Mccormick & Company, Incorporated · NYSE:MKC
Mccormick & — Q3 2025 Earnings Presentation
23 slides from Mccormick &'s earnings presentation, Oct 7, 2025
Slide 1: 3rd Quarter 2025 Business Update, Financial Results, and Outlook
3 Quarter 2025 rd McCormick & Company, Inc. Business Update, Financial Results, and Outlook | October 7, 2025 The following slides accompany an October 7, 2025 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, acquisitions, brand marketi
Slide 3: Brendan Foley, Chairman, President and CEO
Brendan Foley Chairman, President and Chief Executive Officer Business Update, Financial Results, and Outlook 3rd Quarter 2025 3
Slide 4: Third Quarter Performance
THIRD QUARTER PERFORMANCE DIFFERENTIATED VOLUME GROWTH AND DISCIPLINED EXECUTION ON LEVERS WITHIN OUR CONTROL Total organic sales growth of 2%, driven by continued momentum in Consumer volumes Strong underlying volume performance in Flavor Solutions despite industry softness Profitability impacted b
Slide 5: Third Quarter 2025 Sales Growth
THIRD QUARTER 2025 SALES GROWTH Areas of Success Areas of Pressure Consumer Consumer Strong volume growth in Spices and Seasonings across all regions Pressure on Americas’ Recipe Mixes in Mexican Flavor Continued share gains in Mustard in Americas and EMEA China Foodservice near-term softness; maint
Slide 6: Executing on Growth Plans
EXECUTING ON GROWTH PLANS Category Management Brand Marketing Innovation Proprietary Technologies Differentiated Customer Engagement Beverage Flavor 201 ® Business Update, Financial Results, and Outlook 3rd Quarter 2025 6
Slide 7: Marcos Gabriel, EVP and Chief Financial Officer
Marcos Gabriel Executive Vice President and Chief Financial Officer Business Update, Financial Results, and Outlook 3rd Quarter 2025 7
Slide 8: Volume-Led Positive Organic Sales Growth
VOLUME-LED POSITIVE ORGANIC SALES GROWTH 3Q 2025 Organic Sales Growth Organic Sales Trend Total McCormick Total McCormick 1.8% Volume Price Total Organic 0.4% 1.8% 2.0% 1.6% 1.8% 1.2% 0.6% Consumer Flavor Solutions 2.6% 0.6% Volume 0.6% 2.2% 2.2% 1.3% 1.2% Volume Price Volume Price 3Q 2024 4Q 2024 1
Slide 9: Organic Sales Results: Consumer Segment
ORGANIC SALES RESULTS: CONSUMER SEGMENT 3Q 2025 Total Consumer 3Q 2025 Consumer By Region 2.6% Total Organic Volume Price Americas 2.7% 2.7% 0.0% Volume Price EMEA 4.4% 1.6% 2.8% 2.2% 0.4% APAC (0.8%) (0.6%) (0.2%) • Americas: Volume growth in core categories driven by investments in brand marketing
Slide 10: Organic Sales Results: Flavor Solutions Segment
ORGANIC SALES RESULTS: FLAVOR SOLUTIONS SEGMENT 3Q 2025 Total Flavor Solutions 3Q 2025 Flavor Solutions By Region 0.6% Total Organic Volume Price Americas 0.9% (1.3%) 2.2% Volume Price EMEA (3.1%) (1.0%) (2.1%) (0.3%) 0.9% APAC 6.3% 9.0% (2.7%) • Americas: Volume decline driven by lapping prior year
Slide 11: Third Quarter 2025 Results
THIRD QUARTER 2025 RESULTS v. 3Q 2024 Fav/(Unfav) Total McCormick 3Q As Constant (in millions) 2025 Reported Currency Net Sales $1,724.9 2.7% 1.8% Adjusted Gross Profit 646.1 (0.6%) % of Net Sales 37.5% (120 bps) SG&A 352.5 2.5% % of Net Sales 20.5% 100 bps Adjusted Operating Income $293.6 1.8% 1.6%
Slide 12: Segment Results
SEGMENT RESULTS v. 3Q 2024 Fav/(Unfav) Consumer 3Q As Constant (in millions) 2025 Reported Currency Net Sales $973.2 3.8% 2.6% Adjusted Operating Income $193.8 3.7% 3.2% % of Net Sales 19.9% 0 bps v. 3Q 2024 Fav/(Unfav) Flavor Solutions 3Q As Constant (in millions) 2025 Reported Currency Net Sales $
Slide 13: 3Q 2025 Adjusted Earnings Per Share
3Q 2025 ADJUSTED EARNINGS PER SHARE 3Q 2025 v. PY Fav/(Unfav) $0.02 $0.85 $0.83 Adj 3Q 2024 Operating 3Q 2025 Adj. EPS Income Adj. EPS Financial measures which we refer to as “adjusted” are Non-GAAP financial measures. See the accompanying Non-GAAP information and reconciliations in the appendix. Bu
Slide 14: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Cash Flow From Operations Balanced Use of Cash Year-To-Date $420M Return to Shareholders • $362 million of cash returned to shareholders through dividends Decrease versus prior year driven by Invest to Drive Growth higher cash used due to timing of working capital • Capit
Slide 15: Mitigating Most of 2025 Tariff Cost Exposure
MITIGATING MOST OF 2025 TARIFF COST EXPOSURE Latest Exposure Estimates Mitigation Initiatives ~$140 Million Sourcing Productivity initiatives ~$70 Cost savings Million Surgical pricing Total Gross Total Gross Annualized Exposure 2025 Exposure Business Update, Financial Results, and Outlook 2nd Quart
Slide 16: 2025 Outlook
2025 OUTLOOK Current Guide – Oct 2025 Prior Guide – Jun 2025 Reported Constant Currency Reported Constant Currency 1 1 Net sales growth 0% to 2% 1% to 3% 0% to 2% 1% to 3% Adjusted operating income growth 2% to 4% 3% to 5% 3% to 5% 4% to 6% LSD-MSD increase LSD increase Cost inflation excluding tari
Slide 17: Key Takeaways
KEY TAKEAWAYS GROWTH PLANS CONTINUE TO DIFFERENTIATE AND STRENGTHEN OUR LEADERSHIP Strategies executed with speed and agility and in alignment with consumer trends Long-term trends that fuel our attractive categories are enduring Results demonstrate effective investments that drive differentiated to
Slide 18: 3rd Quarter 2025 Business Update, Financial Results, and Outlook
3 Quarter 2025 rd McCormick & Company, Inc. Business Update, Financial Results, and Outlook | October 7, 2025 The following slides accompany an October 7, 2025 earnings release conference call. This information should be read in conjunction with the press release issued on that date.
Slide 19: 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 20: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES (in millions except per share data) Three Months Ended 8/31/2025 8/31/2024 Gross profit $ 645.1 $ 649.9 1. Gross profit margin, impact of special charges, and adjusted gross profit margin are Impact of special charges included in cost of goods sold 1.0 0.0 calculated as g
Slide 21: 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 22: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES To present the percentage change in projected 2025 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 23: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The following provides a reconciliation of our estimated earnings per share to adjusted earnings per share for 2025 and actual results for 2024: Year Ended 2025 Projection 11/30/24 Earnings per share - diluted $2.95 to $3.00 $ 2.92 Impact of special charges 0.05 0.03 Adju