US spice maker McCormick & Co. has booked lower first-half profits as margin softness offset sales gains.

Operating profit slipped to $228m, down from $233.9m in the first half of 2012. Margins dipped from 39.3% to 33%, McCormick revealed. Lower income taxes meant net income for the period came in only marginally below last year, at $154.6m compared to $154.9m.

Net sales in the six months to the end of May totalled US$1.93bn, up from $1.89bn in the corresponding period of last year. The company said top-line growth was driven by higher volumes and product mix adjustments in the consumer business.

During the period, the company emphasised it followed a number of strategic objectives, including the acquisition of Chinese spice maker Wuhan Asia-Pacific Condiments (WAPC), the group emphasised. As a consequence, McCormick raised its full-year sales growth forecast by a percentage point to a 4-6% range.

However, the company lowered its operating income outlook to reflect the $4m in transaction costs associated with the deal. McCormick now expects operating income to grow by 5-7%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.