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Home Market Research Markets

Main takeaways from McCormick & Company’s (MKC) Q2 2025 earnings report

by TheAdviserMagazine
4 months ago
in Markets
Reading Time: 2 mins read
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Main takeaways from McCormick & Company’s (MKC) Q2 2025 earnings report
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Shares of McCormick & Company, Incorporated (NYSE: MKC) rose 5% on Thursday following the company’s announcement of its second quarter 2025 earnings results. Earnings beat estimates while revenues matched expectations. The spices maker reaffirmed its outlook for the full year of 2025. Here are the main takeaways from the report:

Earnings beat, revenue in-line  

In the second quarter of 2025, net sales increased 1% year-over-year to $1.66 billion, which was in line with expectations. Organic sales increased 2%. The top line results were driven by volume growth and product mix. GAAP net income decreased 5% to $175 million and earnings per share dropped 4.4% to $0.65 YoY. Adjusted EPS remained flat at $0.69 versus the prior-year period, but surpassed estimates of $0.66.

Strength in Consumer, Pressure in Flavor

In Q2, sales in the Consumer segment grew 3% on both a reported and organic basis, driven by volume growth and product mix. Sales grew across all geographic regions, with the highest growth of 4.9% in EMEA, followed by APAC and Americas at 2.9% and 2.4% respectively. The segment benefited from strong volume growth in spices and seasonings across all regions. The hot sauce category also performed well with share and distribution gains.

Sales in the Flavor Solutions segment decreased 1.3% in Q2 on a reported basis while organic sales remained flat YoY. Sales declined 1% in the Americas and 4.7% in EMEA while the APAC region recorded sales growth of 3.1%.

While the segment benefited from new customer wins and share gains in the Americas, it faced pressure from softness in CPG customers’ volumes in that region and in EMEA. A slowdown in foodservice foot traffic impacted branded foodservice performance in the Americas. Although MKC saw strong volume growth with quick service restaurants, or QSR, customers in the Americas and APAC, it faced pressures on the same in EMEA.

Reaffirmed outlook

McCormick reaffirmed its outlook for fiscal year 2025. Its full-year guidance includes plans to offset tariff-related costs. The company expects net sales for the year to grow 0-2% on a reported basis and 1-3% in constant currency. Sales growth is expected to be driven by volume growth and gradual improvement in the Consumer business in China. GAAP EPS is expected to be $2.98-3.03, representing a growth of 2-4%, and adjusted EPS is projected to be $3.03-3.08, indicating growth of 3-5%.



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