June 25 (Reuters) - Cholula hot sauce maker McCormick beat Wall Street estimates for second-quarter sales and profit on Thursday, driven by strong demand for its spices and seasonings as consumers cook more at home amid economic uncertainty.
Shares of the Hunt Valley, Maryland-based company were up about 3% in premarket trading.
Persistent inflation and the economic fallout from U.S. President Donald Trump's import tariffs and the Iran war have forced consumers to curb discretionary spending, including
dining out, driving demand for companies like McCormick.
McCormick is also pushing ahead with its planned merger with Unilever's food business in a roughly $45 billion deal that would significantly expand its presence beyond spices into condiments and meal solutions.
The Stubb's barbecue sauce maker reported a quarterly revenue of $1.94 billion, compared with estimates of $1.91 billion, according to data compiled by LSEG.
The company reported an adjusted profit of 80 cents per share for the quarter, beating analysts' average estimate of 69 cents per share.
McCormick had faced pressure from steep tariffs as it sources its most significant raw materials, including pepper and various spices and herbs, from outside the U.S.
The company said tariff refunds reduced the costs of goods sold by $28 million in the quarter. However, it expects those gains to be offset by increased costs, including those related to the Middle East conflict, and continued investments into its business.
The company reaffirmed its annual sales growth target of between 13% and 17% and annual adjusted profit per share in the range of $3.05 to $3.13.
McCormick said its forecast reflects an uncertain demand environment, the Middle East conflict and benefits from increasing its stake in its Mexico joint venture.
Packaged foods peer Campbell's had also reaffirmed its annual forecasts earlier this month.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
