- McCormick & Company Inc (NYSE: MKC) reported FY21 third-quarter sales growth of 8% year-on-year to $ 1.549 billion, slightly beating analysts’ consensus of $ 1.540 billion. Sales increased 17% over two years.
- Consumer segment sales increased 1.2% year-on-year and sales of flavor solutions increased 21%.
- Gross profit increased 1.6% year-on-year to $ 599.6 million. Gross margin contracted 260 basis points to 38.7%, driven by higher costs and an unfavorable product mix.
- The operating margin was 17.1% and operating profit for the quarter fell 2.9% to $ 265 million. Adjusted operating margin contracted 150 basis points to 17.6%.
- McCormick had $ 312.6 million in cash and cash equivalents as of August 31, 2021. Net cash generated from operating activities for the nine months was $ 372.9 million.
- Adjusted EPS of $ 0.80 topped analyst consensus by $ 0.72.
- âWe are currently operating in a dynamic cost environment and like the rest of the industry, we are under cost pressure,â said CEO Lawrence E. Kurzius.
- Outlook: McCormick lowered the FY21 adjusted EPS outlook to $ 2.97 – $ 3.02 (before $ 3.00 – $ 3.05) from the consensus of $ 3.02.
- The company now expects FY21 Y / Y sales growth of 12% – 13% (previous view 11% – 13%).
- Price action: MKC shares are trading down 1.28% to $ 82.61 on the last check Thursday.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comment here