HUNT VALLEY, Md. - McCormick (NYSE:MKC) & Company, Incorporated (NYSE: MKC), known for its spices and flavors, announced today the appointment of Marcos Gabriel as its new Executive Vice President and Chief Financial Officer, effective December 1, 2024. The current CFO, Mike Smith, will transition to an Executive Vice President role until his retirement on February 28, 2025.
Gabriel, who joined McCormick in 2017 and has held key leadership roles including CFO for the Americas and Chief Transformation Officer, brings over twenty-five years of experience in the Consumer Products industry. His previous experience spans across notable companies like Avon, Unilever (LON:ULVR), and Eli Lilly (NYSE:LLY) in various international leadership roles. Gabriel is also a board member of the National Life Group.
During his tenure as CFO since 2016, Mike Smith has been credited with driving significant growth for McCormick, including a sales increase of over 50%. Under his financial leadership, the company has seen the successful acquisition of brands like Frank's RedHot, French's, and Cholula, as well as the FONA flavor business. Smith's strategic initiatives have been pivotal in McCormick's long-term growth, with President and CEO Brendan M. Foley commending his "transformational leadership" and contributions to the company's finance organization.
In his upcoming role, Gabriel will oversee McCormick's global finance organization and global business services team, reporting directly to President and CEO Brendan M. Foley. Foley praised Gabriel's strategic vision and expertise, which are expected to be instrumental in advancing the company's leadership and market differentiation.
McCormick, established in 1889, has grown to achieve over $6.5 billion in annual sales, operating in 150 countries and territories. The company's portfolio includes a variety of brands that cater to both the consumer market and foodservice industry. McCormick operates through two segments, Consumer and Flavor Solutions, which together aim to meet the growing consumer demand for flavorful food and beverages.
This leadership transition is based on a press release statement from McCormick & Company. Gabriel's promotion reflects the company's focus on continuity and strategic growth as it prepares for Smith's retirement.
In other recent news, McCormick & Company has seen several significant adjustments from financial analysts. TD Cowen reduced its price target for the company to $73.00, while also slightly lowering its earnings per share (EPS) estimate.
Despite these changes, TD Cowen maintains confidence in McCormick's ability to reach the upper end of its EPS guidance. JPMorgan (NYSE:JPM) also adjusted its price target for McCormick, reducing it to $60.00 due to challenges in the company's Flavor Solutions segment.
In contrast, Citi upgraded McCormick's shares from Sell to Neutral, anticipating that the company will surpass consensus estimates in its second quarter earnings report for fiscal year 2024. Argus has also shifted its rating from Hold to Buy, reflecting a positive outlook on McCormick's potential to improve sales volumes.
In other recent developments, McCormick announced the appointment of Valarie Sheppard, a retired Executive Vice President, Controller, and Treasurer of Procter & Gamble, to its Board of Directors. This addition aligns with McCormick's strategic direction and governance practices. These are recent developments that provide investors with an insight into the company's current activities and future prospects.
InvestingPro Insights
As McCormick & Company (NYSE: MKC) welcomes Marcos Gabriel into the role of Executive Vice President and Chief Financial Officer, the company's financial health and market position remain a focal point for investors. With a market capitalization of $18.01 billion, McCormick showcases its stature in the industry. The company's commitment to shareholder returns is evident, as it has not only maintained but also consistently raised its dividend payouts for an impressive 54 consecutive years—an InvestingPro Tip that underscores its financial stability and dedication to investors.
InvestingPro data indicates a P/E ratio of 25.32, reflecting investor sentiment and market expectations of future earnings. While this ratio sits on the higher side relative to near-term earnings growth, it's noteworthy that analysts predict McCormick will remain profitable this year, with a solid track record over the last twelve months. Furthermore, the company's revenue growth over the last twelve months as of Q1 2024 stands at 4.78%, showcasing a steady upward trajectory in its financial performance.
For those considering diving deeper into McCormick's financials and future prospects, InvestingPro offers additional insights and metrics. There are 6 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/MKC. To enhance your research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting you access to a wealth of data and expert analysis to inform your investment decisions.
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