Revenue during the quarter grew 4.80 percent to $1,114.30 million from $1,063.30 million in the previous year period. Gross margin for the quarter contracted 80 basis points over the previous year period to 39.90 percent. Total expenses were 88.10 percent of quarterly revenues, down from 88.24 percent for the same period last year. This has led to an improvement of 14 basis points in operating margin to 11.90 percent.

Operating income for the quarter was $132.60 million, compared with $125 million in the previous year period.

However, the adjusted operating income for the quarter stood at $137.30 million compared to $128.90 million in the prior year period. At the same time, adjusted operating margin improved 20 basis points in the quarter to 12.32 percent from 12.12 percent in the last year period.

Lawrence E. Kurzius, chairman, president and chief executive officer, stated, "Our strong second quarter financial results reflect the effectiveness of our sales and profit growth strategies driven by the engagement of our employees around the world. Both our consumer and industrial segments contributed to our constant currency sales growth of 7%. Our consumer segment delivered base and new product sales growth from the year ago period, with solid performance in the Americas and strong momentum in China, partially offset by the impact of challenging environments in Europe, Middle East and Africa (EMEA). Our industrial business delivered excellent sales growth driven by new products, expanded distribution, and customer intimacy. In addition to our strong base business and new product growth, the acquisitions of Giotti and Gourmet Garden contributed to higher sales as valuable additions to our global portfolio of flavors. Through the second quarter, we have grown sales 6% in constant currency within our 2017 constant currency sales growth objective of 5 to 7%."

For fiscal year 2017, McCormick & Company, Incorporated projects revenue to grow in the range of 4 percent to 6 percent. The company projects operating income to grow in the range of 8 percent to 10 percent. It company forecasts diluted earnings per share to be in the range of $3.94 to $4.02. The company forecasts diluted earnings per share to be in the range of $4.05 to $4.13 on adjusted basis.

The company has spent $189.80 million cash to meet investing activities during the first six months as against cash outgo of $171.40 million in the last year period. It has incurred net capital expenditure of $65.80 million on net basis during the first six months, up 23.45 percent or $12.50 million from year ago period.

Cash flow from financing activities was $24.60 million for the first six months as against cash outgo of $16.20 million in the last year period.

Cash and cash equivalents stood at $130 million as on May 31, 2017, down 1.14 percent or $1.50 million from $131.50 million on May 31, 2016.

Debt moves up
McCormick & Company, Incorporated has witnessed an increase in total debt over the last one year. It stood at $1,711.10 million as on May 31, 2017, up 9.15 percent or $143.40 million from $1,567.70 million on May 31, 2016. Interest coverage ratio deteriorated to 8.90 for the quarter from 9.12 for the same period last year.