McCormick handily beat second-quarter earnings expectations as increased cooking at home due to the coronavirus-pandemic quarantine boosted the spice and condiment maker's sales.
For the second quarter ended May 31 McCormick reported net income of $195.9 million, or $1.46 a share, up from $149.4 million, or $1.12, in the year-earlier quarter. Adjusted earnings came to $1.47, beating FactSet's consensus estimate of $1.16.
Sales grew 7.6% to $1.4 billion, ahead of FactSet's call for $1.38 billion.
Consumer segment sales rose 26% to $962.6 million, while flavor solutions sales slipped 19% to $438.5 million.
"Our exceptional consumer-segment growth was driven by the substantial increase in demand as consumers were cooking more at home," Lawrence Kurzius, chairman, president and CEO, said in a statement. "In our flavor-solutions segment, our results were significantly impacted by sharp declines in demand from restaurant and other food-service customers as away-from-home dining was significantly curtailed."
The company said consumer segment sales growth was driven by higher volume and product mix in the Americas and Europe, Middle East and Africa regions.
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