Investing.com -- McCormick&Co. reported first-quarter earnings that fell short of analyst expectations on Tuesday, sending shares down 4.2% in early trading.
The spice and flavoring company posted adjusted earnings per share of $0.60 for the quarter ended February 28, missing the consensus estimate of $0.64. Revenue came in at $1.61 billion, in line with analyst projections.
McCormick (NYSE:MKC)'s sales were flat YoY, with 2% volume growth offset by a 2% negative currency impact. The Consumer segment saw organic sales rise 1%, while Flavor Solutions organic sales increased 3%.
"We are pleased to start the year with solid first quarter results that are in line with our expectations, as we are managing a dynamic environment," said Chairman, President and CEO Brendan M. Foley.
Despite the earnings miss, McCormick reaffirmed its full-year 2025 outlook. The company expects adjusted EPS of $3.03 to $3.08, compared to the $3.07 analyst consensus.
Operating income declined 3.6% YoY to $225 million in Q1. The company cited increased selling, general and administrative expenses, including higher brand marketing and technology investments.
McCormick's gross profit margin expanded 20 basis points to 37.6%, driven by cost savings from its continuous improvement program.
McCormick maintained its outlook for 1-3% organic sales growth in fiscal 2025.
This content was originally published on Investing.com
