Mccormick & Company, Incorporated · NYSE:MKC
Mccormick & — Q1 2026 Earnings Presentation
23 slides from Mccormick &'s earnings presentation, Mar 31, 2026
Slide 1: Business Update, Financial Results, and Outlook
Business Update, Financial Results, and Outlook 1Q 2026 I March 31, 2026 McCormick & Company, Inc. The following slides accompany a March 31, 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, acquisitions, brand marketi
Slide 3: Brendan Foley, Chairman, President and CEO
Brendan Foley Chairman, President and Chief Executive Officer
Slide 4: First Quarter Performance
First Quarter Performance Well Positioned to Drive Sustained Profitable Growth Top and bottom line benefitted from McCormick de Mexico performance Organic sales growth of 1% was driven by pricing with volumes in line with plan Profitability reflects acquisition accretion and inflation mitigation str
Slide 5: First Quarter 2026 Sales Growth
First Quarter 2026 Sales Growth Areas of Success Areas of Pressure Consumer Consumer U.S. elasticity and share performance in line with expectations Pressure on Americas’ Recipe Mixes in Mexican flavors Strong U.S. Hot Sauce performance for 6th consecutive quarter Higher competitive promotional acti
Slide 6: Evolving External & Consumer Environment
Evolving External & Consumer Environment Geopolitical & Operating Context Consumer Dynamics Evolving environment contributing to cost volatility and Financial strain is broad-based and persistent, yet pressuring consumer confidence consumers remain resilient Diversified sourcing and regional footpri
Slide 7: Executing on Growth Plans
Executing on Growth Plans Category Management Brand Marketing Innovation Proprietary Technologies Differentiated Customer Engagement 7 Business Update, Financial Results, and Outlook | 1Q 2026
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 1Q 2026 Total McCormick 13.6% Volume Price M&A (0.7%) 1.9% 12.4% Consumer Flavor Solutions 21.6% 2.9% Volume Price M&A Volume Price M&A (0.4%) 2.2% 19.8% (1.0%) 1.5% 2.4% Organic sales is a Non-GAAP financial measure. See the accompanying Non-GAAP information an
Slide 10: Sales Results: Consumer Segment
Sales Results: Consumer Segment Volume Price Total Organic M&A Constant Currency (0.4%) 2.2% 1.8% 19.8% 21.6% 1Q 2026 Consumer by Region Total Constant Volume Price M&A Organic Currency Americas (1.6%) 2.8% 1.2% 28.9% 30.1% Volume in line with expectations; pricing reflects inflation-related actions
Slide 11: Sales Results: Flavor Solutions Segment
Sales Results: Flavor Solutions Segment Volume Price Total Organic M&A Constant Currency (1.0%) 1.5% 0.5% 2.4% 2.9% 1Q 2026 Flavor Solutions by Region Total Constant Volume Price M&A Organic Currency Volumes impacted by large CPG and QSR customers’ volume softness Americas (1.7%) 2.5% 0.8% 3.4% 4.2%
Slide 12: First Quarter 2026 Results
First Quarter 2026 Results v. 1Q 2025 Fav/(Unfav) Total McCormick 1Q As Constant (in millions) 2026 Reported Currency Net Sales $1,873.9 16.7% 1.2% Adjusted Gross Profit 723.9 19.9% % of Net Sales 38.6% 100 bps SG&A 456.3 (20.5%) % of Net Sales 24.3% (70 bps) Adjusted Operating Income $267.6 18.8% 1
Slide 13: Segment Results
Segment Results v. 1Q 2025 Fav/(Unfav) Consumer 1Q As Constant (in millions) 2026 Reported Currency Net Sales $1,145.0 24.5% 21.6% Adjusted Operating Income $179.6 22.4% 20.5% % of Net Sales 15.7% (30 bps) v. 1Q 2025 Fav/(Unfav) Flavor Solutions 1Q As Constant (in millions) 2026 Reported Currency Ne
Slide 14: First Quarter 2026 Adjusted Earnings Per Share
First Quarter 2026 Adjusted Earnings Per Share 1Q 2026 v. PY Fav/(Unfav) $0.12 $0.66 ($0.03) ($0.02) $0.60 ($0.01) Adj Operating Tax Non-Controlling 1Q 2025 1Q 2026 Income Rate Minority Interest Other Adj. EPS Adj. EPS Financial measures which we refer to as “adjusted” are Non-GAAP financial measure
Slide 15: First Quarter Balance Sheet and Cash Flow
First Quarter Balance Sheet and Cash Flow Cash Flow Balanced Use of Cash Year-To-Date From Operations Return to Shareholders $51M • $129 million of cash returned to shareholders through dividends Invest to Drive Growth Decrease versus prior year driven by • Capital expenditures of $33 million year-t
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 Adjusted gross profit margin Exp
Slide 17: 2026 Constant Currency Outlook
2026 Constant Currency Outlook Strong Base Incremental Digital/ ERP Business & Tariff Tax 2026 Tariff Refined Acquisition Mitigations Variance Guidance Growth Impact Plan Net sales 12% to 16% 12% to 16% Adjusted operating income 18% to 22% -5% +5% -3% 15% to 19% Adjusted earnings per share 8% to 11%
Slide 18: Key Takeaways
Key Takeaways Growth Plans Continue To Differentiate And Strengthen Our Leadership Long-term trends driving our categories remain strong Operating from a position of strength to navigate ongoing macro volatility Outlook reflects continued top-line momentum, margin recovery and profitability Performa
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 (in millions except per share data) Three Months Ended 2/28/2026 2/28/2025 Gross profit $ 708.9 $ 604.0 1. Gross profit margin, impact of special charges, and adjusted gross profit margin Impact of special charges included in cost of goods sold 15.0 — are calculated as gr
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