Segment sales grew significantly
McCormick & Company’s (MKC) consumer segment recorded sales of ~$1 billion in fiscal 4Q17, which reflects a YoY (year-over-year) growth of 19.9%. Strong sales across all regions, especially the Americas, drove the segment’s top-line growth.
During the quarter, the segment’s volumes improved 2.2%. Pricing added 2.3% to its sales growth rate, and acquisitions added 13.8%. A favorable currency rate (+1.6%) further supported its top line.
Sales by region
The consumer segment’s revenue increased 24.8% in the Americas, driven by strong growth in the recently acquired RB Foods, which added 19% to the sales growth rate. Improved pricing, new product launches, and expanded distribution capabilities further drove its top line higher. The region witnessed strength in the company’s branded portfolio, which includes McCormick and Lawry spices and seasonings, its namesake recipe mixes, its breakfast products, and its Gourmet Garden products.
In the EMEA (Europe, the Middle East, and Africa) region, the consumer segment returned to growth in Europe. Net sales rose 8.6% in the EMEA region. The RB Foods acquisition added 1% to sales, while Ducros and Vahiné branded products registered improved volumes and pricing. The region saw a negative impact of reduced shelf space by a large retailer in the United Kingdom, which led to McCormick’s consumer segment sales returning to a growth trajectory. Sales in the Asia-Pacific region grew 6%, driven by strong sales in India and China (FXI).
Going forward, strength in McCormick’s base business and RB Foods could drive the consumer segment in fiscal 2018.