McCormick & Company reported a 3% increase in net sales for the fourth quarter of 2024, with organic sales rising 2% driven by volume and product mix. However, adjusted operating income decreased by 1% in constant currency to $308 million, and adjusted diluted earnings per share (EPS) fell to $0.80 from $0.85 in the prior year.
For the full fiscal year 2024, net sales increased by 1%, with organic sales also up 1% due to pricing and volume. Adjusted operating income grew 5% in constant currency to $1,070 million, and adjusted EPS rose to $2.95 from $2.70 in 2023. Gross profit margin expanded by 90 basis points to 38.5% for the full year.
Looking ahead to fiscal year 2025, McCormick projects net sales growth between 0% and 2%, or 1% to 3% on an organic basis, with a 1% unfavorable impact from foreign currency. Adjusted operating income is expected to increase by 3% to 5%, or 4% to 6% in constant currency, while adjusted diluted EPS is forecast to be between $3.03 and $3.08, representing a 5% to 7% increase in constant currency. The company anticipates a higher adjusted effective tax rate of 22% to 23% and a high single-digit decline in income from unconsolidated operations due to the strengthening U.S. dollar.
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