For the three months ended August 31, 2024, McCormick & Company reported net sales of $1,679.8 million, a slight decrease of 0.3% from $1,684.7 million in the same period of 2023. However, for the nine months ended August 31, 2024, net sales increased to $4,925.7 million from $4,909.4 million in the prior year, reflecting a growth of 0.3%. The consumer segment generated $937.4 million in sales for the quarter, while the flavor solutions segment contributed $742.4 million.
Gross profit for the third quarter of 2024 rose to $649.9 million, up 4.4% from $622.8 million in the previous year, with a gross profit margin of 38.7%, an increase of 170 basis points. For the nine-month period, gross profit increased by 3.8% to $1,868.8 million. Operating income for the third quarter was $286.5 million, a 16.9% increase from $245.0 million in Q3 2023, while for the nine months, operating income rose to $754.1 million from $665.8 million.
Net income for the three months ended August 31, 2024, was $223.1 million, compared to $170.1 million in the same quarter of 2023. For the nine months, net income increased to $573.3 million from $461.3 million. Earnings per share for the third quarter rose to $0.83 from $0.63, and for the nine months, it increased to $2.13 from $1.71.
The company recorded special charges of $1.9 million in Q3 2024, down from $6.1 million in Q3 2023, primarily related to the Global Operating Effectiveness (GOE) program and the transition of a manufacturing facility in EMEA. For the nine months, special charges totaled $7.9 million, significantly lower than the $47.1 million recorded in the same period of 2023.
As of August 31, 2024, McCormick's cash and cash equivalents stood at $200.8 million, up from $166.6 million at the end of November 2023. Total assets increased to $13,204.9 million from $12,862.3 million, while total liabilities rose to $58.6 million from $76.3 million. The company also entered a new $500 million revolving credit facility in August 2024, expiring in August 2025.
Looking ahead, McCormick anticipates net sales for 2024 to range from a decline of 1% to an increase of 1%, with projected operating income growth of 9% to 11% over 2023 levels. The estimated diluted earnings per share for 2024 is projected to be between $2.81 and $2.86, compared to $2.52 in 2023.
About MCCORMICK & CO INC
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