08:56 AM EDT, 03/25/2025 (MT Newswires) -- McCormick ( MKC ) reported an unexpected decline in fiscal first-quarter earnings on Tuesday while sales were mostly in line with market estimates, as volume gains were offset by foreign-exchange headwinds.

The spices and seasonings producer's adjusted earnings came in at $0.60 a share for the quarter ended February, down from $0.63 and year earlier and beneath the consensus on FactSet for $0.64. Sales nudged 0.2% higher to $1.61 billion, largely meeting the Street's view, reflecting volume growth of 2% and a negative impact from foreign currency of the same percentage.

Shares of the company decreased 3.4% in premarket activity.

"We are pleased to start the year with solid first-quarter results that are in line with our expectations, as we are managing a dynamic environment," Chief Executive Brendan Foley said in a statement. "We achieved share gains in core categories across key markets and delivered volume growth in both the consumer and flavor solutions segments."

Sales in the consumer segment nudged 0.2% lower to $919 million amid declines in the Americas and Europe, the Middle East and Africa. Flavor solutions revenue inclined 0.8% to $686 million. Foreign-exchange headwinds weighed on both segments, while sales advanced on an organic basis.

Gross profit margin expanded by 20 basis points year over year to 37.6%, aided by the company's cost savings program. Selling, general and administrative expenses widened to $378.8 million from $361.6 million in the prior-year quarter.

For fiscal 2025, McCormick ( MKC ) continues to project adjusted EPS of $3.03 to $3.08 and sales to be in a range of flat to up 2%. The Street is looking for non-GAAP EPS of $3.07 and sales of $6.82 billion.

The company plans to counterbalance costs related to US tariffs on Chinese imports with its expense savings program and targeted price adjustments. The full-year guidance doesn't include any potential impacts from additional tariffs this year, due to the uncertainty regarding their implementation dates and retaliatory duties imposed by other countries on the US, it said.

"We continue to be well positioned with our cost savings initiatives to fuel investments and generate operating margin expansion," according to Foley. "We remain confident in the sustained trajectory of our business, and in our ability to deliver on our 2025 outlook, near-term as well as long-term financial objectives and to drive shareholder value."