McCormick & Company projected its net sales in 2024 to range from no growth to a 2% decline, at an annual rate.
This estimate includes a 1% unfavorable impact from foreign exchange rates, or ranging from a 1% decrease to a 1% increase on a constant currency basis.
With net sales of US$6,662 million in the fiscal year ended November 30, 2023, up 4.9% year-over-year, McCormick is a U.S. company specializing in the manufacture and marketing of seasonings, spices, seasoning blends and related products.
In the same year, its net profits were US$680.6 million, a 0.2% year-on-year decrease.
The company also anticipates that the 2024 sales turnaround will include a favorable impact from previously implemented pricing actions.
On the other hand, the company predicts that its volume and product mix will be impacted by the sale of its Giotti canning business in the third quarter of last year and the pruning of low-margin businesses.
In another indicator, the company expects its gross profit margin for 2024 to range between 50 basis points and 100 basis points higher than its gross profit margin of 37.6% in 2023.
McCormick
The projected 2024 increase in gross profit margin is primarily due to the net effect of the favorable situation impact of pricing actions, favorable product mix impacts, the favorable impact of the anticipated Global Operating Effectiveness Program and cost savings from its Comprehensive Continuous Improvement program, and a low single-digit percentage impact of inflation in 2024 compared to 2023.
McCormick manufactures, markets and distributes spices, seasoning blends, condiments and other flavorful products to the entire food industry.
It is also a partner in a number of joint ventures involved in the manufacture and sale of savory products, the most significant of which is McCormick de Mexico.
Its principal sales, distribution and production facilities are located in North America, Europe and China. Additional facilities are located in Australia, Central America, Thailand and South Africa.