Cholula sauce maker McCormick beats quarterly sales estimates on steady demand
31/03/2026 12:16
March 31 (Reuters) - McCormick MKC.N, which is in advanced talks with Unilever ULVR.L to acquire its food business, beat first-quarter sales estimates on Tuesday, helped by resilient demand for its seasonings and condiments. Value-conscious consumers are increasingly opting to cook at home rather than dining out, driving demand for McCormick's spices and seasonings. Shares of the Hunt Valley, Maryland-based company were up 4% in premarket trading. The company is in advanced talks with Unilever ULVR.L about a potential deal for the British company's food business, which could create a $60 billion company. McCormick has benefited from its spending on brand marketing as well as technology and innovation investments. The spice maker has raised prices to boost its margins to offset higher-than-expected tariff costs, with half of the incremental tariffs on McCormick's products still in place, the company said last quarter. The company sources its most significant raw materials, including pepper and various spices and herbs, from countries outside the U.S. It reported first-quarter revenue of $1.87 billion, compared with estimates of $1.79 billion, according to data compiled by LSEG. Total volumes were down 0.7%, while prices were up 1.9% for the three months ended February 28. Quarterly adjusted profit of 66 cents per share beat estimates of 59 cents. McCormick, like peer General Mills GIS.N, also reaffirmed its annual targets. (Reporting by Sanskriti Shekhar in Bengaluru; Editing by Shinjini Ganguli) ((Sanskriti.Shekhar@thomsonreuters.com))