The Rising Influence of Rising Affluence

[DewDiligence]

MKC Sets All-time High on FY2Q12 Results

[FY2Q12 ended 5/31/12.]

http://www.reuters.com/article/2012/06/27/mccormick-results-idUSL3E8HR40X20120627

›Wed Jun 27, 2012 9:53am EDT

June 27 (Reuters) - Spice maker McCormick & Company Inc reported second-quarter sales above analysts' expectations, helped by higher product prices and acquisitions.

McCormick reported a quarterly profit of $80.4 million, or 60 cents per share, compared with $73.6 million, or 55 cents per share, a year earlier.

Sales rose 11 percent to $984 million, driven by higher prices and a rise in organic volumes.

The company also benefited from its 2011 acquisitions of Kitchen Basics, Poland-based spices brand Kamis and Kohinoor Foods, known for its special variety of "Basmati" rice.

Analysts were expecting earnings of 60 cents per share on sales of $969.8 million, according to Thomson Reuters I/B/E/S.

McCormick reiterated its 2012 profit forecast of $3.01 to $3.06 per share. It expects sales for the year to grow between 9 percent and 11 percent.

"To see both organic pricing and volumes increase simultaneously, and to have guidance reiterated is a rare combination in the beleaguered food space these days," J.P. Morgan Securities analyst Ken Goldman said in a note.

Higher prices have squeezed sales volumes at food companies such as ketchup maker H.J. Heinz Co and J.M. Smucker Co over the past few quarters.

McCormick, which began in 1889 as a door-to-door business operating out of a room and a cellar, sells spices, herbs, seasoning blends and sauces to grocers, warehouse clubs and discount and drug stores.‹