McCormick & Co., a global leader in flavor solutions, recently announced its financial results for the 2024 fiscal year. Brendan Foley, the company’s chairman, president, and CEO, highlighted the strong performance driven by the demand for flavor and the strength of their established brands.
For the year ended November 30, 2024, McCormick reported a net income of $788.5 million, or $2.92 per share on common stock, representing a significant increase from the previous year. Adjusted net earnings were $795.6 million, or $2.95 per share, compared to $727.3 million, or $2.70 per share, in the prior year. The company attributed this growth to higher operating income and income from unconsolidated operations, particularly McCormick de Mexico, their largest joint venture.
The company exceeded Wall Street analysts’ expectations, with adjusted earnings per share coming in at $2.95, excluding special charges that impacted EPS by 3¢ in fiscal 2024. Foley emphasized the importance of McCormick’s strong and proven brands, as well as the effectiveness of their strategies and investments in driving growth.
Fiscal 2024 saw a 0.9% increase in net sales to $6.72 billion, driven by pricing and volume growth. The company’s broad portfolio of consumer and flavor solutions, combined with their deep understanding of consumer flavor preferences, allowed them to adapt to evolving trends and consumer needs globally.
In terms of business units, the Consumer segment saw a 1.1% increase in net sales to $3.85 billion, with operating income rising by 1% year over year. The Flavor Solutions segment reported a 0.7% increase in net sales to $2.88 million, with adjusted operating income surging by 14%.
Looking ahead to fiscal 2025, McCormick issued guidance forecasting reported EPS in the range of $2.99 to $3.04 and adjusted EPS between $3.03 and $3.08. The company expects flat to 2% growth in net sales, with organic net sales rising by 1% to 3% and operating income growth of 3% to 5%.
McCormick’s diverse portfolio includes well-known brands such as McCormick, French’s, Frank’s RedHot, Stubb’s, Old Bay, and Cholula, among others. The company remains committed to providing high-quality herbs, spices, seasonings, and flavors to retailers, food manufacturers, and foodservice operators worldwide.
In conclusion, McCormick’s strong financial performance in 2024 reflects the company’s commitment to meeting consumer demand for flavor and innovation. With a focus on powerful brands, strategic investments, and a deep understanding of consumer preferences, McCormick is well-positioned for continued success in the years to come.
