McCormick

MKC Q1 2025 Earnings

Reported Mar 25, 2025 at 7:27 AM ET · SEC Source

Q1 25 EPS

$0.60

MISS 6.85%

Est. $0.64

Q1 25 Revenue

$1.61B

MISS 0.53%

Est. $1.61B

vs S&P Since Q1 25

-60.5%

TRAILING MARKET

MKC -35.3% vs S&P +25.2%

Market Reaction

Did MKC Beat Earnings? Q1 2025 Results

McCormick delivered a mixed first quarter for fiscal 2025, falling short of Wall Street expectations as adjusted diluted EPS of $0.60 missed the $0.64 consensus estimate by 6.85%, and revenue of $1.61 billion edged just 0.53% below forecasts. The hea… Read more McCormick delivered a mixed first quarter for fiscal 2025, falling short of Wall Street expectations as adjusted diluted EPS of $0.60 missed the $0.64 consensus estimate by 6.85%, and revenue of $1.61 billion edged just 0.53% below forecasts. The headline numbers masked a more nuanced story underneath: while the Flavor Solutions segment impressed with operating income surging 28% to $79.00 million on favorable product mix and cost savings, the Consumer segment weighed on results as pricing investments and higher brand marketing costs drove segment operating income down 17% to $147.00 million. A timing shift in stock-based compensation further pressured SG&A expenses, pulling adjusted operating income down 5% to $225.20 million despite a modest 20-basis-point expansion in gross margin to 37.6%. Currency headwinds added roughly $0.03 of drag to EPS. Looking ahead, management reaffirmed its full-year adjusted EPS guidance of $3.03 to $3.08, expressing confidence in CCI cost savings and targeted pricing to absorb tariff pressures, even as the company actively reformulates products to remove certain food dyes amid evolving regulatory scrutiny.

Key Takeaways

  • 2% volume growth offsetting 2% unfavorable currency impact
  • CCI program driving cost savings and gross margin expansion of 20 basis points
  • Share gains in core categories across key markets
  • Flavor Solutions operating income grew 28% (33% constant currency) driven by product mix, pricing, and CCI savings
  • Lower tax rate of 22.3% versus 25.5% in the year-ago period partially offset EPS headwinds
24/7 Wall St

MKC YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

MKC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“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. Our continued volume-driven performance reflects the success of our prioritized investments in the areas that are driving the greatest value and will sustain our momentum for the remainder of 2025 and beyond. We achieved share gains in core categories across key markets and delivered volume growth in both the Consumer and Flavor Solutions segments.”

— Brendan M. Foley, Q1 2025 Earnings Press Release