(Reuters) – McCormick (NYSE:) beat market expectations for second-quarter revenue and gross sales on Thursday, led by sturdy demand for its spices and seasonings in Europe, Center East and Africa.
Clients grappling with still-high prices most well-liked cooking at dwelling to eating out, enhancing volumes throughout the corporate’s shopper section, its greatest unit.
Client gross sales in Europe, Center East and Africa (EMEA) enterprise rose 5%, pushed by 4% improve in volumes within the quarter ended Might 31, at the same time as whole gross sales within the section decreased 0.8%.
The Cholula sizzling sauce maker’s internet gross sales fell 1% to $1.64 billion however edged previous estimates of $1.63 billion, in line with LSEG information. The corporate cited the divestiture of its canning enterprise as a cause for the decline.
Advantages from worth hikes taken over the previous quarters lifted the corporate’s gross revenue margin to 37.7%, from 37.1% a yr earlier.
McCormick reported an adjusted revenue of 69 cents per share within the quarter, in contrast with analysts’ common estimate of 59 cents.
Shares of the Hunt Valley, Maryland-based firm, which reiterated its annual forecasts, have been marginally up earlier than the bell.
