Mccormick & Company, Incorporated · NYSE:MKC
Mccormick & — Q4 2024 Earnings Presentation
24 slides from Mccormick &'s earnings presentation, Jan 23, 2025
Slide 1: 4th Quarter 2024 Business Update, Financial Results, and Outlook
4 Quarter 2024 th McCormick & Company, Inc. Business Update, Financial Results, and Outlook | January 23, 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 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 4th Quarter 2024 3
Slide 4: Fourth Quarter Performance
FOURTH QUARTER PERFORMANCE ADVANCING AND REINFORCING OUR LEADERSHIP AND DIFFERENTIATION Total organic sales growth of 2% driven by volume Sequentially, total volume improved for the fourth consecutive quarter Consumer Segment volume growth of 4% Organic sales is a Non-GAAP financial measure. See the
Slide 5: Fourth Quarter 2024 Sales Growth
FOURTH QUARTER 2024 SALES GROWTH Areas of Success Areas of Pressure Consumer Consumer Consumption growth in key markets across Spices & Seasonings, Recipe Environment in China remains challenged Mixes, Mustard, and Hot Sauce Volume share gains in Spices & Seasonings and Recipe Mixes Flavor Solutions
Slide 6: Strong Fiscal 2024 Results, Continued Momentum in 2025
STRONG FISCAL 2024 RESULTS Successfully delivered on 2024 plans Volume growth driving sales close to high-end of guidance Strategic reinvestment in key areas while driving margin expansion Significant progress in advancing Flavor Solutions operating margin Growth reinforces confidence in 2028 target
Slide 7: Executing on Growth Plans
EXECUTING ON GROWTH PLANS Category Management Brand Marketing Innovation Proprietary Technologies Differentiated Customer Engagement Taste Modification 201 Business Update, Financial Results, and Outlook 4th Quarter 2024 7
Slide 8: Marcos Gabriel, EVP and Chief Financial Officer
Marcos Gabriel Executive Vice President and Chief Financial Officer Business Update, Financial Results, and Outlook 4th Quarter 2024 8
Slide 9: Volume-Led Positive Organic Sales Growth
VOLUME-LED POSITIVE ORGANIC SALES GROWTH 4Q 2024 Organic Sales Growth Organic Sales Trend Total McCormick Total McCormick 1.8% Volume Price 2.2% (0.4%) Consumer Flavor Solutions Volume (3.1%) (1.0%) (0.7%) 0.6% 2.2% 2.4% 0.8% Change 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Volume Price Volume Price 3
Slide 10: Organic Sales Results: Consumer Segment
ORGANIC SALES RESULTS: CONSUMER SEGMENT 4Q 2024 Total Consumer 4Q 2024 Consumer By Region 2.4% Total Organic Volume Price Americas 3.7% 5.1% (1.4%) Volume Price EMEA 2.9% 4.9% (2.0%) 3.7% (1.3%) APAC (10.3%) (11.2%) 0.9% • Americas: Volume growth in core categories driven by investments in brand mar
Slide 11: Organic Sales Results: Flavor Solutions Segment
ORGANIC SALES RESULTS: FLAVOR SOLUTIONS SEGMENT 4Q 2024 Total Flavor Solutions 4Q 2024 Flavor Solutions By Region 0.8% Total Organic Volume Price Americas 1.4% (0.8%) 2.2% Volume Price EMEA (4.0%) (1.6%) (2.4%) (0.2%) 1.0% APAC 6.5% 7.4% (0.9%) • Americas: Volume decline driven by soft CPG customers
Slide 12: Fourth Quarter and Fiscal Year Results
FOURTH QUARTER AND FISCAL YEAR RESULTS v. 4Q 2023 Fav/(Unfav) v. FY 2023 Fav/(Unfav) Total McCormick 4Q As Constant FY As Constant (in millions) 2024 Reported Currency 2024 Reported Currency Net Sales $1,798.0 2.6% 1.8% $6,723.7 0.9% 0.6% Gross Profit 722.2 3.0% 2,591.0 3.5% % of Net Sales 40.2% 20
Slide 13: Segment Results
SEGMENT RESULTS Fav/(Unfav) v. 4Q 2023 Fav/(Unfav) v. FY 2023 Consumer 4Q As Constant FY As Constant (in millions) 2024 Reported Currency 2024 Reported Currency Net Sales $1,085.1 3.5% 2.4% $3,848.5 1.1% 0.8% Adjusted Operating Income 227.9 (3.1%) (3.5%) 740.3 0.7% 0.7% % of Net Sales 21.0% (140 bps
Slide 14: 2024 Adjusted Earnings Per Share
2024 ADJUSTED EARNINGS PER SHARE FY 2024 v. PY 9.3% Increase $2.95 $2.70 Adj Other 4Q 2023 Tax 4Q 2024 FY 2023 FY 2024 Operating Income, Adj. EPS Rate Adj. EPS Income Net Financial measures which we refer to as “adjusted” are Non-GAAP financial measures. See the accompanying Non-GAAP information and
Slide 15: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Generated Strong Cash Flow Balanced Use of Cash $922M Return to Shareholders • $451 million of cash returned to shareholders through dividends Increase in earnings offset by Invest to Drive Growth higher working capital driven by strategic buying decisions, • Capital expe
Slide 16: 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 17: Key Takeaways
KEY TAKEAWAYS CONTINUED DIFFERENTIATION AND STRENGTHENING OUR LEADERSHIP Long-term trends that fuel our categories remain strong Results demonstrate the effectiveness of our investments in areas that drive the most value Executing on our strategic roadmap with speed, agility, and in alignment with c
Slide 18: 4th Quarter 2024 Business Update, Financial Results, and Outlook
4 Quarter 2024 th McCormick & Company, Inc. Business Update, Financial Results, and Outlook | January 23, 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 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 Year Ended 11/30/2024 11/30/2023 11/30/2024 11/30/2023 1) Operating income margin, impact of special charges, and adjusted operating income margin are calculated as operating income, impact of special charges, and adj
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 have been volatile over the past several years. The exclusion of the effects of foreign currency exc
Slide 22: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES For the year ended November 30, 2024 Year Ended November 30, 2024 Percentage Impact of Percentage Percentage Impact of foreign Impact of Percentage change on Organic Net Foreign Change on change as currency Acquisitions & Change as constant Sales Growth Currency Constant
Slide 23: 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 24: 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