McCormick & Company (NYSE:MKC), the distributor of spices and herbs, reported strong first-quarter results Tuesday on the back of robust sales figures and tax code changes.
In the three months finishing at the close of February, net income was up more than four-fold at the Baltimore-based company from the same period a year ago at US$422.6mln or US$3.18 per share, against US$93.5mln or 74 US cents per share.
Benefit frox tax reform
On an adjusted basis which excludes a benefit from U.S. tax code changes, its earnings came to US$1.00 per share, up from US$0.76 in the year-ago period.
The group’s net sales, meanwhile, were particularly impressive, jumping to US$757.4mln from US$638.6mln, thanks to McCormick’s recent acquisition of RB Foods and its growth across China and much of the rest of Asia.
Frank’s RedHot sauce and French’s mustard fared well against competition and demand from fast-food restaurants around the globe for McCormick’s products also increased, according to Lawrence Kurzius, McCormick’s chairman, president and chief executive.
On the back of its performance in the first quarter and factoring in a lower income tax rate and other tax revisions, McCormick now expects its earnings per share to range from US$4.85 to US$4.95 on an adjusted basis for 2018.
In pre-market trading, shares in McCormick inched up 3.9% to US$106.97.