10-Q - MCCORMICK & CO INC (0000063754) (Filer)

Tue, Mar 25, 8:51 PM (33 days ago)

**McCormick & Company, Incorporated (MKC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,605.5 million, a 0.2% increase from Q1 2024. - **Profit Margins:** Gross profit margin improved by 20 basis points to 37.6%. - **Operating Income:** $225.2 million, a 3.6% decrease from Q1 2024. - **Net Income:** $162.3 million, a slight decrease from $166.0 million in Q1 2024. - **Earnings per Share (EPS):** $0.60, down from $0.62 in Q1 2024. - **Cash Flow:** Operating cash flow decreased by $22.9 million to $115.5 million. **Segment Performance:** - **Consumer Segment:** Sales decreased by 0.2% to $919.2 million, with a 16.8% drop in operating income. - **Flavor Solutions Segment:** Sales increased by 0.8% to $686.3 million, with a 27.9% increase in operating income. **Trends and Uncertainties:** - **Volume and Product Mix:** Positive impact on net sales by 2.2%. - **Pricing:** Unfavorable impact on net sales by 0.2%. - **Currency Fluctuations:** Negative impact on net sales by 1.8%. - **Special Charges:** $0 in Q1 2025, compared to $4.2 million in Q1 2024. - **Future Outlook:** Projected net sales growth of 0-2%, with a 1% unfavorable impact from foreign currency rates. Gross profit margin expected to improve by 50-100 basis points. **Future Operations Impact:** - **Cost Savings:** Expected from Comprehensive Continuous Improvement (CCI) program. - **Investments:** Increased brand marketing investments by high-single digits. - **Special Charges:** Approximately $15 million expected in 2025. **Market Risks:** - **Foreign Exchange Risk:** Managed through derivative financial instruments. - **Interest Rate Risk:** Managed through interest rate swaps. - **Commodity Risk:** Managed through strategic raw material purchases and customer price adjustments. **Liquidity and Financial Condition:** - **Cash and Cash Equivalents:** $102.8 million at the end of Q1 2025. - **Debt:** Total debt of $3,850.8 million, with a fair value of $3,678.4 million. - **Dividends:** Increased to $120.7 million in Q1 2025. **Forward-Looking Information:** - **Earnings Guidance:** Diluted EPS projected to range from $2.99 to $3.04 for 2025. - **Uncertainties:** Trade policies, tariffs, and global economic conditions may impact financial performance.