Dive Brief:
- McCormick reported a 2% increase in sales for the fourth quarter in its latest earnings report, and a 4% sales increase in constant currency, according to a company statement.
- The company recorded record sales for fiscal year 2016, with cash flow from operations increasing 12% to a record $658 million. That included a 3% increase in sales year-over-year, and a 6% increase in constant currency. Earnings per share increased from $3.11 to $3.69, and adjusted earnings per share rose from $3.48 to $3.78.
- Looking to fiscal year 2017, McCormick anticipates to increase sales year-on-year by 3% to 5%, which is a constant currency projected growth rate of 5% to 7%. It also foresees earnings increases at somewhere between $4.02 to $4.10 per share in fiscal year 2017, compared to $3.69 in 2016.
Dive Insight:
McCormick’s latest earning report brings more good news to investors, who continue to see positives coming out of the spice giant thanks to company leadership's concerted growth efforts.
Company president and CEO Lawrence Kurzius said the results for last fiscal year met the company’s lofty expectations and attributes the growth to improvements in brand marketing, product innovation, expanded distribution and the addition of value-enhancing acquisitions, according to the company's statement.
McCormick has been adding to its portfolio of late, improving its percentage of gluten-free, non-GMO and other organic items. The company was recently named the No. 1 consumer staple company by Corporate Knights’ 2017 Global 100 Most Sustainable Corporations Index.
The company also recently acquired Enrico Giotti SpA, a Florence, Italy-based flavor manufacturer, for nearly $127 million. This expanded its reach on value-added flavor solutions in Europe and added more scale to an already substantial industrial segment business in the Middle East and Africa.