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McCormick plans to increase its sales from 3 to 5% in 2022

The American food company McCormick & Company projects to increase its net sales by 3 to 5% in 2022, at a year-on-year rate.

Their projections include an estimated 1% unfavorable impact from exchange rates, or between 4 and 6% in constant currency.

McCormick is a world leader in flavor. Manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products for the entire food industry: retailers, food manufacturers and food service companies.

He is also a partner in several joint ventures involved in the manufacture and sale of tasty products, the most important of which is McCormick de México.

While McCormick’s primary sales, distribution and production facilities are located in North America, Europe and China, additional facilities are located in Australia, Central America, Thailand and South Africa.

Sales

Anticipated sales growth for 2022 considers the impact of pricing actions, including those taken in 2021, to partially offset cost increases.

The company expects the price impact to be a major factor in its sales growth.

McCormick also expects volume and product mix to be affected by price elasticities, albeit at a lower level than the company has historically experienced. We anticipate that our volume and product mix will also be affected by the exit of a lower margin product line in late 2021.

Another of the company’s estimates is that its gross profit margin for 2022 will range between an increase of 20 basis points and a decrease of 30 basis points from our gross profit margin of 39.5% in 2021.

In 2022, the company expects an increase in operating profit of 13 to 15%, including an estimated 1% unfavorable impact of foreign exchange rates, over the 2021 level.

Based on market conditions in each company segment, its consumer segment has a higher overall profit margin than its flavor solutions segment.

In 2021, the consumer segment contributed approximately 62% of consolidated net sales and 75% of consolidated operating income, and consequently the flavor solutions segment contributed 38% of consolidated net sales and 25% of operating income. consolidated.

 

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