June 27 Reuters McCormick beat market expectations for secondquarter profit and sales on Thursday, led by strong demand for its spices and seasonings in Europe, Middle East and Africa.

Customers grappling with stillhigh costs preferred cooking at home to dining out, improving volumes across the company39;s consumer segment, its biggest unit.

Consumer sales in Europe, Middle East and Africa EMEA business rose 5, driven by 4 increase in volumes in the quarter ended May 31, even as total sales in the segment decreased 0.8.

The Cholula hot sauce maker39;s net sales fell 1 to 1.64 billion but edged past estimates of 1.63 billion, according to LSEG data. The company cited the divestiture of its canning business as a reason for the decline.

Benefits from price hikes taken over the past quarters lifted the company39;s gross profit margin to 37.7, from 37.1 a year earlier.

McCormick reported an adjusted profit of 69 cents per share in the quarter, compared with analysts39; average estimate of 59 cents.

Shares of the Hunt Valley, Marylandbased company, which reiterated its annual forecasts, were marginally up before the bell.

Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Mohammed Safi Shamsi

Source Reuters