McCormick witnessed an 8% rise in sales in Q2 compared to the same period in 2022. That figure was 10% when calculated in constant currency (which adjusts for exchange rate fluctuations), with the consumer and flavour solutions segments of the business performing particularly well.
McCormick’s operating income also reached $222 million in Q2, up from $157 million in the same period of 2022, while adjusted earnings per share increased by more than 25% compared with a year ago.
Chairman and chief executive Lawrence E. Kurzius hailed the second quarter sales results as “strong” and reflective of the successful execution of the firm’s “growth strategies”.
“Our consumer segment sales growth reflects continued effective price realisation and a sequential improvement in volume performance,” Kurzius added.
“Our exceptional performance in flavour solutions continued with our ninth consecutive quarter of constant currency double-digit sales growth. Total sales growth was in line with our expectations, notwithstanding a slower recovery in China, and reflects the strength of our broad global portfolio.”
Looking ahead, McCormick projects sales growth for the entirety of 2023 to reach between 5% and 7%, compared to 2022 results.
That growth is anticipated to be driven by pricing actions, while the firm hopes that cost saving measures will help combat the impacts of inflation.
"We have compelling growth plans in place, including building momentum with our new products and heat platform, and are delivering on our commitment to increasing our profit realization,” Kurzius said.
“We expect the successful execution of our proven strategies will continue to drive profitable growth in 2023.”
Meanwhile, McCormick’s senior director of global food integrity and risk management Clare Menezes spoke to Food Manufacture earlier this year in an exclusive interview about leadership and establishing a “people-first culture”.