Seasonings giant McCormick & Co. has booked a leap in full-year profits thanks to rising sales worldwide and cost savings from its ongoing restructuring programme.
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The US-based firm posted a 14% rise in net income to US$230.1m for the year to 30 November. Revenue was up 7% to US$2.9bn as McCormick looked to up prices to offset rising commodity costs.
Turnover rose from the company’s consumer and industrial businesses, it said, with a “double-digit increase” in sales to its industrial customers in Europe and Asia-Pacific.
However, McCormick admitted that raw material costs had eaten into its margins. The company’s gross profit margins dipped 0.5%, despite the price increases.
Nevertheless, president and CEO Alan Wilson said sales growth and costs cuts led to an “outstanding increase” in profits. “We exceeded our goals for sales and profit growth in 2007,” he added.
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By GlobalDataWilson said he expects sales and profit growth to be “solid” in the year ahead. He added that McCormick is set to yield $10m in cost savings from tweaks to its supply chain.
Wilson added that McCormick’s acquisition of Unilever’s seasonings business Lawry’s – which it agreed in November – was still being studied by regulatory authorities in the US.
