HUNT VALLEY, Md. - McCormick (NYSE:MKC) & Company, Incorporated (NYSE: MKC), known for its production and distribution of flavor products, announced a forthcoming change in its executive leadership. Lawrence E. Kurzius, who currently serves as the Executive Chairman, is set to step down from his role on December 31, 2024. Kurzius, after a 22-year tenure with the company, will continue to serve on the board but will not seek re-election at the annual shareholder meeting in March 2025.
Succeeding Kurzius, Brendan Foley, the current President and Chief Executive Officer of McCormick, will assume the additional role of Chairman effective January 1, 2025. Foley, who has a 10-year history with the company, has held various leadership positions and has been a member of the Management Committee since 2015.
Kurzius expressed confidence in the executive team's ability to maintain the company's strong performance, attributing his decision to both the Board's succession planning and his own retirement plans. He praised the team's deep industry expertise and passion for the business.
Foley recognized Kurzius as a transformational leader and mentor, lauding his innovative approach and contribution to the company's growth and shareholder value. Foley anticipates continuing McCormick's advancement in the flavor sector and delivering on the company's long-term goals.
McCormick & Company has a significant presence in the global flavor market, with over $6.5 billion in annual sales and operations in 150 countries. The company's portfolio includes a variety of brands in the herbs, spices, seasonings, and condiments categories. It operates under two segments, Consumer and Flavor Solutions, which together drive sustainable growth for the business.
The information for this article is based on a press release statement from McCormick & Company, Incorporated.
In other recent news, McCormick & Company has reported a rise in its quarterly dividend from $0.42 to $0.45 per share, marking the company's 101st year of continuous dividend payments and its 39th year of consecutive dividend increases. The company also reported robust third-quarter earnings, with a 15% rise in adjusted operating income to $288 million year-over-year. Adjusted earnings per share reached $0.83, surpassing the consensus estimate of $0.67. Analyst firms including TD Cowen, Jefferies, and HSBC maintained a Hold rating on McCormick's stock, while BofA Securities lifted McCormick's stock target and maintained a Buy rating.
Additionally, McCormick outlined a strategy to achieve a 4% organic growth rate by the fiscal year 2026, shifting its growth strategy away from relying on acquisitions. The company also anticipates organic sales growth of 2-3% for fiscal year 2025, aligning with consensus estimates. McCormick's long-term growth targets remain unchanged, aiming for increases in net sales, operating income, and earnings per share over the next five years.
In other developments, U.S. Senate candidate David McCormick has taken legal action seeking permission for mass challenges to provisional ballots in Philadelphia. McCormick is currently leading against Democratic incumbent Senator Bob Casey by approximately 34,600 votes. McCormick has requested that the court sequester provisional ballots cast by voters whose mail-in or absentee ballots were rejected due to issues such as a missing inner secrecy envelope. These are recent developments in McCormick's operations and performance.
InvestingPro Insights
As McCormick & Company prepares for this significant leadership transition, InvestingPro data provides valuable context for investors. The company's market capitalization stands at $20.82 billion, reflecting its substantial presence in the flavor industry. McCormick's revenue for the last twelve months as of Q3 2024 was $6.68 billion, aligning closely with the annual sales figure mentioned in the article.
One of the key InvestingPro Tips highlights that McCormick "has raised its dividend for 39 consecutive years." This impressive track record of dividend growth underscores the company's financial stability and commitment to shareholder returns, which may be reassuring to investors during this leadership change. The current dividend yield is 2.32%, with a notable dividend growth of 15.38% over the last twelve months.
Another relevant InvestingPro Tip indicates that McCormick "operates with a moderate level of debt." This financial prudence could provide the incoming Chairman, Brendan Foley, with flexibility to pursue growth initiatives or navigate potential challenges in the flavor market.
It's worth noting that InvestingPro offers 8 additional tips for McCormick, providing even more comprehensive insights for investors interested in a deeper analysis of the company's financial health and market position.
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