Añado hilo para una de las empresas que en mi opinión merece entrar en la categoría de Core de cuaquier buena cartera de dividendos y que como tal siempre parece estar cara. Hoy mismo ha anunciado la compra de algunos productos de la división alimentaria de otra gran empresa (Reckitt Benckiser). Al parecer otras compañías como Hormel Foods, Unilever y Ajinomoto también estaban en la puja pero ha sido McCormick la que finalmente se ha llevado el gato al agua. Aún así el mercado no parece haberse tomado demasiado bien el precio pagado por la adquisición y la cotización cae alrededor del 5% aproximandola al mínimo de las últimas 52 semanas
McCormick inks $4.2B deal for Reckitt Benckiser’s food business
With the acquisition, McCormick (NYSE:MKC) will add Frank’s RedHot Hot Sauce, French’s Mustard, and other well-known condiment brands.
McCormick expects to wring out annual cost synergies of $50M, the majority of which should be achieved by 2020. Significant accretion to margins, and adjusted EPS is also anticipated.
The deal is expected to close in Q3 or Q4 of fiscal 2017
Es una de las grandes y para mi de las mejores pero la veo cara, pero seque está cara desde que la empecé a seguir hace ya años, lo bueno siempre es caro. El dolor no juega aun mucho a nuestro favor así que no ayudará mucho…
Operating income was $254 million in the third quarter compared to $230 million in the year-ago period. Adjusted operating income was $261 million, a 9% increase from $239 million in the third quarter of 2018, and a 10% increase in constant currency.
Sales rose 1% in the third quarter from the year-ago period with gross margin expansion of 100 basis points. In constant currency, the company grew sales 2%.
For fiscal year 2019, McCormick continues to expect strong growth and based on its year-to-date performance raised its earnings per share outlook.
Fiscal Year 2019 Financial Outlook
The company continues to expect another year of strong performance driven by its broad and advantaged flavor portfolio, effective growth strategies and focus on profit realization.
The company continues to expect a two-percentage point unfavorable impact from currency rates on net sales, adjusted operating income and adjusted earnings per share.
The company expects to grow sales compared to 2018 by 1% to 2%, which in constant currency is a 3% to 4% projected growth rate.
The company expects to drive sales growth with new products, brand marketing and expanded distribution. The company has plans to achieve approximately $110 million of cost savings and intends to use these savings to fund investments to drive continued growth and improve margins.
Operating income in 2019 is expected to grow 8% to 9% from $891 million of operating income in 2018.
McCormick increased its projected 2019 earnings per share to be in the range of $5.20 to $5.25 compared to $7.00 of earnings per share in 2018.
Excluding an estimated $0.10 net impact of special charges and an adjustment associated with the non-recurring impact of the U.S. Tax Act in 2019, the company projects 2019 adjusted earnings per share to be in the range of $5.30 to $5.35.
Earnings per share decreased to $5.24 from $7.00, which in 2018 included a $2.26 net non-recurring benefit of the U.S. Tax Act. Adjusted earnings per share rose 8% to $5.35 from $4.97 in 2018.
For the fourth quarter of 2019, sales rose 1% from the year-ago period. In constant currency, the company grew sales 2%. Earnings per share decreased to $1.59 from $1.60 in the year-ago period. Adjusted earnings per share decreased to $1.61 from $1.67, driven by a higher adjusted income tax rate versus the fourth quarter of 2018.
Cash flow from operations grew 15% to a record $947 million in 2019. In November, a 9% increase to the quarterly dividend was authorized, marking the 34th consecutive year of dividend increases.
For fiscal year 2020, McCormick expects to increase sales year-on-year by 2% to 4%. The company expects strong underlying business performance to drive operating income and earnings per share growth, offset by a significant incremental investment associated with business transformation and a higher projected effective tax rate.
Sales declined 2% in the first quarter from the year ago period and in constant currency, sales declined 1%. Both comparisons include a reduction to sales growth of 3%, compared to the first quarter of last year, related to the impact of the COVID-19 outbreak in China.
Operating income was $194 million in the first quarter compared to $197 million in the year-ago period. Adjusted operating income was $195 million, a decrease of 2% from $199 million in the first quarter of 2019 and includes a 10% unfavorable impact from lower China operating income related to the impact of COVID-19.
Earnings per share was $1.08 in the first quarter as compared to $1.11 in the year-ago period. First quarter adjusted earnings per share was also $1.08, a 4% decline from $1.12 in the year-ago period.
For the fiscal year 2020, McCormick is withdrawing its guidance due to the uncertainty of the duration and extent of the COVID-19 pandemic impact. The company reaffirms its long-term financial objectives and capital allocation priorities.
McCormick recorta pronósticos a medida que aumentan los costos. La acción está cayendo después de las ganancias.
“Actualmente estamos navegando en un entorno global desafiante que incluye una inflación de costos persistentemente alta y desafíos en la cadena de suministro, una interrupción significativa en China debido a los bloqueos relacionados con Covid y el conflicto en Ucrania”, dijo el director ejecutivo de McCormick, Lawrence Kurzius, en el comunicado de ganancias de la compañía. “Todos estos elementos se intensificaron a medida que avanzaba nuestro segundo trimestre e impactaron nuestros resultados”…