expectations, sending its stock higher Thursday.
- The Europe, Middle East and Africa segment led the way in McCormick’s consumer sales.
- The company reaffirmed its fiscal 2024 guidance.
Shares of McCormick & Company (MKC) climbed more than 4% in intraday trading Thursday after the spice maker’s second-quarter results topped analysts’ expectations.
McCormick reported diluted earnings per share (EPS) of 68 cents, up from the year-ago period and above consensus expectations of 59 cents. Net sales fell 1% to $1.64 billion, slightly ahead of expectations.
Looking ahead, the Maryland-based company reaffirmed its fiscal 2024 EPS projection of $2.76 to $2.81, and sales growth of 0% to 2%.
McCormick’s EMEA Segment Leads Sales Growth
The French’s mustard and Cholula hot sauce maker reported a 5% rise in consumer sales in the Europe, Middle East and Africa (EMEA) division, with a 2% drop in the Americas. The EMEA growth was fueled by a 4% increase in consumer volume in the quarter. Overall, consumer sales slowed 1% year-over-year.
“The investments we made in our consumer segment drove substantial sequential volume improvement in the second quarter, leading to volume growth, and we expect continued momentum for the second half of the year,” CEO Brendan Foley said in a statement.
McCormick shares were up 4.7% at $70.92 as of 2 p.m. ET Thursday following the company’s earnings release. The stock has gained 3.7% since the start of the year.