Mccormick & Company, Incorporated · NYSE:MKC
Mccormick & — Q1 2025 Earnings Presentation
22 slides from Mccormick &'s earnings presentation, Mar 25, 2025
Slide 1: 1st Quarter 2025 Business Update, Financial Results, and Outlook
1 Quarter 2025 st McCormick & Company, Inc. Business Update, Financial Results, and Outlook | March 25, 2025 The following slides accompany a March 25, 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, acquisitions, brand marketing support, volume and product mix, income tax e
Slide 3: Brendan Foley, Chairman, President and CEO
Brendan Foley Chairman, President and Chief Executive Officer Business Update, Financial Results, and Outlook 1st Quarter 2025 3
Slide 4: First Quarter Performance
FIRST QUARTER PERFORMANCE DEMONSTRATING THE SUCCESS OF OUR INVESTMENTS AND SUSTAINING OUR MOMENTUM Total organic sales growth of 2% driven by volume Volume growth in both segments with Consumer volume growth in all regions Profitability results in line with expectations Organic sales is a Non-GAAP f
Slide 5: First Quarter 2025 Sales Growth
FIRST QUARTER 2025 SALES GROWTH Areas of Success Areas of Pressure Consumer Flavor Solutions Strong volume growth in Spices and Seasonings in all regions CPG customers’ volume softness in Americas and EMEA Improved unit and volume share gains across core categories in key markets Slowdown in foodser
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 1st 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 1st Quarter 2025 7
Slide 8: Volume-Led Positive Organic Sales Growth
VOLUME-LED POSITIVE ORGANIC SALES GROWTH 1Q 2025 Organic Sales Growth Organic Sales Trend Total McCormick Total McCormick 2.0% Volume Price 2.2% (0.2%) Consumer Flavor Solutions Volume (1.0%) (0.7%) 0.6% 2.2% 2.2% 1.2% 3.3% Change 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Volume Price Volume Price 2.6
Slide 9: Organic Sales Results: Consumer Segment
ORGANIC SALES RESULTS: CONSUMER SEGMENT 1Q 2025 Total Consumer 1Q 2025 Consumer By Region 1.2% Total Organic Volume Price Americas 0.1% 2.9% (2.8%) Volume Price EMEA 3.6% 1.5% 2.1% 2.6% (1.4%) APAC 2.7% 2.0% 0.7% • Americas: Volume growth in core categories, offset by price gap investments actioned
Slide 10: Organic Sales Results: Flavor Solutions Segment
ORGANIC SALES RESULTS: FLAVOR SOLUTIONS SEGMENT 1Q 2025 Total Flavor Solutions 1Q 2025 Flavor Solutions By Region 3.3% Total Organic Volume Price Americas 3.6% 0.8% 2.8% Volume Price EMEA (3.9%) (1.9%) (2.0%) 1.8% 1.5% APAC 15.3% 15.7% (0.4%) • Americas: Volume growth in Flavors and QSRs partially o
Slide 11: First Quarter 2025 Results
FIRST QUARTER 2025 RESULTS v. 1Q 2024 Fav/(Unfav) Total McCormick 1Q As Constant (in millions) 2025 Reported Currency Net Sales $1,605.5 0.2% 2.0% Gross Profit 604.0 0.8% % of Net Sales 37.6% 20 bps SG&A 378.8 (4.8%) % of Net Sales 23.6% (100 bps) Adjusted Operating Income $225.2 (5.3%) (3.2%) % of
Slide 12: Segment Results
SEGMENT RESULTS v. 1Q 2024 Fav/(Unfav) Consumer 1Q As Constant (in millions) 2025 Reported Currency Net Sales $919.2 (0.2%) 1.2% Adjusted Operating Income $146.7 (16.8%) (15.9%) % of Net Sales 16.0% (310 bps) v. 1Q 2024 Fav/(Unfav) Flavor Solutions 1Q As Constant (in millions) 2025 Reported Currency
Slide 13: 1Q 2025 Adjusted Earnings Per Share
1Q 2025 ADJUSTED EARNINGS PER SHARE FX Impact of ~($0.03) Adj 1Q 2024 Operating Unconsolidated Tax 1Q 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 information and reconciliations in the app
Slide 14: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Generated Strong Cash Flow Balanced Use of Cash $116M Return to Shareholders • $121 million of cash returned to shareholders through dividends Decrease driven by higher cash used for Invest to Drive Growth working capital partially offset by lower incentive compensation •
Slide 15: 2025 Outlook
2025 OUTLOOK Reported Constant Currency 1 Net sales growth 0% to 2% 1% to 3% Adjusted operating income increase 3% to 5% 4% to 6% Cost inflation Low single-digit increase Adjusted gross profit margin Up 50 to 100 bps Brand marketing High single-digit increase Income from unconsolidated operations Mi
Slide 16: Key Takeaways
KEY TAKEAWAYS CONTINUING TO DIFFERENTIATE AND STRENGTHEN OUR LEADERSHIP Confidence in navigating challenging environment successfully Long-term trends that fuel our categories remain strong Executing on our strategic roadmap with speed, agility, and in alignment with consumer trends Results demonstr
Slide 17: 1st Quarter 2025 Business Update, Financial Results, and Outlook
1 Quarter 2025 st McCormick & Company, Inc. Business Update, Financial Results, and Outlook | March 25, 2025 The following slides accompany a January 23, 2025 earnings release conference call. This information should be read in conjunction with the press release issued on that date.
Slide 18: 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 19: 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 2/28/2025 2/29/2024 are calculated as operating income, impact of special charges, and adjusted operating Operating income $2
Slide 20: 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 21: 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 22: 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 11/30/2024 Earnings per share - diluted $2.99 to $3.04 $2.92 Impact of special charges 0.04 0.03 Adj