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McCormick & Company, Incorporated is a global leader in flavor, specializing in the manufacturing, marketing, and distribution of spices, seasoning mixes, condiments, and other flavorful products for the food and beverage industry . The company operates through two main business segments: Consumer and Flavor Solutions, catering to retailers, food manufacturers, and foodservice businesses . McCormick's product offerings include a wide range of spices and seasonings, condiments and sauces, and culinary-inspired flavor solutions .
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Consumer Segment - Sells a variety of products under brands like McCormick, French’s, Frank’s RedHot, OLD BAY, and Cholula through retail channels such as grocery stores, mass merchandise, and e-commerce.
- Spices and Seasonings - Offers a diverse range of spices and seasonings, which are a significant part of their sales.
- Condiments and Sauces - Provides a selection of condiments and sauces to enhance culinary experiences.
- Recipe Mixes - Supplies convenient recipe mixes for home cooking.
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Flavor Solutions Segment - Provides culinary-inspired flavor solutions to food manufacturers and the foodservice industry, enhancing the taste profiles of various food products.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Brendan M. Foley ExecutiveBoard | Chairman, President, and CEO | None | Joined MKC in 2014; held multiple leadership roles, including COO; became CEO on Sept 1, 2023, and Chairman on Jan 1, 2025. Focused on global growth and sustainability. | View Report → |
Jeffery D. Schwartz Executive | Vice President, General Counsel & Secretary | None | General Counsel since 2014. Oversees legal and compliance matters for MKC. No additional details provided in the documents. | |
Anne L. Bramman Board | Director | None | Director since 2020. Former CFO at Nordstrom and Avery Dennison. Chair of MKC's Audit Committee. Expertise in financial oversight and governance. | |
Lawrence E. Kurzius Board | Non-Executive Director | Board Member at Elanco Animal Health Inc. and CooperCompanies Inc. | Former Chairman and CEO of MKC. Retired as Chairman in Dec 2024 but remains on the Board until the 2025 Annual Meeting. Led MKC through significant growth and acquisitions. | |
Margaret M.V. Preston Board | Director | Managing Director at Cohen Klingenstein LLC; Board Member at Otis Worldwide | Director since 2003. Extensive experience in financial leadership, mergers, and acquisitions. Former CFO at Deutsche Bank Private Wealth Management. | |
Maritza G. Montiel Board | Director | Board Member at Royal Caribbean Group and Comcast Corporation | Director since 2015. Retired Deputy CEO and Vice Chairman of Deloitte LLP. Expertise in governance, financial literacy, and leadership development. | |
Michael D. Mangan Board | Lead Director | None currently held | Director since 2007; Lead Director since 2009. Former CFO of Black & Decker and Ryland Group. Expertise in governance and financial oversight. | |
Patricia Little Board | Director | Board Member at Ulta Beauty, Inc. | Director since 2010. Former CFO at Hershey and Kelly Services. Expertise in financial management, capital planning, and governance. | |
Terry S. Thomas Board | Director | Chief Growth Officer at Flowers Foods, Inc. | Appointed to MKC's Board in January 2024. Over 30 years of experience in CPG industry, including leadership roles at Unilever, PepsiCo, and Coca-Cola. | |
Valarie L. Sheppard Board | Director | Board Member at Ibotta Inc. | Appointed to MKC's Board in June 2024. Retired EVP, Controller, and Treasurer at P&G. Expertise in finance, acquisitions, and governance. | |
W. Anthony Vernon Board | Director | Board Member at Nuvation Bio Inc. and Novocure Limited | Director since 2017. Former CEO of Kraft Foods Group. Expertise in strategic leadership, consumer marketing, and food industry. |
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Given your expectation of a slight decline in your China business for 2024 due to ongoing macroeconomic challenges, what specific strategies are you implementing to drive growth in that market, and how do you anticipate the recent stimulus policies may impact your results?
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With the dock workers' strike now officially occurring, can you elaborate on the extent to which your contingency planning is sufficient, and at what point a prolonged strike could materially impact your operations and financial results?
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Your gross profit margin expanded by 170 basis points this quarter, driven by favorable mix and cost improvements, including lower employee-related benefit expenses; can you discuss the sustainability of these margin gains and whether cost reductions could impact your ability to invest in growth?
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Working capital was a significant source of cash last year but has been a decent-sized use of cash year-to-date; can you clarify your expectations for working capital's impact on cash flow for the full year and how you plan to manage it, especially in light of your contingency planning related to the port strike?
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While you cite positive total company volume growth as an inflection point, what risks do you see that could derail this momentum, particularly given consumer trends toward value-seeking behaviors and economic pressures, and how are you adjusting your strategies accordingly?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Wal-Mart Stores, Inc. | Major retail partner | Consumer | 12% of consolidated sales in 2024, 2023, and 2022. |
PepsiCo, Inc. | Major flavor solutions partner | Flavor Solutions | 13% of consolidated sales in 2024 and 2023, 11% in 2022. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
FONA International, LLC | 2020 | McCormick acquired FONA for $710 million in cash to bolster its Flavor Solutions segment with FONA’s clean and natural flavor manufacturing capabilities, achieving $7 million in annual cost synergies and adding a 2020 annual sales base of approximately $114 million. |
Cholula Hot Sauce | 2020 | McCormick acquired Cholula Hot Sauce for $800 million in cash on a cash-free, debt-free basis, aiming to expand its high-growth hot sauce portfolio with a premium brand known for authentic Mexican flavors and an attractive margin profile, with expected cost synergies of $10 million by fiscal 2022. |
Recent press releases and 8-K filings for MKC.
- Total organic sales increased by 2% in Q1 2025, driven mainly by volume and product mix growth, with robust performance across regions despite selective pricing adjustments.
- The Consumer segment experienced flat sales in the Americas and modest gains in EMEA and Asia Pacific, while the Flavor Solutions segment benefited from high-growth QSR customers and innovation wins, despite some softness from larger CPG accounts.
- Management noted a decline in adjusted operating profit—down 5% overall and 16% in Consumer—due to timing shifts in stock-based compensation and increased investment in marketing and technology, but reaffirmed guidance for the full year with a plan for margin expansion.
- Organic sales in Q1 2025 increased by 2.0% overall, driven by strong volume growth across both the Consumer (1.2% organic growth) and Flavor Solutions (3.3% organic growth) segments, with detailed volume and price impacts discussed during the call.
- The company reported robust segment performance with Consumer net sales of $919.2M and Flavor Solutions net sales of $686.3M, alongside solid financial execution including $121M in dividends and disciplined capital expenditures of $37M, supporting their positive outlook.
- Sales in Q1 remained comparable to the prior year with organic growth of 2% despite a 2% adverse currency effect, reflecting strong volume performance.
- Operating income was reported at $225 million (adjusted), down from last year, while earnings per share were $0.60 compared to $0.62, indicating modest declines.
- The company reaffirmed its fiscal 2025 guidance on sales, operating profit, and EPS, supported by ongoing cost savings and targeted investment initiatives.