By Holden Wilen
September 30, 2021
The following is an excerpt from the original Baltimore Business Journal article.
Shares of McCormick & Co. Inc. fell Sept. 30 after the spice maker lowered its earnings outlook and said it expects to continue facing pressure into next year due to rising labor, transport and supply-chain costs. Hunt Valley-based McCormick beat Wall Street expectations in the third quarter but all analysts wanted to talk about during a conference call was inflation and pricing. The maker of Old Bay, French’s mustard and Frank’s RedHot Sauce is facing a number of issues in its supply chain including pricier raw materials packaging, more expensive ocean freight and a shortage of truck drivers. Yet, executives say the issues are not unique to McCormick and they remain confident in the company’s long-term growth outlook.
“We are experiencing the highest inflationary period of the last decade, or even two,” CEO Lawrence Kurzius said. “We, along with our peers and customers, are also facing additional pressure on our supply chain due to strained transportation capacity and labor shortages for distribution. These pressures not only impact cost, but also negatively impact sales.”
Kurzius declined to disclose how much the supply chain issues affected sales, but said the impact was “material.”
Source: Baltimore Business Journal