McCormick & Co. (NYSE: MKC) reported strong revenues of $1.6 billion in Q3, up 3% year-over-year and surpassing analysts’ estimates by $10 million. On a constant currency basis, MKC registered a growth of 6% year-over-year in terms of revenues which was driven by “continued momentum in our Flavor Solutions segment across all three regions.”
Adjusted earnings came in at $0.69 per share versus $0.80 per share in the same quarter last year. Analysts were expecting Q3 earnings of $0.70 per share.
McCormick is a food company that manufactures, markets, and distributes spices, flavoring products, seasoning mixes, and condiments.
The company’s management admitted that supply chain constraints and higher costs continued to prove to be a challenge in Q3.
However, Lawrence E. Kurzius, Chairman and CEO of McCormick & Co. pointed out that “over the coming months, we will be aggressively eliminating supply chain inefficiencies. Importantly, as we had expected in the third quarter, we began to recover the cost inflation that had been outpacing our pricing actions and other levers. We expect this will continue into next year as we plan to fully offset inflation over time.”
McCormick’s FY22 Outlook
The flavoring products company reaffirmed its FY22 outlook and expects sales to grow on a constant currency basis in the range of 3% to 5%. However, operating income is forecasted to drop by 10% to 8% in FY22.
McCormick has projected earnings per share to come in between $2.64 to $2.69 versus $2.80 in 2021.
