McCormick Cuts FY21 EPS Outlook, Warns About Cost Inflation

  • McCormick & Company Inc MKC reported third-quarter FY21 sales growth of 8% year-on-year, to $1.549 billion, marginally beating the analyst consensus of $1.540 billion. Sales improved 17% on a two-year basis. 
  • The consumer segment sales rose 1.2% Y/Y, and flavor solutions sales increased 21%.
  • The gross profit rose 1.6% Y/Y to $599.6 million. The gross margin contracted 260 basis points to 38.7%, driven by higher cost inflation and unfavorable product mix.
  • The operating margin was 17.1%, and operating income for the quarter fell 2.9% to $265 million. Adjusted operating income margin shrank 150 basis points to 17.6%.
  • McCormick held $312.6 million in cash and equivalents as of August 31, 2021. Net cash provided by operating activities for the nine months totaled $372.9 million.
  • Adjusted EPS of $0.80 beat the analyst consensus of $0.72.
  • "We are currently operating in a dynamic cost environment and like the rest of the industry, experiencing cost pressures," said CEO Lawrence E. Kurzius.
  • Outlook: McCormick has cut the FY21 adjusted EPS outlook to $2.97 - $3.02 (prior $3.00 - $3.05) versus the consensus of $3.02.
  • The company now expects to grow FY21 sales Y/Y by 12% - 13% (prior view 11% - 13%).
  • Price Action: MKC shares are trading lower by 1.28% at $82.61 on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTrading IdeasBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!