McCormick topped Wall Street projections for third-quarter profit and sales on Thursday, supported by higher prices for seasonings and sauces that offset the effects of increasing raw material and freight expenses.
For the quarter ended August 31, McCormick’s prices were up 2.2% from a year ago, while organic volumes dipped 0.3%. Its volumes fell 0.5% in the previous quarter.
The company reported third-quarter sales of $2.02 billion, compared to estimates of $1.98 billion.
The earnings beat comes as the company battles a dynamic matket, with shares dropping nearly 32% so far this year.
Brendan M. Foley, Chairman, President, and CEO, stated, “Third quarter results demonstrate the resilience and differentiated performance of our flavor-focused business model in a dynamic operating environment. We delivered strong sales growth, including organic growth across our global flavor portfolio, while expanding our profit margins. Disciplined productivity initiatives helped offset rising input and freight costs, supporting margin expansion and enabling continued investment in our brands to drive long-term profitable growth. Overall, performance reflected solid base business contribution and accretion from the McCormick de Mexico acquisition, where we have substantially completed its integration.”
“Looking ahead, our enhanced margin profile and operational discipline position us to continue investing in our brands, capabilities, and innovation to support organic sales growth and drive long-term shareholder value creation. Our advantaged categories combined with our strong year-to-date performance, including solid organic growth, margin expansion, and robust cash flow, give us confidence in our ability to deliver on our 2026 outlook.”
“We remain confident in the strategic benefits of the proposed combination with Unilever Foods and have made substantial progress on integration planning. We have established the future leadership team and operating model, mobilized cross-functional resources, and developed detailed plans to support business continuity and planned synergy delivery post-close.”
“Finally, I want to recognize the engagement of our employees. Their focus, collaboration, and commitment to serving consumers and customers continue to support our differentiated performance. I also want to acknowledge the teams executing our standalone priorities, as well as those serving on the Integration Team, who are advancing the planning needed to prepare for the proposed Unilever Foods combination. I am grateful for their contributions, which continue to strengthen and sustain our Power of People culture.”
McCormick shares rose 6% in premarket trading following the announcement.
By CEO NA Editorial Staff
