McCormick & Co Inc MKC reported second-quarter FY23 sales growth of 8% year-on-year to $1.66 billion, slightly missing the analyst consensus of $1.67 billion.
Consumer segment sales rose 5% to $912.1 million, and Flavor Solutions Segment increased 12% to $747.1 million.
Gross profit was $615.5 million, with the margin expanding 310 basis points Y/Y to 37.1%.
Adjusted operating margin expanded 290 basis points to 14.2%.
Adjusted EPS of $0.60 beat the consensus of $0.57.
"Total sales growth was in line with our expectations, notwithstanding a slower recovery in China, and reflects the strength of our broad global portfolio," said Lawrence E. Kurzius, Chairman and CEO.
"Our year-to-date profit realization combined with the actions we continue to have underway give us the confidence to increase our 2023 profit outlook."
McCormick held $127.4 million in cash and equivalents as of May 31, 2023.
The company generated an operating cash flow of $394 million during Q2.
Outlook: McCormick reaffirmed FY23 revenue growth guidance of 5% - 7%.
MKC raised FY23 Adjusted EPS outlook to $2.60 - $2.65 from $2.56 - $2.61 (consensus $2.63).
Price Action: MKC shares closed lower by 1.50% at $91.85 on Wednesday.
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