Kasey. Good in our Thank and to steadfast from joining people performance our our growth, safety health the on strategies, crisis. of emerge remain morning, and Throughout McCormick and for you, the employees ensuring we focus the pandemic, everyone. positioning Thanks while stronger us.
combination a of from organization. execute investments to continue We business strength of through model, have and position built the an have as the made our we strategic the capabilities we
despite have and as well execution portfolio, businesses, of flavor drive effective recent global we growth positioned employees our of on very fantastic of our consumer capitalize comparisons acceleration growth year. well to strong two the advantaged and last the lap and broad Our us engagement differentiated those the acquisitions strategies as our challenging that strategies importantly, of as trends
X. per our adjusted income for were X-year strong Slide growth Even as profit earnings and exceptional and adjusted long-term top as executing robust are share delivered and margins. opportunities. as capitalizing gross adjusted Our well momentum brand our reflect also and second behaviors planned investments, operating significant and through operating responding consumer COVID-XX quarter we sales, increased second seen on growth our new costs on a actively on on rate growth performance We strategies considering basis double-digit marketing expanded last to changing year X-year quarter of adjusted results and on inflation driving
We are emerging stronger.
second in deliver enter in our to the confident the strategies, we XXXX that As growth and continue even be the outlook. differentiated of trajectory half to year effectiveness growth stronger we of with of are our we year, well-positioned another an
balanced offerings Slide portfolio and seen advantaged and a X, our The and breadth of volatile channels, quarter evidenced channels. across flavor segments, we broad second with As offerings diversified retail on as customer global our across reach portfolio results. have compelling for performance to in environment creates and consistency customers our strategy drive portfolio in and product every a by again all geographies, a
as of a company substantial During resulting pandemic customers portfolio. also away-from-home products the in and demand our as at increase last cooking the consumers consumption a in consumer in well surge second at-home home, quarter, year’s more in drove onset eating segment food a Solutions for other restaurant customers packaged in our our Flavor Last year, foodservice we with and sharp increases experienced our in segment. our from the demand decline
levels from recovery consumer as than lapping as pre-pandemic well and Our comparisons robust a away-from-home at-home second customers. these ago higher the sustained quarter results consumption reflect year to the of shift
breadth which portfolio new also quarter Cholula of included Our product extended offerings, FONA and with our the reach our and channels and further second from contributions results strong customers. acquisitions,
our we and balanced of differentiate will diversity us sustainably growth. are in these the Taken demonstrate to our McCormick for confident position continue continue together, and impacts and and portfolio strength offering to
our of highlights Now, let the cover me quarter second results.
in income X% decline grew lower sales Solutions by from a year operating quarter constant Turning second XX% rate. $X.XX segments per partially period, shift in quarter growth segment, tax to between our X% few sales higher substantial decline resulted year the offset X% total ago compared mentioned consumer currency. $X.XX in our sales I constant primarily a the the in ago. to currency, moments the an considerable in adjusted our line, Flavor was attributable a In The share adjusted period. both or by in bottom ago earnings X, At impacted factors of by driven grew second Slide segment, to
by stated level COVID-XX As March XXXX and XXXX’s quarter volatility earnings the demand we in given our pace expect vary of in to of growth we call, recovery.
