US flavourings and seasonings producer McCormick & Company has posted a 5% increase in sales for 2006, but saw earnings per share decline from US$1.56 to $1.50 for the year.
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However, excluding restructuring charges and a stock-based compensation expense, EPS rose significantly, the company said.
McCormick attributed the turnover growth to higher volume from new products, marketing programmes, pricing actions and the addition of new ethnic flavours through the 2006 acquisition of Simply Asia Foods.
“Our financial performance in 2006 exceeded our expectations,” said chairman and CEO Robert J. Lawless. “We had four quarters of excellent financial results with strong contributions from both the consumer and industrial businesses.”
Lawless said the growth had been achieved during a time of significant change at the company, with a restructuring plan in progress. He said the company had begun the transformation of its industrial business in the US, and had embarked on a significant revitalisation programme for its spice and seasoning line.
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By GlobalDataIn Europe, the company had increased sales of core herbs and spices in the UK and France, Lawless said.
For 2007, McCormick is forecasting a sales rise of between 4% and 6%. Including estimated restructuring charges of $0.18, earnings per share for 2007 are projected to be in the range of $1.67 and $1.71.
