Q3 2024 McCormick & Company Inc Earnings Call Transcript
Key Points
- McCormick & Co Inc (MKC) achieved positive volume growth in the third quarter despite a challenging environment.
- The company saw solid sequential volume improvement in the Americas consumer segment for the third consecutive quarter.
- EMEA and Asia Pacific regions also experienced positive volume growth, driven by new product innovation and expanded distribution.
- Gross profit margin expanded by 170 basis points year-over-year, driven by favorable mix and cost-saving initiatives.
- McCormick & Co Inc (MKC) expects to achieve the mid- to high end of its constant currency sales growth guidance for 2024.
- Sales were flat in constant currency, reflecting flat pricing and a 1% volume increase, impacted by the canning divestiture.
- The environment in China remains challenging, with lower demand impacting the company's performance in the region.
- QSR traffic remains soft, particularly in EMEA, affecting volume trends in the flavor solutions segment.
- The company anticipates a slight negative impact from pricing in the consumer segment in the fourth quarter.
- Cash flow from operations decreased to $463 million in the first nine months of 2024, compared to $660 million in 2023, due to higher working capital and increased incentive compensation payments.
Good morning. This is Faten Freiha, VP of Investor Relations. Thank you for joining today's third quarter earnings call. To accompany this call, we posted a set of slides on our IR website, ir.mccormick.com. With me this morning are Brendan Foley, President and CEO; Mike Smith, Executive Vice President and CFO; and Marcos Gabriel, Senior Vice President, Global Finance and Capital Markets and incoming CFO.
During this call, we will refer to certain non-GAAP financial measures. The nature of those non-GAAP financial measures and the related reconciliations to the GAAP results are included in this morning's press release and slides. In our comments, certain percentages are rounded. Please refer to our presentation for complete information. Today's presentation contains projections and other forward-looking statements. Actual results could differ materially from those projected. The company undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future
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