HUNT VALLEY, MD. —McCormick & Co. expects consumers cooking at home more to increase sales of its spices and seasonings in 2025, but potential tariffs are a concern.

“Healthier and better-for-you trends, as well as the desire to stretch budgets, are fueling a continued interest in cooking from scratch, reinforcing the demand for flavor and for McCormick’s categories,” Brendan M. Foley, president and chief executive officer, said in a March 25 earnings call to discuss first-quarter results. “Spices and seasonings remain the top growing center-store category. As a result, consumption trends in our business remain strong. Ultimately, we expect the global consumer segment to continue to benefit from these secular trends, and we have the plans and advantaged portfolio to capitalize on them.”

In the quarter ended Feb. 28, Hunt Valley-based McCormick & Co. had net income of $162 million, or 60¢ per share on the common stock, which was down 2.2% from $166 million, or 62¢ per share, in the previous year’s first quarter. Sales increased to $1.606 billion from $1.603 billion.

McCormick & Co. reaffirmed its fiscal-year outlook for sales (zero to 2% growth) and operating profit (3% to 5% growth). The outlook reflects plans to offset costs related to US import tariffs on China with savings from the comprehensive continuous improvement (CCI) program and targeted price adjustments.

“We don’t believe our current planned actions will be material to the total business or will have a significant impact on our volume mix outlook for the year,” said Marcos Gabriel, chief financial officer. “That said, due to continued uncertainty on this topic, our outlook does not include any additional impacts from tariffs that could potentially be implemented this year. As things evolve, we will provide updates on our outlook within our typical reporting basis.”

In the United States, McCormick gravy and chili recipe mixes drove growth, according to the company.

| Photo: ©BILLTSTER – STOCK.ADOBE.COM

Within the consumer segment, sales were flat at $919 million. Currency had a 1% unfavorable impact. Operating income fell 16% to $147 million, primarily due to pricing as well as increased selling, general and administrative costs. In the United States, McCormick gravy and chili recipe mixes drove growth since they deliver on value and convenience, Foley said.

“In mustard, we made great progress globally over the last four quarters and are pleased to see that our plans are driving great results,” he said. “In the first quarter, we drove dollar, unit and volume share gains in the Americas. In Poland, one of the top mustard consuming countries, our mustard consumption continues to grow, and we are also realizing dollar share gains. In addition, we are gaining dollar share in the UK.”

Within the Flavor Solutions segment, sales increased 1%to $686 million. Operating income increased 28% to $79 million, driven by product mix, pricing and cost-savings.

“The areas of pressure are primarily in our Flavor Solutions business,” Foley said. “In the Americas and in EMEA, some of our CPG customers continue to experience softness in volumes within their own businesses. We continue to work on offsetting these trends through innovation and collaboration with customers and by winning new customers. The foodservice environment remains challenged. While our food away-from-home performance continues to outpace the industry, we are seeing flat performance in branded foodservice in the Americas, as well as some of our customers are seeing softness in their volumes due to a slowdown in foot traffic.”