The company anticipates net sales to range from a decline of 2% to 0% from 2023 net sales, including a 1% unfavorable impact of foreign currency rates. This includes the impact of previously implemented pricing actions and the divestiture of the Giotti canning business.

McCormick projects an increase in operating income of 8% to 10%, which includes a 1% unfavorable impact from foreign currency rates, over the 2023 level. This projection includes the effects of an anticipated increase in gross profit margin as well as SG&A cost savings from CCI and GOE programs.

The company is fueling investment in growth with cost savings from its CCI program and GOE program. Both programs delivered cost savings in 2023 and are expected to deliver additional savings in 2024.

Selling, general, and administrative (SG&A) expenses increased by $25.5 million, driven primarily by higher advertising and promotional spend, increased selling and market costs, and a higher investment in research and development. SG&A as a percentage of net sales increased by 110 basis points.

The industry continues to be impacted by commodity cost inflation, labor cost inflation, and other global macro-economic conditions. While input cost inflation is moderating, inflationary pressures are expected to persist into fiscal 2024.

The company continues to closely monitor the credit worthiness of customers and counterparties, as some are highly leveraged. The company believes that its allowance for doubtful accounts properly recognizes trade receivables at realizable value.

Consumer segment sales increased by 1.3%, but unfavorable volume and product mix decreased sales by 2.2%. This was partially due to decisions to discontinue certain low-margin businesses, contributing 0.8% to the unfavorable impact.

Flavor solutions segment sales increased by 3.8%, driven by pricing actions and favorable volume/product mix. This segment continues to show positive momentum.

The company recorded $4.2 million of special charges, consisting principally of $2.8 million associated with the Global Operating Effectiveness (GOE) program and $1.4 million associated with the transition of a manufacturing facility in EMEA.

As of February 29, 2024, $501 million remained of the $600 million share repurchase program authorized in November 2019. The timing and amount of repurchases are determined by management based on market conditions.

The company increased dividends paid to $112.7 million, or $0.42 per share, compared to $104.6 million, or $0.39 per share, in the same period last year.

The company's reported values of assets and liabilities are significantly affected by fluctuations in foreign exchange rates between periods. The company presents growth on a constant currency basis to exclude these effects.