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McCormick & Company Incorporated (MKC-0.01%) has submitted its 10-Q filing for the quarterly period ended February 28, 2025.
The filing includes financial statements for the quarter, showing net sales of $1,605.5 million, a slight increase from $1,602.7 million in the same quarter the previous year. The increase is attributed to a 2.2% rise in volume and product mix, partially offset by a 1.8% negative impact from currency fluctuations.
Cost of goods sold for the quarter was $1,001.5 million, resulting in a gross profit of $604.0 million, compared to $599.3 million in the previous year. The gross profit margin improved by 20 basis points to 37.6%, primarily due to cost savings from the Comprehensive Continuous Improvement program.
Selling, general, and administrative expenses increased to $378.8 million from $361.6 million, driven by higher stock-based compensation expenses and increased advertising and promotional spending.
Operating income for the quarter was $225.2 million, down from $233.5 million in the previous year. This decrease reflects higher SG&A expenses and the impact of currency fluctuations.
Net income for the quarter was $162.3 million, compared to $166.0 million in the previous year. Diluted earnings per share were $0.60, down from $0.62 in the previous year, primarily due to lower operating income and decreased income from unconsolidated operations.
The company reported cash provided by operating activities of $115.5 million, while cash used in investing and financing activities was $37.1 million and $155.2 million, respectively.
McCormick anticipates net sales growth of 0% to 2% for fiscal 2025, with an expected gross profit margin improvement of 50 to 100 basis points. The company projects an increase in operating income of 3% to 5% and adjusted diluted earnings per share between $3.03 and $3.08.
The filing also discusses various financial agreements, including a $1.5 billion revolving credit facility and a $500 million revolving credit facility, both of which are used to support the company's liquidity needs.
McCormick does not anticipate any significant changes in its risk factors from those disclosed in its Annual Report on Form 10-K for the fiscal year ended November 30, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the McCormick & Company Incorporated quarterly 10-Q report dated March 25, 2025. To report an error, please email earnings@qz.com.