(Reuters) – McCormick beat market expectations for second-quarter profit and sales on Thursday, led by strong demand for its spices and seasonings in Europe, Middle East and Africa.
Customers grappling with still-high costs preferred cooking at home to dining out, improving volumes across the company’s consumer segment, its biggest unit.
Consumer sales in Europe, Middle East and Africa (EMEA) business rose 5%, driven by 4% increase in volumes in the quarter ended May 31, even as total sales in the segment decreased 0.8%.
The Cholula hot sauce maker’s net sales fell 1% to $1.64 billion but edged past estimates of $1.63 billion, according to LSEG data. The company cited the divestiture of its canning business as a reason for the decline.
Benefits from price hikes taken over the past quarters lifted the company’s gross profit margin to 37.7%, from 37.1% a year earlier.
McCormick reported an adjusted profit of 69 cents per share in the quarter, compared with analysts’ average estimate of 59 cents.
Shares of the Hunt Valley, Maryland-based company, which reiterated its annual forecasts, were marginally up before the bell.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Mohammed Safi Shamsi)
Comments