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McCormick & Company Reveals Strong Sales During Third Quarter 2021; Lawrence E. Kurzius Discusses

McCormick & Company Reveals Strong Sales During Third Quarter 2021; Lawrence E. Kurzius Discusses


HUNT VALLEY, MD
Thursday, October 14th, 2021

With the rise of at-home cooking throughout the pandemic, it is no wonder that companies like McCormick & Company, known for its spices, have seen a boost in their financial success. Reporting its third quarter results for the period ending August 31, 2021, the specialty brand saw an eight percent or $119 million rise in sales from the same period the year before.

Lawrence E. Kurzius, Chairman, President, and Chief Executive Officer, McCormick“Our third quarter results continue to demonstrate the strength and breadth of McCormick's offering. We grew sales eight percent in the third quarter and, notably, on a two-year basis, grew sales 17 percent, which reflects our robust growth momentum in both segments and strong contributions from our Cholula and FONA acquisitions,” said Lawrence E. Kurzius, Chairman, President, and Chief Executive Officer in the report. “Our Consumer segment results reflect the sustained shift to consumer at-home consumption, higher than pre-pandemic levels, as well as lapping the year-ago elevated demand in the lockdown days of the pandemic. In our Flavor Solutions segment, growth was driven equally from packaged food and beverage companies as well as our restaurant and other foodservice customers, many of which were lapping the curtailment in away-from-home dining in the year-ago period.”

While net sales growth was one of the major highlights of the report, other important features include:

  • Operating income was $265 million in the third quarter compared to $273 million in the year-ago period. Adjusted operating income was $272 million compared to $273 million n the third quarter of 2020
  • Earnings per share was $0.79 in the third quarter as compared to $0.76 in the year-ago period. Adjusted earnings per share rose 5 percent to $0.80 from $0.76 in the year-ago period
  • For fiscal year 2021, McCormick updated its sales outlook to expected growth of 12 percent to 13 percent, or 9 percent to 10 percent in constant currency

Looking ahead, McCormick plans to continue capitalizing on the consumer shift to at-home eating and the growing interest in clean and flavorful meals. The company also plans to utilize increased digital engagement and trusted brand names to continue driving growth. Expecting the shift in shopper behavior to continue, McCormick believes that it is well-positioned for further success.

Reporting its third quarter results for the period ending August 31, 2021, McCormick saw an eight percent or $119 million rise in sales from the same period the year before

“The strategic investments we have made, including in our supply chain resiliency and brand marketing, provide a foundation for long-term, sustainable growth while enhancing our agility and our relevance with our consumers and customers,” continued Kurzius. “As we enter the fourth quarter, we are narrowing our full year sales outlook to the high-end of our previous range and, recognizing there remains a degree of uncertainty in the cost environment, we are lowering our adjusted operating income outlook. We are confident in our robust sales growth momentum and our ability to successfully navigate through the transitory broad-based supply chain challenges the world is currently experiencing.”

To read the rest of Kurzius’ remarks and the report in its entirety, click here.

As McCormick enters into its fourth quarter, how will these growth strategies pay off? Stick with Deli Market News to find out.

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