the Importantly outstanding per income grown of of year year-over-year operating include share XX% X% impact sales though, favorable of and and earnings adjusted XX% in Year-to-date, half first have adjusted currency we both the from performance. XX%. with started have respectively, we we grown which
robust outlook. share. our will adjusted and Mike momentum, first increasing I comment With adjusted XXXX for in our outlook While are provide results few more to sales, half details and income per our earnings on a would we operating our operating like moments,
cost are experiencing certainly and We dynamic are pressures. a environment we cost in operating in not unique
usually, most broad-based XXXX. across materials time associated various particularly won’t we there pricing, is with actions costs are our our seeing commodities, costs, inflation effect of go rising quickly and are raising therefore, where packaging and offset until prices To appropriate, with into a escalating are transportation We costs. how but lag late
are discussions can’t further ongoing, pricing As we specifics. provide
managing combination history savings. with of demonstrated and have pricing a inflationary We cost periods a through of
the declined on constant more given the our in to between with period. the to the experienced to segment year will include meaningful elevated performance, sales in believe at-home turn quarter levels X% consumer which away-from-home than year, last quarter business comparisons segment level shift by consumer pre-pandemic comparing consumption or XXXX Slide in dramatic X%. let’s Now, to XXXX these our the X and in to Starting currency, ago highly of we demand second comparisons second be as
continues demand for a basis on and importantly, sustained in product, X-year momentum pre-pandemic outpaces was to up sales consumer increased how highlighting organic segment consumer levels. drive double-digits, our Our consumption shift
Our contributing acquisition X% declined quarter, from second growth. our currency X% sales Cholula Americas in with constant sales the incremental
branded Our consumption we shipment that inventories IRI the consumption unmeasured suspended Throughout second, portfolio under-shipped throughout capacity we the our retailer The the combined in we second been consumption between XX% pipeline. channels changes consumption were in of replenish last a continue the two year-over-year of we total products, U.S. indicated at declined difference in had with which see year, the as demand expansion. attributable high has U.S. are year; and XXXX. and continue our data year, first, continue inventory of and of increase half year factors: second end XX%, and levels and realize last following consumer and manufacturing pantry of refilling first McCormick quarter is our to to consumption to we remained completed last service benefit to restored the improve quarter
between This As There on constraints, performance improving the we that improved inventory share shelf lapping the is correlation we dry supply replenishment throughout masked shelf strong and now or the progress in through conditions last and we improvement by share suspended allocation. remained performance. and had will is year on categories XX% the previously, and due resulting supply are shelf, second and product Products well are the gains quarter products our suspended our We estimate the a are of to customers most have from said seeing mix. approximately back significant spices on know of recipe high shelf somewhat in restocked seasonings impacted shelf. working with performed suspension conditions products of overall on year.
conditions as to anticipate Importantly, improve. share we continue to continue regaining
Focusing categories. which of our XXXX, growth combined major flavor branded of is portfolio our and spices period, mid pure-play all led channels, portfolio, by significant ago the second This our branded double-digits in cooking reflects sauces also with continuation and to further the consumption grew our seasonings outpacing with of IRI consumers consumption versus home the versus U.S. quarter growth XX% categories. the and portfolio consumption two at in and hot and quarter U.S. the year on e-commerce, includes indicates data, triple-digit the of the McCormick strength unmeasured more consecutive third in grew high-teens using branded consumption
the the as shop consumers well. categories McCormick they penetration but products brands pre-pandemic. and have also continue more quarter. our third center outpace elements the drive plan only were and they merchandising Americas, category in the finally, experiences rates consumers, buy new reinvent smaller store were yielding and of inspiration results, Household our growth Our brand, to branded impacting great navigation spices in the stores of implemented, And and favorably thousands rates the repeat grown when rest of this to XXXX early for not to of to with buying initiative key versus outpacing additional our is market growth and improve and for McCormick the where seasonings we implement in-store than is
its Now, Schwartz in core outstanding last Ducros we market maintaining gaining versus the had Notably, turning quarter or brands performance share share quarter year, to in and markets gains second the in momentum, and last continued not quarter. double-digit the our second EMEA, well which quarter last RedHot And as continuing as strong only consumption following year. has last household Frank’s both consecutive are strong retaining seasonings year, strong we we the gained increase second penetration comparison year. but a we also households and growth fifth new for to against to are grew the during spices
