McCormick & Company reported third-quarter 2026 net sales up 17.4% and said integration planning for its combination with Unilever's food division remains on track.
Adjusted earnings came in at $0.86 per share.
Adjusted operating income rose 22%, while reported net income fell 57% on acquisition-related charges. The company reaffirmed its 2026 outlook.
Higher prices helped offset softer volumes during the quarter. Volumes declined in the Consumer Americas segment.
CEO Brendan Foley pointed to the resilience of the flavor-focused model in what he described as dynamic conditions.
Unilever will own most of the combined company
Under the terms, Unilever receives $15.7B in cash and 65% of the equity in the combined company. McCormick shareholders retain 35%.
The companies target $600M in annual cost savings, while the combination gives McCormick better access to high-growth markets across Asia and Latin America.
The food division includes Hellmann's and other brands Unilever is shedding as it pivots toward beauty and wellness. Completion is slated for mid-2027.
The structure is unusual for a transaction carrying McCormick's name. Unilever will own 65% of the combined company, while McCormick's name and leadership stay in place.
That puts the $600M savings target firmly in focus as integration planning moves ahead.
For McCormick holders, the near-term picture is a spice business still raising prices as volumes soften, with a far larger packaged-foods portfolio set to join it next year.
The acquisition charges already weighing on reported profit also show that combining the businesses comes with costs before the targeted savings arrive.
The bigger question is what McCormick looks like once Unilever Foods is inside it. By mid-2027, today's spice company is set to have a much broader portfolio, a new majority owner, and a $600M savings target to deliver.
