Cholula sauce maker McCormick beats quarterly sales estimates on steady demand

March 31 (Reuters) – McCormick, which is set to merge with Unilever’s 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 up1.4% in premarket trading.    * The company will merge with Unilever’s food unit followingthe British company’s decision to separate the business, in acash-and-stock deal, valuing it at about $44.8 billion, thecompanies said. * 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)