(Reuters) – McCormick Co (NYSE: McCormick) beat market expectations for second-quarter profit and sales on Thursday, helped by strong demand for its spices and seasonings in Europe, the Middle East and Africa.
As costs remain high, customers prefer cooking at home rather than dining out, boosting sales in the company’s largest consumer segment.
Consumer sales in the Europe, Middle East and Africa (EMEA) business grew 5%, with sales rising 4% in the quarter ended May 31, although total sales in the segment fell 0.8%.
The Cholula hot sauce maker’s net sales fell 1% to $1.64 billion, but were slightly ahead of estimates of $1.63 billion, according to LSEG. The company cited the divestment of its canning business as one of the reasons for the decline.
Thanks to price increases in the past few quarters, the company’s gross profit margin increased to 37.7% from 37.1% in the same period last year.
McCormick reported adjusted profit of 69 cents per share for the quarter, compared with analysts’ average estimate of 59 cents.
The Hunt Valley, Maryland-based company reiterated its annual forecast and shares edged higher in premarket.
