McCormick Q1 Highlights: 3% Sales Growth, Earnings Beat, Reaffirms FY23 Outlook & More

McCormick & Co Inc MKC reported first-quarter FY23 sales growth of 3% year-on-year to $1.57 billion, beating the consensus of $1.54 billion.
Flavor solutions segment sales increased by 10%, driven by 13% growth in the Americas and a 7% increase in EMEA.
Consumer segment sales fell 1.8%, impacted by a 9% decline in the segment's EMEA sales and a 15% decrease in the Asia Pacific region.
Gross profit was $562.9 million, with the margin declining 80 basis points Y/Y to 36%.
Adjusted operating margin compressed 40 basis points to 14.5%.
Adjusted EPS of $0.59 beat the consensus of $0.51.
McCormick held $356.8 million in cash and equivalents as of February 28, 2023.
The company generated an operating cash flow of $103 million during Q1.
Outlook: McCormick reaffirms FY23 revenue growth guidance of 5% - 7%. Operating income is expected to grow 10% - 12%.
MKC reaffirmed its FY23 Adjusted EPS outlook of $2.56 - $2.61 (consensus $2.57).
Price Action: MKC shares are trading higher by 4.78% at $77.60 in premarket on the last check Tuesday.

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