Mccormick & Co. today (27 September) upped its forecast for annual earnings on the back of a better tax rate and also reported an increase in third-quarter profits.
The US spice manufacturer said it now sees its full-year earnings per share to be US$3.03 to $3.08, up from a June forecast of $3.01-3.07. It pointed to a “more favourable” tax rate.
The new guidance was given as McCormick booked a 13.5% increase in third-quarter net income to $104.4m. Operating income rose 12.3% to $144.2m for the three months to 31 August.
McCormick’s profits improved on the back of a 6.2% increase in net sales to $977.7m. Acquisitions accounted for half the growth in sales but McCormick said it had managed to increase prices in response to higher commodity costs. Gross margin was up year-on-year.