The Company Reaffirmed its 2024 Guidance and Provided Expectations for 2028

HUNT VALLEY, Md., Oct. 23, 2024 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, yesterday held an Investor Day at the company's Global Headquarters in Hunt Valley, Maryland. Brendan M. Foley, President and CEO, along with members of McCormick's leadership team shared plans to drive sustainable growth by leveraging its competitive advantages and successfully executing on its proven strategies.

Investor Day Financial Highlights

• McCormick reaffirmed all components of its 2024 Outlook which was previously announced on October 1, 2024 during its earnings call. The Company anticipates achieving the mid to high-end of its projected Net Sales growth range and the high-end of its adjusted earnings per share range for 2024.
  
  

• McCormick expects 2025 to be a year of continued momentum supported by the effectiveness of its 2024 prioritized investments. The Company anticipates volume growth in-line with its organic long-term growth objective. The Company also expects to drive margin improvement and profitability growth rates closer to its long-term objectives.
  
  

• McCormick reaffirmed its long-term growth objectives for Net Sales of 4% to 6%, Operating Income of 7% to 9%, and Earnings Per Share of 9% to 11%. The Company expects to achieve these objectives, at the low end, on a compounded annual growth rate basis over the five-year period ending 2028, without the benefit of acquisitions. The Company expects to reach at least $8 billion in annual Net Sales by 2028.

Brendan M. Foley, President and CEO, stated "McCormick is flavor. It is our history, and it is our future. Our business is differentiated from others in the industry as we do not compete for calories, we flavor them. We have robust plans that leverage the demand for flavor and the strength of our brands. We are increasing our investments in the core categories that drive the greatest value for McCormick.

Our strategies have proven to be effective by driving growth and compounding that growth over the years.  It takes a great organization, a strong culture of growth, and a great leadership team to deliver performance. I am confident we have the right leadership team in place and engaged employees globally to deliver on our long-term objectives with industry leading performance."

Forward-Looking Information

Certain statements contained in this release, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges, acquisitions, brand marketing support, volume and product mix, income tax expense, and the impact of foreign currency rates are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "believe" and "plan" and similar expressions. These statements may relate to: general economic and industry conditions, including  consumer spending rates, interest rates, and availability of capital; expectations regarding our long-term constant currency growth in sales, adjusted operating income, and adjusted earnings per share; expectations regarding sales growth potential in various geographies and markets, including the impact from brand marketing support, product innovation, and customer, channel, category, heat platform and e-commerce expansion; expected trends in net sales and earnings performance and other financial measures; the expected impact of pricing actions on the Company's results of operations, including our sales volume and mix as well as gross margins; the expected impact of the inflationary cost environment on our business; the expected impact of factors affecting our supply chain, including the availability and prices of commodities and other supply chain resources including raw materials, packaging, labor, energy, and transportation; the expected impact of productivity improvements, and cost savings, including those associated with our CCI and GOE programs and Global Business Services operating model initiative; the ability to identify, attract, hire, retain and develop qualified personnel and develop the next generation of leaders; the impact of the ongoing conflicts between Russia and Ukraine, Israel and Hamas, and in the Red Sea, including the potential for broader economic disruption; expected working capital improvements; the expected timing and costs of implementing our business transformation initiative, which includes the implementation of a global enterprise resource planning (ERP) system; the expected impact of accounting pronouncements; the expectations of pension and postretirement plan contributions and anticipated charges associated with those plans; the holding period and market risks associated with financial instruments; the impact of foreign exchange fluctuations; the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing; the anticipated sufficiency of future cash flows to enable the payments of interest and repayment of short- and long-term debt, working capital needs, planned capital expenditures, quarterly dividends and our ability to obtain additional short- and long-term financing or issue additional debt securities; and expectations regarding purchasing shares of McCormick's common stock under the existing repurchase authorization.