Mccormick & Company, Incorporated · NYSE:MKC
Mccormick & — Q2 2025 Earnings Presentation
23 slides from Mccormick &'s earnings presentation, Jun 26, 2025
Slide 1: 2nd Quarter 2025 Business Update, Financial Results, and Outlook
2 Quarter 2025 nd McCormick & Company, Inc. Business Update, Financial Results, and Outlook | June 26, 2025 The following slides accompany a June 26, 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 2nd Quarter 2025 3
Slide 4: Second Quarter Performance
SECOND QUARTER PERFORMANCE EXECUTING ON PROVEN STRATEGIES AND DELIVERING PROFITABLE VOLUME-LED GROWTH Total organic sales growth of 2% driven by volume Consumer volume growth in all regions demonstrating continued momentum Flavor Solutions softer packaged food volumes moderated by emerging and healt
Slide 5: Second Quarter 2025 Sales Growth
SECOND QUARTER 2025 SALES GROWTH Areas of Success Areas of Pressure Consumer Flavor Solutions Strong volume growth in spices and seasonings across all regions Softness in CPG customers’ volumes in Americas and EMEA Positive recipe mix unit, volume, and dollar growth in Americas Slowdown in foodservi
Slide 6: Executing on Growth Plans
EXECUTING ON GROWTH PLANS Category Management Brand Marketing Innovation Proprietary Technologies Differentiated Customer Engagement Business Update, Financial Results, and Outlook 2nd 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 2nd Quarter 2025 7
Slide 8: Volume-Led Positive Organic Sales Growth
VOLUME-LED POSITIVE ORGANIC SALES GROWTH 2Q 2025 Organic Sales Growth Organic Sales Trend Total McCormick Total McCormick 1.6% Volume Price 1.3% 0.3% Consumer Flavor Solutions Volume (0.7%) 0.6% 2.2% 2.2% 1.3% 3.0% 0.0% Change 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 Volume Price Volume Price 3.3% (0
Slide 9: Organic Sales Results: Consumer Segment
ORGANIC SALES RESULTS: CONSUMER SEGMENT 2Q 2025 Total Consumer 2Q 2025 Consumer By Region 3.0% Total Organic Volume Price Americas 2.8% 3.5% (0.7%) Volume Price EMEA 3.3% 2.2% 1.1% 3.3% (0.3%) APAC 3.7% 3.6% 0.1% • Americas: Volume growth in core categories, partially offset by targeted incremental
Slide 10: Organic Sales Results: Flavor Solutions Segment
ORGANIC SALES RESULTS: FLAVOR SOLUTIONS SEGMENT 2Q 2025 Total Flavor Solutions 2Q 2025 Flavor Solutions By Region 0.0% Total Organic Volume Price Americas 1.4% (1.0%) 2.4% Volume Price EMEA (7.0%) (4.7%) (2.3%) (1.0%) 1.0% APAC 3.4% 5.7% (2.3%) • Americas: Soft CPG customer volume offset by fast-gro
Slide 11: Second Quarter 2025 Results
SECOND QUARTER 2025 RESULTS v. 2Q 2024 Fav/(Unfav) Total McCormick 2Q As Constant (in millions) 2025 Reported Currency Net Sales $1,659.5 1.0% 1.6% Gross Profit 622.8 0.5% % of Net Sales 37.5% (20 bps) SG&A 364.2 5.1% % of Net Sales 21.9% 140 bps Adjusted Operating Income $258.6 9.7% 11.0% % of Net
Slide 12: Segment Results
SEGMENT RESULTS v. 2Q 2024 Fav/(Unfav) Consumer 2Q As Constant (in millions) 2025 Reported Currency Net Sales $930.6 2.9% 3.0% Adjusted Operating Income $163.6 9.6% 9.8% % of Net Sales 17.6% 110 bps v. 2Q 2024 Fav/(Unfav) Flavor Solutions 2Q As Constant (in millions) 2025 Reported Currency Net Sales
Slide 13: 2Q 2025 Adjusted Earnings Per Share
2Q 2025 ADJUSTED EARNINGS PER SHARE 2Q 2025 v. PY Fav/(Unfav) $0.01 $0.07 $0.69 $0.69 ($0.08) Adj 2Q 2024 Operating Unconsolidated Tax 2Q 2025 Adj. EPS Income Income Rate Adj. EPS Financial measures which we refer to as “adjusted” are Non-GAAP financial measures. See the accompanying Non-GAAP inform
Slide 14: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Cash Flow From Operations Balanced Use of Cash $161M Return to Shareholders • $242 million of cash returned to shareholders through dividends Decrease driven by higher cash used Invest to Drive Growth due to timing of working capital • Capital expenditures of $85 million
Slide 15: Mitigating 2025 Tariff Cost Exposure
MITIGATING 2025 TARIFF COST EXPOSURE Mitigation Actions Fully Offset 2025 Exposure ~$90 Million ~$50 Million Sourcing Cost savings Surgical pricing Total Gross Total Gross Annualized Exposure 2025 Exposure Business Update, Financial Results, and Outlook 2nd Quarter 2025 15
Slide 16: 2025 Outlook
2025 OUTLOOK Prior Guide Current Guide Current Guide Reported Reported Constant Currency 1 Net sales growth 0% to 2% 0% to 2% 1% to 3% Adjusted operating income increase 3% to 5% 3% to 5% 4% to 6% LSD increase Cost inflation LSD increase excluding tariffs Adjusted gross profit margin Up 50 to 100 bp
Slide 17: Key Takeaways
KEY TAKEAWAYS EXECUTION OF GROWTH PLANS DIFFERENTIATE AND STRENGTHEN OUR LEADERSHIP Confidence in executing proven strategies with speed and agility Long-term trends that fuel our attractive categories are enduring Results demonstrate the effectiveness of our investments that drive differentiated to
Slide 18: 2nd Quarter 2025 Business Update, Financial Results, and Outlook
2 Quarter 2025 nd McCormick & Company, Inc. Business Update, Financial Results, and Outlook | June 26, 2025 The following slides accompany a June 26, 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 operating income, adjusted operating income margin, adjusted income tax expense, adjusted income tax rate, adjusted net income, and adjusted diluted earnings per share. These represent non-GAAP
Slide 20: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES (in millions except per share data) Three Months Ended 1. Operating income margin, impact of special charges, and adjusted operating income margin 5/31/2025 5/31/2024 are calculated as operating income, impact of special charges, and adjusted operating Operating income $
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 $2.98 to $3.03 $ 2.92 Impact of special charges 0.05 0.03 Adju