McCormick FY sales hit by forex, India weakness - Just Food
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McCormick FY sales hit by forex, India weakness

28 Jan 2016

Full-year sales from McCormick & Co.'s consumer division have been hit by slower quarterly growth in some emerging markets.

McCormick FY sales hit by forex, India weakness

Full-year sales from McCormick & Co.’s consumer division have been hit by slower quarterly growth in some emerging markets.

For the 12 months ending 30 November, net sales from the consumer business, which markets brands such as Lawry’s and Schwartz, were flat at US$2.63bn.

Operating profit for the consumer division fell to $403.3m from $470.6m as a result of charges linked to McCormick’s move to improve efficiency. In April, the group announced it was moving roles to Poland as one step in its efforts.

Group operating profit fell to US$548.4m, from $603m a year earlier. Net income fell to $401.6m from $437.9m.

Group net sales increased to $4.3bn from $4.2bn, lifted by a better performance from its industrial division. CEO Alan Wilson said sales were helped by product innovation, brand building, expanded distribution and acquisitions.

Fourth quarter consumer sales by region

  • Americas +1% or 3% in constant currency, higher volumes and product mix.
  • EMEA +5%, or +18% in constant currency, helped by Drogheria & Alimentari acquisition and new distribution in Poland and in France from new products and brand marketing.      
  • Asia Pacific -6%, or +1% in constant currency. Sales growth in Australia and China was offset by lower sales in India. In the third quarter of 2015, the company announced a decision to discontinue some lower margin product lines in India.