Spices and seasonings firm McCormick & Company has posted a 2% sales increase for the second quarter period, with the company citing success of new products, marketing programmes and pricing actions.
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Gross profit margin reached 39.2%, from 38.4% in the prior year period, and earnings per share rose to US$0.46 compared to $0.31 in the second quarter of 2005.
During the quarter, McCormick acquired the remaining 49% interest in Dessert Products International, in exchange for its 50% interest in the Signature Brands, LLC joint venture.
In addition, the company completed the acquisition of the assets of Epicurean International, a business with annual sales of approximately $50m, on Tuesday (27 June).
“Acquisitions are part of the company’s growth strategy and an important driver of its goals to grow sales 3-5% and increase earnings per share 8-10%,“ McCormick said in a statement.
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By GlobalDataIn its outlook the group said that its gain on the joint venture transaction has led to an increase in projected earnings per share for 2006 to $1.41-$1.44 from $1.21-$1.24.
McCormick & Company chairman, president and CEO Robert Lawless said: “We have had strong financial results through the first half of our 2006 fiscal year. Despite the elimination of some low margin business, sales in local currency were up 3%. Both the consumer and industrial businesses are benefiting from the launch of new products, cost savings programmes and pricing actions that provide an offset to the higher costs of packaging, energy and benefits.
“Our leadership team and employees throughout McCormick are working hard and making great progress. As we position the company for the future, I am confident that McCormick’s shareholders can look forward to increased sales, improved margins and higher profits.”
