Brendan Foley on tariff exposure
From McCormick & Company Inc ($MKC) Q3 2025 Earnings Call · · Castify Earnings Call
“Our current gross tariff costs for 2025 are now expected to be approximately $70 million compared to the $50 million we provided on our last call. Our total gross annualized tariff exposure is now approximately $140 million compared to $90 million we provided previously. For 2025, we continue to expect to offset most of the tariff impact, but it's worth noting that not all of our mitigation efforts are permanent, and this will need to be addressed next year.”
On , Brendan Foley, President, CEO & Chairman at McCormick & Company Inc, spoke about tariff exposure during McCormick & Company Inc ($MKC) Q3 2025 Earnings Call on Castify Earnings Call.
About Brendan Foley
Brendan Foley, chairman, president, and CEO of McCormick & Company, reported that the company delivered volume-led organic growth and share gains in fiscal 2025, which he attributed to sustained investment in brands, expanded distribution, and innovation. Foley noted that the company’s total gross annualized tariff exposure increased over the course of the year, reaching approximately $140 million by the third quarter before declining to about $70 million by the fourth quarter. He stated that McCormick planned to offset tariff costs through productivity savings, alternative sourcing, and targeted pricing, and that the company expected the incremental year-over-year cost of tariffs to be approximately $50 million in 2026. Foley also announced that the board authorized a 7% increase in the quarterly dividend, marking the 102nd year of continuous dividend payments. In April 2026, Foley discussed a deal to acquire Unilever’s food unit, describing it as a combination focused on growth and value creation that would create a preeminent flavor-focused food company. He said the deal would be accretive in the first year across sales, adjusted operating margin, and adjusted EPS, and noted that Unilever would be about two-thirds of the combined company while McCormick would be about one-third. Foley emphasized that McCormick differentiates itself from private-label competitors through product quality and a sourcing strategy that works with over 54,000 smallholder farmers. He also acknowledged that rising oil prices were affecting packaging costs and that the company was working to offset those input costs.