McCormick Sales Jump 17.4% as Mexico Deal Drives Q3 Growth

McCormick & Company reported third-quarter sales of about US$2.02 billion, up 17.4 percent from a year earlier, as consolidation of McCormick de Mexico added substantial scale to the flavor company's reported results.

The headline growth was much stronger than the underlying business. Organic sales increased 1.9 percent, showing that acquisitions and currency movements accounted for most of the reported expansion during the quarter ended August 31.

The Consumer segment generated about US$1.22 billion in sales, up roughly 25 percent. McCormick de Mexico contributed heavily to that increase, while organic Consumer sales grew about 1 percent.

Flavor Solutions sales rose around 8 percent to US$809 million, with organic sales up about 3 percent as the company served food manufacturers and foodservice customers across its international markets.

Adjusted operating income increased to roughly US$359 million from US$294 million a year earlier. Reported operating income was lower because transaction and integration costs affected the statutory result.

Adjusted earnings per share reached US$0.86 compared with US$0.85 a year earlier. The company said productivity actions continued to offset part of the pressure from commodities, freight and other costs.

McCormick reaffirmed its 2026 outlook, including reported sales growth of 13 percent to 17 percent, organic growth of 1 percent to 3 percent and adjusted earnings per share of US$3.05 to US$3.13.

For the food sector, the quarter shows two different stories at once: McCormick is becoming a materially larger company through consolidation, while underlying demand growth remains much slower and keeps pricing, productivity and volume recovery central to the outlook.