McCormick & Co., Inc. (MKC) Tuesday reported a higher first-quarter profit, as net sales increased, driven by a 7 percent growth in consumer business sales. A favorable tax rate also helped earnings growth. Both earnings per share and revenues beat analysts' expectations.
Assuming continuation of higher material costs and an unfavorable impact of about $5 million from increased retirement benefit expense, the firm expects unchanged earnings per share for the second quarter, however, below analysts' view. The spices and seasonings maker reaffirmed its earnings per share and sales growth outlook for fiscal year 2013.
Alan Wilson, chairman, president and CEO of the company said, "Our financial results for the first quarter included strong growth in our consumer business, earnings per share slightly ahead of our initial outlook and a great start to cash flow for 2013."
Net sales for the first quarter grew 3 percent to $934.4 million driven by 7 percent growth in consumer business sales due to strong volume and product mix. Ten analysts had consensus revenue estimate of $922.66 million for the quarter.
In emerging markets, McCormick experienced particularly strong performance, and consumer business sales were up 14 percent from last year. Volume and product mix for the business grew 5 percent, led mainly by product innovation and brand marketing support. Sales improved in each of the three geographic regions: the Americas, Europe, Middle East and Africa, or EMEA, and Asia/Pacific.
Digital media, in-store merchandising and other brand marketing support also helped to improve first-quarter results, the company said. Meanwhile, industrial business had a slower start to the year and sales declined 2 percent, compared to a 13 percent sales growth in the first quarter of 2012.
In the first quarter, the company's net income increased to $76 million or $0.57 per share from $74.5 million or $0.55 per share in the previous year. On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.56 per share for the quarter. Analysts' estimates typically exclude special items.
Gross profit margin declined to 38.7 percent from 39.2 percent reported a year earlier.
Looking ahead to the second quarter, the company expects earnings per share to be comparable to $0.60 reported last year. Analysts are looking for earnings of $0.65 per share for the quarter. .
For full-year 2013, the firm continues to expect earnings per share to be in the range of $3.15 to $3.23. It also reaffirmed its expectation to grow sales in the range of 3 to 5 percent in local currency, largely from higher volume and product mix. The company sees a minimal impact of foreign currency exchange rates based on current rates.
Analysts expect the company to report earnings of $3.21 per share, on revenues of $4.22 billion for fiscal 2013.
MKC closed Monday's regular trading at $72.71 on the NYSE. In the pre-market activity, the shares are down 0.63 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.