significantly instance, reach, was in the digital rates discussed achieving are for Our quarter metrics effective investments by click-through, proving just marketing in above marketing. I in our well EMEA to the second year increased for be last evidenced as as in are brand and compared benchmark engagement to as
X-year spices and our very has Birthday to well its seasonings, prestigious demand supply across both Asia-Pacific of well categories ability Additionally, basis, positioned EMEA RedHot the Frank’s and a grow Vahiné beginning our region. desserts France region, the EMEA creativity France elevated our we the drove was consumption been double-digit to in On award in core quarter our has media the including design. In and as advertising pandemic, compared markets, quarter and received second growth XXXX, the Since growth share Schwartz and total of meet in UK. campaign excellence in mixes to strong. chain of the a for recipe attention homemade to and share contributed the sales in gains Vahiné region national second market and as the Happy
located, recovery Hubei of home where in to as China’s year, levels, well returned operations China. of from increasing pre-pandemic and province, foodservice our is part popularity. fully lockdown with restaurant branded almost results last reflect time that the in second are our in quarter this the Wuhan sales recovery remains delivery During as foodservice as China’s the
with consumption subs significant lapping gains growth elevated consumption of integral growth. growth our we and triple-digits Gourmet second see gaining we Garden, to demand with category significant declined Frank’s spice RedHot to outpacing and share Our double-digit consumer and last quarter to seasonings the new due Teens and momentum continue and the product growing our to Australia, are products In our gaining regions, year. with McCormick all be versus consumption the for and recent share, launches. Across continue XXXX,
rollout of going as choice as glass and our Mates premium appetizers cooking the easily. growth the For instance, glass in And our gains about sachets. Eastern the is EMEA, our into our increasing their European well, consumers Grill shifted the bottle as no have thinking very first all-purpose they and are driving Americas driving to perceive frozen convenience relevance in from consumers to a share seasoning market with Frank’s cooking bottle
be second confident that lapping Moving segment. to the will forward, the in we the capture are year, consumption momentum continue while know we consumer of we year-over-year comparisons challenging half our we in
our We are into come buying products than that for more again. consumers and brands a have experience having good our pre-pandemic
and We consumers our about continued growth new are sustained and as from growth marketing, cooking expect category Cholula our more initiatives home, excited acquisition. as the brand fueled growth well products and management shift long-lasting at our trajectory from by
or at the Cholula products. three and In in foodservice recovering increased with the second and in Turning momentum packaged and growth to as significant momentum three shift and XX% with second also FONA And not currency, our on all executing growth other our contribution the Slide as our also quarter results Americas, on from with away-from-home value-added year’s quarter, basis, a strong technically X-year strategy our we quarter, to made sales our all customers. and regions. gaining dining our significant quarter last continued strong second are to portfolio insulated restaurant we constant X, the sales in the our regions. of customers growth our to Solutions XX% acquisitions double-digits include Flavor beverage our well but during only more In rose double-digit curtailment food the are a second
for the And hard from our for our mentioned in considerably, executing due accelerating, in away-from-home strong snack branded strength. We second the for see seasonings recovery portfolio driving year’s sales continue restaurant Americas to to hot triple-digits with flavor ago. our through grew migration and to seasonings that few Compared on them. base new growth trend continues for consumer be our double-digits in customer products products with global demand snacks the quarter, our customers, customers and products winning our and growing I business strong and the seltzer as core foodservice we business for innovation new to food as while rising second growth well last base increased customer robust. quarter. Demand spicy moments a packaged and growth pipeline iconic significantly beverages flavor flavors is Consumers are new up flavored
rebound customer more year pace to EMEA, significant anticipate last demand foodservice. away-from-home we second at and branded quarter reopen. from more region-wide region from progresses options strengthen was as growth is as in our We shutdowns, dining will year’s this a base cycled substantial. in Our decline slower a is as the our In this skewed channel our
Our particular UK. or quick-service doubled last more strength XXXX, same increased year to from of in with and the from QSRs, second sales than quarter double-digits period the restaurants, in the
flavors and seasonings. of for performance Turning year’s and snack with we growth to the trend base growth, customers, both in spicy food product fueling and in on consumer beverages beverage growth new packaged top and strong sweet had second strong our hot quarter last
QSR in Our the sales as curfews continued partially as of China of from growth in due momentum was closures second outside recovery offer. time in the the Asia-Pacific region limited last quarter countries Australia to and during well from lockdowns, customers, year
