Mccormick & Company, Incorporated · NYSE:MKC
Mccormick & — Q2 2026 Earnings Presentation
24 slides from Mccormick &'s earnings presentation, Jun 25, 2026
Slide 1: Business Update, Financial Results, and Outlook
Business Update, Financial Results, and Outlook 2Q 2026 I June 25, 2026 McCormick & Company, Inc. The following slides accompany a June 25, 2026 earnings release conference call. This information should be read in conjunction with the press release issued on that date.
Slide 2: Forward-looking Information
Forward-looking Information Certain information contained in this presentation, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges, including transaction and integration expenses, mergers, acquisitions, bran
Slide 3: Brendan Foley, Chairman, President and CEO
Brendan Foley Chairman, President and Chief Executive Officer
Slide 4: Second Quarter Performance
Second Quarter Performance Demonstrates Underlying Strength and Resilience of Our Business Continued benefit from McCormick de Mexico performance Organic sales growth of 2% driven by accelerated momentum in Flavor Solutions Successfully navigated elevated inflation and incremental costs Enhanced mar
Slide 5: Second Quarter 2026 Sales Growth
Second Quarter 2026 Sales Growth Areas of Success Areas of Pressure Consumer Consumer Delivered strong performance in EMEA and APAC Softening consumption trends in U.S. Spices and Seasonings Gained share in Spices and Seasonings, Recipe Mixes, Mustard, and Continued pressure on Americas’ Recipe Mixe
Slide 6: Executing on Growth Plans
Executing on Growth Plans Category Management Brand Marketing Innovation Proprietary Technologies Differentiated Customer Engagement 6 Business Update, Financial Results, and Outlook | 2Q 2026
Slide 7: Strong Integration Progress on the Unilever Foods Combination
Strong Integration Progress on the Unilever Foods Combination Highlights Key Activities Upcoming & Milestones Milestones Dedicated Integration Management Office Timeline/Milestones Integration planning, financial carve out and Mobilized 200+ team members across both company’s integration streams reg
Slide 8: Marcos Gabriel, Executive Vice President and CFO
Marcos Gabriel Executive Vice President and Chief Financial Officer
Slide 9: Strong Constant Currency Sales Growth
Strong Constant Currency Sales Growth 2Q 2026 Total McCormick Total Constant Volume Price M&A Organic Currency (0.5%) 2.2% 1.7% 12.3% 14.0% Consumer Flavor Solutions 20.4% 5.9% Volume Price M&A Volume Price M&A (1.9%) 2.7% 19.6% 1.4% 1.5% 3.0% Organic sales is a Non-GAAP financial measure. See the a
Slide 10: Sales Results: Consumer Segment
Sales Results: Consumer Segment Volume Price Total Organic M&A Constant Currency (1.9%) 2.7% 0.8% 19.6% 20.4% 2Q 2026 Consumer by Region Total Constant Volume Price M&A Organic Currency Americas (3.6%) 3.4% (0.2%) 27.9% 27.7% Volume impacted by shifting demand patterns and increased price gaps EMEA
Slide 11: Sales Results: Flavor Solutions Segment
Sales Results: Flavor Solutions Segment Volume Price Total Organic M&A Constant Currency 1.4% 1.5% 2.9% 3.0% 5.9% 2Q 2026 Flavor Solutions by Region Total Constant Volume Price M&A Organic Currency Americas 2.1% 1.8% 3.9% 4.2% 8.1% Volume driven by strong performance in Flavors and Branded Foodservi
Slide 12: Second Quarter 2026 Results
Second Quarter 2026 Results v. 2Q 2025 Fav/(Unfav) Total McCormick 2Q As Constant (in millions) 2026 Reported Currency Net Sales $1,936.6 16.7% 14.0% Adjusted Gross Profit 778.8 25.0% % of Net Sales 40.2% 270 bps SG&A 441.8 (21.3%) % of Net Sales 22.8% (90 bps) Adjusted Operating Income $336.4 30.1%
Slide 13: Segment Results
Segment Results v. 2Q 2025 Fav/(Unfav) Consumer 2Q As Constant (in millions) 2026 Reported Currency Net Sales $1,142.7 22.8% 20.4% Adjusted Operating Income $216.9 32.6% 30.7% % of Net Sales 19.0% 140 bps v. 2Q 2025 Fav/(Unfav) Flavor Solutions 2Q As Constant (in millions) 2026 Reported Currency Net
Slide 14: Second Quarter 2026 Adjusted Earnings Per Share
Second Quarter 2026 Adjusted Earnings Per Share 2Q 2026 v. PY Fav/(Unfav) $0.22 $0.02 $0.80 ($0.10) ($0.03) $0.69 2Q 2025 Adj Operating Income Tax Non-Controlling Other 2Q 2026 Adj. EPS Including $0.07 tariff Rate Minority Interest Adj. EPS refund Financial measures which we refer to as “adjusted” a
Slide 15: First Half Balance Sheet and Cash Flow
First Half Balance Sheet and Cash Flow Cash Flow Year-To-Date Balanced Use of Cash From Operations • $258M of cash returned to shareholders through dividends • Capital expenditures of $75M year-to-date • Reduced leverage ratio as planned $431M • Positioned to reduce leverage ratio ahead of Unilever
Slide 16: 2026 Outlook
2026 Outlook Reported Constant Currency Net sales growth 13% to 17% 12% to 16% Contribution from acquisition of McCormick de Mexico 11% to 13% 11% to 13% Organic sales growth1 1% to 3% Adjusted operating income growth 16% to 20% 15% to 19% Cost inflation MSD increase 2 Adjusted gross profit margin 1
Slide 17: 2026 Constant Currency Outlook
2026 Constant Currency Outlook Strong Base Business & Digital/ ERP Tax 2026 Acquisition Refined Plan Variance Guidance Growth Net sales 12% to 16% 12% to 16% Adj. operating income 18% to 22% -3% 15% to 19% Adj. earnings per share 8% to 11% -4% -3% 1% to 4% Tariffs and Inflation Offset by Mitigations
Slide 18: Key Takeaways
Key Takeaways Fundamentals Remain Strong • Underpinned by resilient long-term category trends and flavor-focused portfolio Strong Organic Growth, Margin Expansion and Increased Profitability • Driven by disciplined execution, productivity, acquisition performance, and cost management • Advancing act
Slide 19: Non-GAAP Reconciliations
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following tables include financial measures of organic net sales, adjusted gross profit, adjusted gross profit margin, adjusted operating income, adjusted operating income margin, adjusted income tax expense, adjusted income tax rate, adjusted net income, and adjusted
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures 1. Gross profit margin, impact of special charges, and adjusted gross profit margin are calculated as gross profit, impact of special charges, and adjusted gross profit as a percentage of net sales for each period presented. The impact of special charges included in cost
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Because we are a multi-national company, we are subject to variability of our reported U.S. dollar results due to changes in foreign currency exchange rates. Those changes can be volatile. The exclusion of the effects of foreign currency exchange, or what we refer to as a
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures To present the percentage change in projected 2026 net sales, adjusted operating income, and adjusted earnings per share (diluted) on a constant currency basis, the projected local currency net sales, adjusted operating income, and adjusted net income for entities reporti
Slide 24: Forward-looking Information
Forward-looking Information Certain information contained in this presentation, including statements concerning expected performance such as those relating to the anticipated benefits and timing of, and our plans, strategies and objectives relating to, the pending transaction with Unilever Foods, in