McCormick & Co (MKC) - Get McCormick & Company, Incorporated (MKC) Report posted stronger-than-expected third quarter earnings Thursday, but trimmed its full-year profit guidance amid what it called "higher inflation and industry-wide logistics challenges."
The flavor and consumer products group, whose brands include Club House, Billy Bee and Lawry's, said adjusted earnings for the three months ending in August, its fiscal third quarter, came in at 79 cents per share, up 2 cents from last year and 7 cents ahead of the Street consensus forecast.
Group revenues, McCormick said, rose 8% to $1.55 billion, just ahead of analysts' estimates of a $1.538 billion tally.
Looking into the final months of its financial year, McCormick said its sees adjusted profits in the region of $2.97 to $3.02, down from its prior forecast of between $3.00 and $3.05, with sales growing between 8% and 10% on a constant currency basis.
"We are currently operating in a dynamic cost environment and like the rest of the industry, experiencing cost pressures," said CEO Lawrence Kurzius. "While the profit driven by our strong third quarter sales growth was tempered by higher inflation and industry-wide logistics challenges, we expect to manage through this inflationary environment as we have successfully done in the past, including through pricing, and fully offset cost pressures over time."
"As we enter the fourth quarter, we are narrowing our full year sales outlook to the high-end of our previous range and, recognizing there remains a degree of uncertainty in the cost environment, we are lowering our adjusted operating income outlook," he added. We are confident in our robust sales growth momentum and our ability to successfully navigate through the transitory broad-based supply chain challenges the world is currently experiencing."
McCormick shares were marked 1% lower in early Thursday trading to change hands at $82.83 each, extending their year-to-date decline to around 12% and valuing the Hunt Valley, Maryland-based group at around $22.1 billion