McCormick & Company: Will The Positive Volume Growth In Flavor Solutions Last Long Term?

McCormick’s first quarter results demonstrated that its investments to improve volume trends and drive profitable growth are paying off. In Q1, the company registered a 2% sales growth in constant currency, reflecting a 3% contribution from pricing, partially offset by a 1% decline in volume and product mix. This decline was triggered by the pruning of low-margin business and a canning business divestiture. Notably, compared to the prior quarter, volume trends improved in both the Consumer and Flavor Solution segments which points to progress.