June 27 (Reuters) - McCormick ( MKC ) beat market
expectations for second-quarter profit and sales on Thursday,
led by strong demand for its spices and seasonings in Europe,
Middle East and Africa.
Customers grappling with still-high costs preferred cooking
at home to dining out, improving volumes across the company's
consumer segment, its biggest unit.
Consumer sales in Europe, Middle East and Africa (EMEA)
business rose 5%, driven by 4% increase in volumes in the
quarter ended May 31, even as total sales in the segment
decreased 0.8%.
The Cholula hot sauce maker's net sales fell 1% to $1.64
billion but edged past estimates of $1.63 billion, according to
LSEG data. The company cited the divestiture of its canning
business as a reason for the decline.
Benefits from price hikes taken over the past quarters
lifted the company's gross profit margin to 37.7%, from 37.1% a
year earlier.
McCormick ( MKC ) reported an adjusted profit of 69 cents per share
in the quarter, compared with analysts' average estimate of 59
cents.
Shares of the Hunt Valley, Maryland-based company, which
reiterated its annual forecasts, were marginally up before the
bell.