McCormick has reported financial results for the first quarter ended February 28, 2019 and reaffirmed its financial outlook for fiscal year 2019.

Sales rose 1% in the first quarter from the year-ago period. In constant currency, the company grew sales 4%, with strong results in both the consumer and flavour solutions segments.

Operating income was $197 million in the first quarter compared to $181 million in the year-ago period. Adjusted operating income was $199 million, a 4% increase from $192 million in the first quarter of 2018, and a 6% increase in constant currency.

Lawrence E. Kurzius, Chairman, President and CEO, said: "McCormicks strong first quarter results were a great start to the year reflecting the successful execution of our strategies. We delivered against our plans for both sales growth and profit realization and are excited about our momentum. Our fundamentals are very strong and we are confident the initiatives we have underway in 2019 position us to continue on our growth trajectory.”

"Both our consumer and flavour solutions segments contributed to our constant currency sales growth of 4%. Growth in both segments was entirely organic, driven by higher volume and product mix on base business and new products as we had no acquisition impact in the quarter. Consumer segment sales grew in each of our three regions driven by new products, expanded distribution as well as strong marketing programs and promotional activities. Our flavour solutions segment had excellent sales growth driven by increased base business and new product growth in the Americas and EMEA regions. In this segment, we continue to win with our customers through new products, expanded distribution and promotional activities.

"McCormick is a global leader in flavour with a broad and advantaged global portfolio which continues to grow and position us to fully meet the demand for flavour around the world. We are continuing to capitalize on the global and growing consumer interests in healthy, flavourful eating, the source and quality of ingredients, and sustainable practices. We deliver flavour across all markets and through all channels, while responding readily to changes in the fast-evolving food and beverage industry with new ideas, innovation and purpose. Our focus on profitable growth and strengthening our organization is the foundation of our future. In 2019, we expect to deliver another strong year while continuing to make targeted investments and fuel our growth to build the McCormick of the future.”

Flavour solutions segment sales increased 3% from the first quarter of 2018. In constant currency, sales grew 6% driven by the Americas and EMEA regions.

Flavour solutions sales in the Americas grew 6% from the year-ago period and in constant currency, sales grew 7%. This growth was led by the increased sales to quick service restaurants and continued flavors and seasonings momentum. New products, expanded distribution and customer promotional activities all contributed to the increase.

First quarter flavour solutions sales in EMEA were flat and in constant currency rose 9%. The growth was broad based and driven by higher volume and product mix attributable to both the base business and new products.

Flavour solutions sales in the Asia/Pacific region decreased 5% in the first quarter of 2019 and in constant currency was flat. The decline was driven by the timing of customer promotional activities.

Flavour solutions segment operating income, excluding special charges, transaction and integration expenses, rose 4% to $64 million for the first quarter of 2019 compared to $62 million in the year-ago period. In constant currency, flavour solutions operating income increased 7%. The favourable impact of higher sales and CCI-led cost savings drove the year over year growth.