Spice is right for McCormick

- Last updated on GMT

Related tags: Generally accepted accounting principles

Profits in the fourth quarter lept 9 per cent for US spice company
McCormick, helped by cost-cuts, new acquisitions and improved
supply chain efficiencies.

Higher sales linked to the purchase of Zatarain's, a leading US brand of New Orleans-style products, and Europe-based condiment business Uniqsauces, boosted the figures for the year by 6 per cent.

"Favourable exchange rates contributed 4 per cent, and higher sales, particularly in the US consumer business, added 2 per cent to the rise in income,"​ said the company in a statement yesterday.

The Maryland-based firm said net income rose to $84.4 million, or 59 cents per diluted share, from $77.2 million, or 54 cents per share, a year earlier.

"Due to our strategic purchase of vanilla beans, we did not reach our objective to generate more than $100 million in cash from operations, after net capital expenditures and dividends,"​ added the company that made a 'strategic purchase' of vanilla beans in 2003, a period of short supply for the raw material.

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