Brendan Foley on profitability outlook
From McCormick & Company Inc ($MKC) Q3 2025 Earnings Call · · Castify Earnings Call
“We are absorbing some incremental costs this year which has a near-term impact on our profitability. This approach enables us to maintain our volume momentum and sustain investment in our growth initiatives while still delivering operating profit growth for the year. As a result, we reaffirmed our volume sales growth and expect to deliver at least the midpoint of the range. In addition, we revised our profitability outlook to the low end of the range provided in January.”
On , Brendan Foley, President, CEO & Chairman at McCormick & Company Inc, spoke about profitability outlook during McCormick & Company Inc ($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.