Revenue during the quarter went up marginally by 1.64 percent to $1,059.90 million from $1,042.80 million in the previous year period. Gross margin for the quarter contracted 48 basis points over the previous year period to 39.81 percent. Total expenses were 86.91 percent of quarterly revenues, up from 84.92 percent for the same period last year. That has resulted in a contraction of 200 basis points in operating margin to 13.09 percent.

Operating income for the quarter was $138.70 million, compared with $157.30 million in the previous year period.

However, the adjusted operating income for the quarter stood at $153.80 million compared to $159.60 million in the prior year period. At the same time, adjusted operating margin contracted 79 basis points in the quarter to 14.51 percent from 15.30 percent in the last year period.

Alan D. Wilson, chairman and chief executive officer, commented, "McCormick's third quarter and year-to-date 2015 financial results reflect the effectiveness of our growth strategies and engagement of our employees. Through the third quarter we have grown sales 6% in constant currency. Both our consumer and industrial businesses are delivering mid-single digit constant currency sales increases, driven by innovation, effective brand marketing support, expanded distribution and customer intimacy. In addition to this strong growth in our base business, we have completed three acquisitions that are excellent additions to our global portfolio of flavors."

For fiscal year 2015, the company expects diluted earnings per share to be in the range of $3.11 to $3.18. The company expects diluted earnings per share to be in the range of $3.47 to $3.54 on adjusted basis.

The company has spent $280.60 million cash to meet investing activities during the nine month period as against cash outgo of $77.20 million in the last year period. It has incurred net capital expenditure of $69.70 million on net basis during the nine month period, down 9.72 percent or $7.50 million from year ago period.

Cash flow from financing activities was $13.30 million for the nine month period as against cash outgo of $165.60 million in the last year period.

Cash and cash equivalents stood at $108.40 million as on Aug. 31, 2015, up 15.57 percent or $14.60 million from $93.80 million on Aug. 31, 2014.

Working capital turns negative
Working capital of McCormick & Company, Inc. has turned negative to $30.10 million on Aug. 31, 2015 from positive $331.20 million on Aug. 31, 2014. Current ratio was at 0.98 as on Aug. 31, 2015, down from 1.31 on Aug. 31, 2014.

Cash conversion cycle (CCC) has decreased to 47 days for the quarter from 92 days for the last year period. Days sales outstanding went down to 18 days for the quarter compared with 39 days for the same period last year.

Days inventory outstanding has decreased to 52 days for the quarter compared with 103 days for the previous year period. At the same time, days payable outstanding went down to 24 days for the quarter from 50 for the same period last year.

Debt moves up
McCormick & Company, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,492 million as on Aug. 31, 2015, up 9.09 percent or $124.30 million from $1,367.70 million on Aug. 31, 2014. Total debt was 33.22 percent of total assets as on Aug. 31, 2015, compared with 30.58 percent on Aug. 31, 2014. Debt to equity ratio was at 0.84 as on Aug. 31, 2015, up from 0.69 as on Aug. 31, 2014. Interest coverage ratio deteriorated to 10.20 for the quarter from 12.69 for the same period last year.