McCormick beats estimates as sales rise 17%

McCormick reported third-quarter sales of $2.02 billion, up 17% from a year earlier and above analysts’ $1.98 billion estimate, while adjusted earnings per share of 86 cents topped a 76-cent forecast. The company’s reported earnings fell sharply, reflecting special charges. Organic sales grew 2% as a 2.2% increase in prices more than offset a 0.3% decline in volume and product mix. McCormick said its results included contributions from its acquisition of McCormick de Mexico. Gross profit margin rose 1.9 percentage points to 39.3%, with the company citing productivity initiatives and acquisition contributions, partly offset by higher commodity and freight costs. Reported earnings per share fell to 36 cents from 84 cents a year earlier. Net income declined to $97.6 million from $225.5 million. The company’s $141.5 million in special charges included transaction and integration costs and a noncash impairment tied to a Malaysia pepper-sourcing project, according to one account. The reports did not provide a complete breakdown of the charges, and their descriptions of the items were not fully consistent.