logo
  

McCormick Slashes FY22 Earnings Outlook - Update

While reporting financial results for the second quarter on Wednesday, flavor maker McCormick & Co., Inc. (MKC) trimmed its earnings and adjusted earnings guidance for the full year 2022, while maintaining annual sales growth outlook.

The company said the updated guidance reflects a more unfavorable impact of foreign currency rates, the impact of higher cost pressures and the related pricing actions, the unfavorable impact of significant disruption in China from COVID-related lockdowns, the conflict in Ukraine and the Company's growth momentum. In addition, the company now expects a favorable impact from the optimization of its debt portfolio.

For fiscal 2022, the company continues to project earnings in a range of $2.89 to $2.94 per share and adjusted earnings in a range of $3.03 to $3.08 per share on sales growth of 3 to 5 percent, which in constant currency is 5 to 7 percent.

Previously, the company expected earnings in a range of $3.07 to $3.12 per share and adjusted earnings in a range of $3.17 to $3.22 per share on sales growth of 3 to 5 percent, which in constant currency is 4 to 6 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $3.17 per share on sales growth of 4.30 percent to $6.59 billion for the year. Analysts' estimates typically exclude special items.

McCormick said it expects sales growth to be driven by pricing actions, which, in conjunction with cost savings, are expected to offset inflationary pressures over time. McCormick also plans to drive continued growth through the strength of its brands, as well as brand marketing, new products, category management, and differentiated customer engagement.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Seffner, Florida -based Canyon Furniture Co. is recalling ladders sold with bunk bed and hutch sets citing entrapment and strangulation risks, the U.S. Consumer Product Safety Commission said. The about 2,100 units of Canyon Lake and Cottage Colors Bunk Bed and Hutch Sets were sold exclusively at Rooms To Go. Lyft announced the expansion to its partnership with Indeed in Jobs Access program. The ride-hailing company will be providing transportation access for Indeed's Ready to Work program. Indeed's Ready to Work program is a series of free virtual and in-person events for job seekers in several cities across the U.S. from September 15 to October 8, 2022. Pool and Spa drain covers imported to the United States by various companies have been recalled due to violation of the Virginia Graeme Baker Pool and Spa Safety Act, the U.S. Consumer Product Safety Commission announced. The various recalls include pool and spa drain covers manufactured in China and sold exclusively at Amazon.com for different prices ranging from $10 to $12.
Follow RTT