McCormick Sees Demand Fall in China, and Shares Sink

McCormick & Company sales were less than expected as demand in China slowed. The company noted the results met expectations except in the Asia-Pacific consumer segment, which was negatively impacted by demand in China. "The pace of China's economic recovery has been slower than anticipated," the company said. McCormick said the lag in Chinese demand resulted in an overall 2% drop in sales volume. CEO Brendan Foley said the company benefited from "Effective price realizations" and cost-saving measures, which helped raise gross margin by 150 basis points from last year. McCormick has been steadily increasing its prices to try to offset rising inflation and other expenses. It reiterated its sales outlook of growth of 5% to 7%. McCormick & Company shares fell to their lowest level since the start of the COVID-19 pandemic in 2020.