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.
To save your world from boring food!
These five pillars are the foundation of our business and drive our success in markets around the world.
Around the globe, home cooks and professional chefs alike turn to McCormick for flavor and culinary inspi- ration. We have substantial and sustained investment to support innovation with product development centers in 14 countries. Over the past five years, we have increased brand marketing support by 44% to better connect with consumers.
Globally, more than 10,000 McCormick employees are engaged in McCormick’s participative culture and driving our success.
Product quality and transparency are increasingly import- ant to today’s consumer. We are building on our legacy of corporate social responsibility and have set new goals to achieve by 2019. McCormick ranked 27th among U.S. companies in the 2015 Newsweek Green Ranking.
Consumer interest in wellness continues to grow and we are working to help them achieve a healthier diet. We are pleased that the new 2015 Dietary Guidelines for Ameri- cans recommends using spices and herbs to help Ameri- cans reduce sodium in their diets.
In the past 10 years, we grew sales 66%, increased cash flow from operations 74% and delivered 13% total annual shareholder return.
"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.
McCormick has increased its dividend in each of the past 30 years. We have paid a dividend for 90 consecutive years.
Total shareholder return has risen at a double- digit rate for the past 1-, 5-, 10- and 20-year periods.
"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."
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|
|Gross profit margin||40.4%||40.8%|
|Operating income margin||12.8%||14.2%|
|Earnings per share—diluted||3.11||3.34||(6.9)%|
|Cash flow from operations||590.0||503.6||17.2%|
|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.
|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."
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.
Since 2010, we grew sales 32% and adjusted operating income 13%.
140 Consumers purchase our brands in more than 140 countries and territories