Mccormick Annual Report

Food brings people together—and people everywhere rely on McCormick for the best products and purest fla- vors to make great- tasting meals. In markets around the world, demand for real food and bold flavors is rising. Together with McCormick’s high performance culture, this set the stage for our strong performance in 2015.

Our Mission

To save your world from boring food!

The five pillars

These five pillars are the foundation of our business and drive our success in markets around the world.

"Consumers around the world are exploring new flavors— and also becoming increasingly interested in the source and quality of their food"


Our innovation spans eating occasions from snacking to special meals and is b ased on consumer insights.

Since 2010, we grew sales at a compound annual growth rate of 5%.

Around the world, 8% of our 2015 sales came from new products launched in the past three years.

In 2015, we stepped up our CCI program and organization and streamlining actions, achieving $98 million in cost savings, a 42% increase from the previous record.

Dividents Declared

  • ’11------ $1.15
  • ’12--------$1.27
  • ’13------ $1.39
  • ’14------$1.51
  • ’15---- $1.63

McCormick has increased its dividend in each of the past 30 years. We have paid a dividend for 90 consecutive years.

Total annual shareholder return

  • 1-YR -----18%
  • 5-YR --------17%
  • 10-YR------13%
  • 20-YR--------13%

Total shareholder return has risen at a double- digit rate for the past 1-, 5-, 10- and 20-year periods.

Net sales by segments and region

  • Americas (Consumer Segment) 40
  • EMEA (Consumer Segment) 13
  • Asia/Pacific (Consumer Segment) 8
  • Americas (Industrial Segment) 26
  • EMEA (Industrial Segment) 8
  • Asia/Pacific (Industrial Segment) 5
"For the past decade we have had a balanced use of cash, returning 46% to shareholders throgh dividers and share repurchases, net of options exercise proceeds."

Uses of cash flow from operations

  • Deviders 30
  • Net share repurchases 16
  • Aquisitions 34
  • Capital expenditure 20

Our Vision


McCormick brings the joy of flavor to every day.


In 2015, we reached $590 million of cash flow and returned $351 million to our shareholders through dividends and share repurchases.

For the year ended November 30 (millions except per share data) 2015 2014 %change
Net sales $4,296.3 $4,243.2 1.3%
Gross profit 1,737.33 1,730.2 0.4%
Gross profit margin 40.4% 40.8%
Operating income 548.4 603.0 (9.1)%
Operating income margin 12.8% 14.2%
Net income 401.6 437.9 (8.3)%
Earnings per share—diluted 3.11 3.34 (6.9)%
Cash flow from operations 590.0 503.6 17.2%
Dividends paid 204.9 192.4 6.5%
Dividends paid per share 1.60 1.48 8.1%

We are providing below certain non-GAAP financial results excluding items affecting comparability. The details of these adjustments are provided in the Non-GAAP Financial Measures of the Management’s Discussion & Analysis on pages 34 and 35.

2015 2014 %change
Adjusted operating income $613.9 $ 608.2 0.9%
Adjusted operating income margin 14.3% 14.3%
Adjusted net income 449.5 441.6 1.8%
Adjusted earnings per share—diluted 3.48 3.37 3.3%
"Our innovation spans eating occasions from snacking to special meals and is b ased on consumer insights."

Segments at a glance

We sell leading brands of spices, seasonings and other flavor products to a variety of retail outlets that include grocery, mass merchandise, discount stores and e-commerce.

Cost Savings from CCI and Organization and Streamlining Actions

Since 2010, we grew sales 32% and adjusted operating income 13%.

140 Consumers purchase our brands in more than 140 countries and territories