McCormick & Company reported sharply higher sales and profits during the third quarter, with growth driven by last year’s acquisition of Reckitt Benckiser’s food business, which include French’s Mustard and Frank’s RedHot sauce.
The US maker of spices, herbs and flavourings saw sales rise 13.5 per cent to $1.3bn in the three months to end of August, helped by strong demand in the US and China.
Net income jumped 60 per cent to $173.5m for the period as the company also benefited from its costs cutting efforts and a lower US corporate tax rate. Adjusted earnings came in at $1.28 per share, ahead of the $1.27 a share the market had forecast.
“Growth in both [consumer and flavor solutions] segments was led by incremental sales from the Frank’s and French’s portfolio,” said Lawrence E. Kurzius, chairman, president and chief executive. “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.”
McCormick raised its guidance on full year adjusted earnings to between $4.95 and $5.00 per share, up from the $4.85 to $4.95 range it had previously given.
Shares in the company, which hit a record high of $132 earlier this month, rose 0.9 per cent in pre-market trading.