2023-03-28 07:09:35 ET
McCormick & Company ( NYSE: MKC ) reported better than expected earnings results on Tuesday and reaffirmed full-year guidance.
For the fiscal first quarter, the spice giant notched $0.59 in adjusted earnings per share, $0.09 better than analyst expectations, while $1.56B in revenue for the quarter narrowly edged expectations. Management credited an 11% increase in sales due to pricing actions, helping to offset some volume declines.
"We drove considerable improvement in our gross margin performance in the first quarter, despite experiencing the highest cost inflation we expect for the year as well as continued elevated costs in our Flavor Solutions segment to meet high demand,” CEO Lawrence E. Kurzius commented. “As we look ahead to the balance of the year, we will continue to focus on capitalizing on strong demand, optimizing our cost structure, and positioning McCormick to deliver sustainable growth and long-term shareholder value.”
He added that the company is on track to reach $75M in cost savings for the fiscal year due to supply chain normalization and efficiency efforts.
For fiscal year 2023, the Maryland-based consumer staples producer anticipates sales to increase 5% to 7% as compared to 2022, suggesting upside to the 5.29% consensus. Earnings per share for the year are expected to be in the range of $2.56 to $2.61 on an adjusted basis, against a $2.57 consensus.
Shares of McCormick ( MKC ) moved about 1.6% higher in premarket action after the print .
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McCormick tops earnings expectations, eyes additional cost savings