Spice retailer McCormick is boosting profits

Key conclusions

McCormick reported second-quarter results that topped analyst expectations, sending its shares higher on Thursday.
The Europe, Middle East and Africa segment leads McCormick’s consumer sales.
The company maintained its financial forecasts for 2024.

Shares of McCormick & Company (MKC) rose more than 4% in intraday trading on Thursday after the spice maker’s second-quarter results beat analyst expectations.

McCormick reported diluted earnings per share (EPS) of 68 cents, up from a year earlier and above consensus expectations of 59 cents. Net sales fell 1% to $1.64 billion, slightly above expectations.

Looking ahead, the Maryland-based company reaffirmed its fiscal 2024 EPS guidance of $2.76 to $2.81 and sales growth of 0% to 2%.

McCormick’s EMEA segment leads sales growth

The French-based maker of mustard and Cholula sauce reported a 5% increase in consumer sales in its Europe, Middle East and Africa (EMEA) division, with a 2% decline in the Americas. Growth in EMEA was driven by 4% consumer sales volume growth in the quarter. Overall, consumer sales slowed 1% year over year.

“The investments we made in the consumer segment resulted in significant improvement in sales volume in the second quarter, which led to volume growth, and we expect continued momentum in the second half of the year,” CEO Brendan Foley said in a statement.

McCormick shares rose 4.7% to $70.92 as of 2 p.m. ET on Thursday following the company’s earnings release. Since the beginning of the year, the company’s shares have gained 3.7%.