McCormick & Co (MKC) Beats Expectations for 2021 Q2

McCormick & Co (NYSE:MKC) traces its roots back to 1889 when founder Willoughby M. McCormick started producing root beer, flavoring extracts, and juices in his home. He initially sold his products door-to-door under different labels such as Bee Brand and Silver Medal. Today, McCormick is a leading producer of spices and flavoring products, with operations in 160 countries.

The spices and flavorings company recently announced better-than-expected financial results for the second quarter. McCormick reported earnings of 68 cents per share for the three months ended May 31, compared to 73 cents per share in the year-ago quarter. The company earned 69 cents per share on an adjusted basis, ahead of the consensus forecast of 62 cents per share.

Revenue rose 11 percent on a year-over-year basis to $1.56 billion, beating analysts’ average estimate of $1.47 billion. Revenue from the consumer segment slipped 2 percent to $945.2 million, while revenue from the flavor solutions segment jumped 39 percent to $611.5 million.

Commenting on the quarter, CEO Lawrence Kurzius said, “The combination of McCormick’s broad and advantaged portfolio, the acceleration of consumer trends which our strategies capitalize on and our two recent acquisitions, as well as the effective execution of our strategies and engagement of our employees have positioned us well to drive differentiated growth, even when lapping challenging year-over-year comparisons. We grew sales 11% in the second quarter and, notably, on a two-year basis, sales and adjusted operating income grew 20%, which reflects our robust growth momentum.”

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McCormick also raised its financial outlook for fiscal 2021. It expects adjusted earnings in the range of $3 per share to $3.05 per share and revenue growth between 11 to 13 percent for the full year.