10:20 AM EDT, 03/26/2024 (MT Newswires) -- McCormick ( MKC ) recorded better-than-expected fiscal first-quarter results on Tuesday as the company saw sequential volume improvement across its two main segments.

The spices and seasonings producer's adjusted per-share earnings rose to $0.63 during the three months through Feb. 29 from $0.59 a year earlier, above the $0.57 per share consensus of analysts polled by Capital IQ. Sales grew 3% to $1.6 billion, topping the Street's view of $1.55 billion. The stock jumped 9.3% in Tuesday trading.

"We are pleased to start the year with a strong first quarter," Chief Executive Brendan Foley said during an earnings call, according to a Capital IQ transcript. "Our performance reflects the early success of our prioritized investments to improve volume trends and drive profitable growth."

Sales in the consumer segment ticked up 1% to $921.5 million, reflecting a 3% increase in prices that were partially offset by a 2% fall in volume. The company attributed the volume decrease to the discontinuation of lower margin business, slower economic recovery in China, and volume declines in prepared food categories. Flavor solutions inclined 4% to $681.2 million, benefiting from higher prices and improved volume.

"Sequentially from the fourth quarter, volume trends improved in both consumer and flavor solutions," Foley told analysts. "We believe this improvement is an indication of continued progress as we remain focused on driving quality top-line growth throughout our portfolio."

Gross profit margin expanded 140 basis points to 37.4% at the end of the quarter on a favorable product mix, cost savings, and price hikes, among other factors. Selling, general and administrative expenses widened to $361.6 million from $336.1 million year-over-year, the company said.

McCormick ( MKC ) continues to anticipate adjusted EPS of $2.80 to $2.85 for fiscal 2024, while the Street is looking for $2.84. It reiterated its forecast for sales to range from being flat to a 2% decline for the year. The company expects a favorable impact from the previous year's pricing actions and volume trends to improve and return to growth, minus any new macroeconomic headwinds.

"We remain confident in the sustained trajectory of our business, and in our ability to deliver on our 2024 outlook and our long-term financial objectives," Foley said in the earnings statement. "Our results for the quarter, coupled with our growth plans, give us confidence in achieving the mid to high-end of our projected constant currency sales growth for 2024."

Price: 76.07, Change: +6.13, Percent Change: +8.76