McCormick posts four successive quarters of double-digit growth

McCormick reported another quarter of strong growth as it continues to profit from brands such as French’s mustard and Frank’s RedHot sauce.

The US company – which also owns brands such as Schwartz, Aeroplane Jelly and Zatarain’s – saw its net sales surge 14% in its third quarter to $1.35 billion. Net income for the three months to 31 August was up 60% on the same period last year to $173.5 million.

The sales growth is down on the 19% rise recorded in both the firm’s first- and second-quarter results earlier this year. It its fourth quarter last year, net sales were up 21%. 

McCormick bought Reckitt Benckiser’s food assets, including the French’s and Frank’s brands, last year in a $4.2 billion deal.

The company said that incremental sales through mid-August from the acquired Frank’s and French’s brands added 10% to its sales increase this quarter.

 Within its flavour solutions unit in the Americas, sales were up 19%, with the former RB brands contributing to 14%. The remaining 5% growth was led by the increased sales to quick service restaurants and “continued flavours and seasonings momentum”.

McCormick CEO Lawrence E. Kurzius said: “McCormick’s strong third quarter and year to date results reflect the successful execution of our strategies. We delivered double-digit sales, adjusted operating income and adjusted earnings per share growth in both the third quarter and year to date. We continued to expand operating margin, while also making significant brand marketing investments during the quarter.

“Both our consumer and flavour solutions segments contributed to our constant currency sales growth of 14%.  Growth in both segments was led by incremental sales from the Frank’s and French’s portfolio. Consumer segment sales growth was also driven by both Americas and Asia/Pacific’s base business and new products, with particular strength in the US and China.”

He added: “McCormick is a global leader in flavour with a broad and advantaged global portfolio which continues to grow and position us to fully meet the demand for flavour around the world. All over the world, people desire great tasting foods and drinks with rich, authentic flavour.  And we deliver flavor across all markets and through all channels.”