Consumer segment’s sales
McCormick’s (MKC) consumer segment’s net sales fell 0.6% to $0.76 billion. The benefits from the higher volumes and mix were more than offset by negative currency rates. The consumer segment’s volumes and mix improved during the second quarter due to the company’s expanded distribution and new products.
Excluding the impact of currency volatility, the consumer segment’s net sales increased 2.0% on a YoY basis. The consumer segment’s volume and product mix rose 1.4%. The pricing increased 0.6%. Currency fluctuations impacted the net sales by 2.6%.
Sales by regions
The company’s net sales in the Americas increased 2.0% on a YoY basis, which reflected improved volumes and a favorable product mix. The volumes and mix increased 2.2% on a YoY basis due to growth in Zatarain’s frozen portfolio, branded extracts, Frank’s RedHot sauces, and branded Hispanic products. However, weakness in the spices and seasonings category remained a drag. Pricing stayed flat on a YoY basis.
McCormick’s net sales fell 6.5% in the EMEA region, which reflected a negative impact of 7.7% from currency volatility and weak pricing of -0.8% due to promotional activities. The volumes and mix improved 2.0% due to new products, distribution gains, and promotional activities. However, a decline in private label products remained a drag.
The net sales in the Asia-Pacific region fell 3.7% on a YoY basis, which reflected a 6.3% negative impact from currency fluctuations. The volumes and mix fell 3.1%. The net pricing increased 5.7% led by China. India and Australia witnessed growth due to expanded distribution and marketing support.