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March
31 (Reuters) - McCormick, which is in advanced talks with Unilever to acquire its food business, beat first-quarter sales estimates on Tuesday, helped by resilient demand for its seasonings and condiments.
Value-conscious consumers are increasingly opting to cook at home rather than dining out, driving demand for McCormick's spices and seasonings.
* Shares of the Hunt Valley, Maryland-based company were up4% in premarket trading. * The company is in advanced talks with Unilever about apotential deal for the British company's food business, whichcould create a $60 billion company. * McCormick has benefited from its spending on brandmarketing as well as technology and innovation investments. * The spice maker has raised prices to boost its margins tooffset higher-than-expected tariff costs, with half of theincremental tariffs on McCormick's products still in place, thecompany said last quarter. * The company sources its most significant raw materials,including pepper and various spices and herbs, from countriesoutside the U.S. * It reported first-quarter revenue of $1.87 billion,compared with estimates of $1.79 billion, according to datacompiled by LSEG. * Total volumes were down 0.7%, while prices were up 1.9%for the three months ended February 28. * Quarterly adjusted profit of 66 cents per share beatestimates of 59 cents. * McCormick, like peer General Mills, also reaffirmed itsannual targets.(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Shinjini Ganguli)
