McCormick & Co. booked an increase in full-year sales and adjusted earnings, boosted by it acquisition of WAPC in China and investments in brand building and innovation.
The US spice maker booked a 3% sales increase during 2013, with net revenue rising to US$4.1bn. McCormick attributed “about half” of this gain to the WAPC acquisition.
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Operating income was recorded at $550.5m for the full year, down from $578.3m last year. Adjusted operating income was $591m in 2013 compared to $578m in 2012.
The favourable impact of higher sales and CCI cost savings were offset in part by a $20m increase in retirement benefit expense, a $10m increase in brand marketing support and higher material costs, the company said.
Adjusted net income rose 3% to $418.2m, up from $407.8m.
Looking to 2014, McCormick predicted growth of between 3-5% of sales and 6-8% of operating income. The group said it is responding to “competitive activity” “with increased brand marketing, accelerated innovation and improved agility”.
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