Dive Brief:
- McCormick & Co. Inc. reported a 20% dip in net income for the third quarter to $97.6 million from $122.9 million in last year's third quarter, namely due to issues with the company's business in India, Kohinoor Foods Ltd., which McCormick acquired in 2011.
- Net sales, however, grew to $1.06 billion from $1.04 billion last year, due in part to "strong sales growth so far this year and the completion of three acquisitions that expand the company's global presence," The Baltimore Sun reported.
- McCormick now expects its annual earnings to be at the lower end of a $3.11 to $3.18 range.
Dive Insight:
McCormick is still struggling with the same foreign currency headwinds as in previous quarters, such as last quarter, when the company's profit also dipped slightly. In the first quarter, McCormick had already lowered its sales expectations because of currency fluctuations.
McCormick has focused on acquisitions this past year, which have contributed to sales growth for the company: marinades maker Brand Aromatics in March, Italian spice maker Drogheria & Alimentari in May, and Stubb's barbecue sauces in June.
McCormick's announced last month was that 80% of the company's U.S. Gourmet herbs and spices business will be organic and non-GMO by 2016, and, more than 70% of all McCormick branded herbs, spices, and extracts in the U.S. will be labeled non-GMO.