well quarter the the China, were last comparison our of to in Across away-from-home offers where all Additionally, limited business. core low recognized second year. double-digit delivered opened Flavor as growth demand quarter and in last a time of part due results to abnormally as second momentum to QSRs due were year, Solutions significant we the regions, strength large
momentum limited time for from promotional and customer and our product QSRs, Cholula, business partially our food includes engagement and growth though, growth the FONA also both Importantly the customers, contributions wins new and base differentiated strong beverage with activity. in packaged by continuing and of driven their offers
our growth know While bolster recovery, will our a in portion returning our confidence our growth our impacted trajectory of second results still be segment. second by half we our pre-pandemic and Flavor to quarter strategies effective robust growth in Solutions
growing In Now, consumer we brief Slide second growth continues FONA, XX% driving starting growth on are Cholula gained since category to Cholula on for outpace update Cholula XXXX. with with how and of X. of our a share, consumption and quarter segment, the
and with optimize and using momentum has placement gained expertise where points, been including are underpenetrated. assortment the distribution new We X-ounce our category channels, expand into size e-commerce, to Cholula bottle shelf and expansion management in
as best-ever Mayo such promotional brand McCormick DoorDash brand scale and We as and as HelloFresh scale McCormick’s promotion the across by de XXXX are well merchandising and with Cinco investments with at marketing leveraging through partnerships taco awareness with including seasoning. brand, increasing Cholula’s double through
Our initiatives results. yielding are
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We in are foodservice. winning
a compared to for XX% performance FONA, to year-to-date year-to-date on category, Beverages moving growth year. in by significant are with FONA, the to we excited fast-growing growth basis. particular Now, double-digit strength last continued nutrition sales drive
with driving are growth footprint. our We global
example, but being are into For order this expanding top the we manufactured FONA the region, our flavors leveraging customer infrastructure, GEODIS first month. for EMEA by
to leveraging across wins to opportunities and new market. and culinary FONA its new to McCormick’s leadership create FONA bid product also fueling opportunities sustainability to of on created briefs core with McCormick FONA, FONA’s and capabilities customers. We on highs growth. Combination strengths new future focus McCormick’s including has has customer our capitalize pipeline potential speed record year-to-date are hit
increased the further They capacity We for proposition have network to and repressed and also identified our longer optimize term has build. to our technologies for continues excitement been and extremely opportunities across positive. drive their our about combined customers. solutions our Customer are customer early reaction assets collaboration expand value to
Cholula on these accelerate growth and our for our FONA to continued strengthen. and with acquisition portfolios drive deliver enthusiasm and value will confidence Our we shareholder plans,
projecting are now X.X% the these range. to incremental acquisitions we be high of to fact, sales end In contribution our the at X% guidance of
like Now, our for XX. to on of for share the trends flavor long-term XX consumer on sales Slides our I demand seen remains would as Global and insights some growth. foundation
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list McCormick summary an Magazine. of our revenue focus overarching being made resulting I With of pleased execution have important in consistently for milestone Fortune XXX Now the McCormick. for successful growth, our companies driven latest by the first, strategy, Fortune share some am on to and growth we comments, industry-leading
of ESG prestigious recognition vitality than We top thing This the the In a to on Diversity efforts. leveraging for take performance and year. a our industry-leading inclusion summary, pride continue right stronger while emphasis with financial are momentum the to included responsibility growth to be and outlook as embracing were proud XX the We ever. performance our and of long-term testament being share. delivering doing Inc. on planet and diversity named people, sustained this list. globally communities May, as well consecutive we fifth our company broader in and we fundamentals, In is our our
and our trends, the year operating our delivering the execution strategy, XXXX. Our strong and breadth our growth of a in bolsters portfolio and alignment with momentum consumer of reach another with long-term robust performance confidence of in combined successful
business reflects operating strong Following base underlying costs considering an strong as acquisitions extraordinary our XXXX, outlook our year growth extraordinary driving in and well our as both XXXX investments. performance sales income significant growth and business transformation COVID-XX even
long-term have they engagement. and sustainably top-tier, passion that are I for efforts success. stronger done their and and recognize around winning ensuring teamwork agility, environment thank for to They flavor past volatile tremendous objectives this with remain dedicated drive we would their for and growth navigating we growth. world year’s employees momentum McCormick and and Our the emerge like a job positioned and our unchanged
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