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McCormick has reaffirmed its financial outlook for fiscal 2023.
Daniel Acker/Bloomberg
McCormick
stock was dropping Tuesday after the seasonings maker reported revenue below Wall Street expectations as China sales suffered.
McCormick
(ticker: MKC) reported adjusted third-quarter earnings of 65 cents a share on revenue of $1.69 billion. Earnings were in line with the expectations of analysts surveyed by FactSet, but revenue was below the consensus call of close to $1.7 billion.
“Our results reflect strong underlying business trends that were in line with our expectations across our business, notwithstanding our Consumer segment in APAC, where the pace of China’s economic recovery has been slower than anticipated,” Chief Executive Brendan Foley said in the earnings release.
Sales for the consumer segment in the Asia-Pacific region in the third quarter declined 16% from last year, while sales in the Americas and Europe, the Middle East, and Africa regions increased 1.4% and 15%, respectively.
Despite a slowdown in China’s economic recovery, total sales for the quarter increased 5.5% from the prior year. McCormick said this increase reflected an 8% hike in prices.
McCormick also reaffirmed its sales and operating profits outlook for the full year.
Shares of McCormick were falling 9.4% to $67.67, and were on pace for their lowest close and largest percentage decrease since March 2020, according to Dow Jones Market Data. The stock was the worst performer in the
S&P 500
Tuesday, and has now dropped 18% in 2023.
Write to Angela Palumbo at angela.palumbo@dowjones.com
