McCormick & Company (NYSE: MKC) stock got off to a strong start Tuesday morning on newly-released figures. The Hunt Valley, Md.-based “global leader in flavor” reported sales rose 1% in the first quarter from the year-ago period. In constant currency, the company grew sales 4%, with strong results in both the consumer and flavor solutions segments.
Operating income was $197 million in the first quarter compared to $181 million in the year-ago period. Adjusted operating income was $199 million, a 4% increase from $192 million in the first quarter of 2018, and a 6% increase in constant currency.
Earnings per share were $1.11 in the first quarter as compared to $3.18, including the non-recurring net favorable impact of the U.S. tax legislation, in the year-ago period. Adjusted earnings per share rose 12% to $1.12 from $1.00 in the year-ago period.
For fiscal year 2019, McCormick reaffirmed its sales, operating income, and earnings per share outlook.
According to CEO Lawrence Kurzius, "McCormick's strong first quarter results were a great start to the year reflecting the successful execution of our strategies. We delivered against our plans for both sales growth and profit realization and are excited about our momentum.
"Our fundamentals are very strong and we are confident the initiatives we have underway in 2019 position us to continue on our growth trajectory."
The company continues to generate strong cash flow. Year-to-date net cash provided by operating activities through the first quarter of 2019 was $104 million compared to net cash used for operating activities of $21 million through the first quarter of 2018. The increase was driven by higher operating income and working capital improvements.
MKC shares acquired $2.78, or 1.9%, to $146.71
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