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This statistic highlights McCormick & Co’s Revenue by Segment, split between consumer and flavor solutions, reported on a quarterly basis from 2016 Q1 onwards.
McCormick & Co’s Revenue by Segment
McCormick & Co’s total revenue stood at $1,549.4 million in Q3 2021. On a year-on-year basis, the company’s revenue increased by 8.32%, from $1,430.3 million in Q3 2020 to $1,549.4 million in Q3 2021. However, when compared to Q2 2021, the revenue has actually declined. It fell from $1,556.7 million in Q2 2021 to $1,549.4 million in Q3 2021, making a decline of 0.46% on a quarter-on-quarter basis.
McCormick & Co’s revenue can be bifurcated into the following segments:
|Revenue by Segment||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
(All figures in millions, except percentages)
McCormick & Co’s brands reach consumers in roughly 160 countries and territories from locations all around the world. Spices, herbs, and seasonings account for over half of the company’s consumer segment revenues. Products are sold to customers under a variety of brands through a variety of retail channels, such as supermarkets, mass merchandise, warehouse clubs, discount and drug shops, and e-commerce. In this competitive environment, McCormick & Co is leading with innovation and brand marketing, as well as using analytical tools to help clients maximize the profitability of their spice and seasoning sales while also trying to boost the company’s sales and profits.
The consumer segment of the company contributes 59.5% to the total revenue in Q3 2021, amounting to $921.9 million. The revenue generated from this segment increased by 1.20% on a year-on-year basis, from $910.9 million in Q3 2020 to $921.9 million in Q3 2021. This is due to government-mandated steps implemented in 2020 to combat the spread of COVID-19, which led to a shift in consumer behaviour toward meal preparation at home. On the other hand, the revenue generated from this segment declined from $945.2 million in Q2 2021 to $$921.9 million, which is a 2.46% decline on a quarterly basis. This is due to the extremely high demand that prevailed in the early phases of the pandemic has now subsided but remains high.
McCormick & Co’s flavor solutions segment offers a diverse range of goods to global food manufacturers and food-service customers. With the exception of the company’s activities in China and India, where food-service sales are managed and reported under the consumer sector, food-service clients are supplied with branded, packaged items both directly and indirectly through distributors. McCormick & Co. provides bespoke taste solutions to food producers and food-service customers, and many of these customer ties have lasted decades. Seasoning blends, spices and herbs, condiments, coating systems, and compound flavors are among the company’s flavor solutions, which are among the most comprehensive in the market. McCormick & Co’s long-standing client relationships are proof of their effectiveness in establishing customer intimacy, in addition to a wide selection of flavor solutions. Customers benefit from expertise in sensory testing, culinary research, food safety, and flavor application, among other areas.
The flavor solutions segment contributes 40.5% to the company’s total revenue in Q3 2021, amounting to $627.5 million. Revenue generated from this segment increased by 20.8% on a yearly basis, from $519.4 million in Q3 2020 to $627.5 million in Q3 2021. There was also an increment of 2.62% on a quarter-on-quarter basis, when compared to Q2 2021, where the revenue generated was $611.5 million. The increase in sales in the third quarter of 2021 came from all regions. The contribution to the revenue mix also increased from 36.31% of the total revenue in Q3 2020 to 40.50% in Q3 2021.
Founded in 1889 by Willoughby M. McCormick in Baltimore, Maryland, United States, McCormick & Co is the world’s leading flavor company. Spices, seasoning mixes, condiments, and other tasty goods are manufactured, marketed, and distributed to the whole food sector, including retailers, food manufacturers, and foodservice businesses. McCormick & Co is also a partner in a number of joint ventures that manufacture and sell savory products, the most notable of which is McCormick de Mexico. North America, Europe, and China are where the company’s key sales, distribution, and production facilities are located. Australia, India, Central America, Thailand, and South Africa have more facilities. McCormick is the world’s largest manufacturer of spices and allied food products in terms of sales. In the third quarter of 2018, the company relocated its headquarters from Sparks to Hunt Valley, Maryland. The common stock of McCormick & Co is publicly traded on the NYSE under the ticker MKC.
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