McCormick quarterly sales climb 17% to $2.02 billion as profit falls

CEO says integration planning advancing for Unilever food merger

McCormick & Co. reported fiscal third-quarter sales of $2.02 billion on Thursday, up 17% from a year earlier and ahead of analyst expectations. Net income for the three months ended Aug. 31 fell to $97.6 million, or 36 cents a share, from $225.5 million, or 84 cents a share, in the same quarter a year ago.

The sales growth came primarily from McCormick’s acquisition of McCormick de Mexico, the company said. On an organic basis, sales rose 1.9%.

Stripping out certain one-time items, adjusted earnings came in at 86 cents a share, according to the Wall Street Journal. Analysts polled by FactSet had expected adjusted earnings of 76 cents a share on revenue of $1.98 billion.

Sales across McCormick’s consumer segment jumped 25%, primarily reflecting the McCormick de Mexico acquisition. Organic sales in that segment rose 1% as higher prices offset lower volumes. Sales in the company’s flavor solutions segment rose 8%, or 3% on an organic basis.

Chief Executive Brendan Foley said disciplined productivity initiatives helped offset rising input and freight costs, supporting margin expansion and enabling continued investment in the company’s brands. He added that McCormick continues its work to combine with Unilever’s food business, having made substantial progress on integration planning: “We have established the future leadership team and operating model, mobilized cross-functional resources, and developed detailed plans to support business continuity and planned synergy delivery post-close.”

Looking ahead, McCormick maintained its full-year guidance for adjusted earnings of $3.05 to $3.13 a share for the year ended Nov. 30. Net sales are still projected to rise 13% to 17%, including an up to 13% contribution from McCormick de Mexico. Analysts expect adjusted earnings of $3.09 a share on sales of $7.91 billion, the Journal said, marking a roughly 16% sales gain.

The combination with Unilever’s food business — expected to close by mid-2027 and create a company valued at more than $65 billion including debt — would transfer Unilever’s food portfolio to McCormick as part of Unilever’s broader strategy to focus on beauty, personal care and home products.

Shares rose 3.5% to $48 in premarket trading.