McCormick posts strong Q2 sales growth but organic growth remains weak, shares underperform.

McCormick reported a 16.7% increase in net sales for Q2, driven mainly by acquisitions and favorable currency effects, while organic growth stayed weak. The company's gross margin improved by 270 basis points to 40.2%, supported by acquisitions, pricing strategies, product mix, and cost savings from its CCI program. Despite these operational gains and a solid dividend, McCormick's long-term growth outlook appears limited, with shares underperforming and no clear signs of a turnaround. Investors remain cautious, watching the potential Unilever merger for future catalysts.