- McCormick & Co Inc (NYSE:MKC) reported first-quarter FY22 sales growth of 2.7% year-on-year, to $1.52 billion, beating the consensus of $1.47 billion.
- Flavor solutions segment sales increased 12%, driven by base business, new products, and acquisition growth.
- Consumer segment sales declined 2%, with minimal impact from currency, and included pricing actions taken to offset cost inflation.
- Gross profit was $560.4 million, with the profit margin declining 220 basis points Y/Y to 36.8%.
- The operating margin contracted 235 basis points Y/Y to 13.6%.
- Q1 net income of $154.9 million declined 4.3% Y/Y. Adjusted EPS of $0.63 beat the consensus of $0.62.
- The company generated an operating cash flow of $18 million in the quarter and ended Q1 with $338.4 million in cash and equivalents.
- Outlook: McCormick reiterated its FY22 sales, operating income, and EPS outlook.
- McCormick sees FY22 sales growth of 3% - 5% Y/Y. It expects FY22 Adjusted EPS of $3.17 - $3.22, against the consensus of $3.19.
- Price Action: MKC shares closed lower by 0.31% at $97.62 on Monday.
