McCormick has beaten quarterly sales and profit expectations as higher prices, stronger foodservice demand and continued at-home eating helped offset rising costs.

The Schwartz and Cholula owner posted second-quarter sales of $1.94bn (£1.42bn) for the period ended 31 May, up 16.7 per cent year on year and ahead of analyst forecasts of $1.91bn.

Adjusted earnings came in at 80 cents per share, beating Wall Street expectations of 69 cents.

The spice and condiments giant, which also owns French’s, Frank’s RedHot and Old Bay, said organic sales rose 1.7 per cent during the quarter, helped by pricing and momentum across its flavour solutions division.

However, overall volumes slipped 0.5 per cent, while prices rose 2.2 per cent, underlining the continued pressure on grocery shoppers and food manufacturers.

McCormick said sales were supported by increased eat-at-home trends, higher pricing and the contribution from its McCormick de Mexico acquisition.

Adjusted gross profit rose 25 per cent to $778.2m, while adjusted operating income jumped 30 per cent to $336.4m.

The company said tariff refunds reduced cost of goods sold by $28m during the quarter, helping to offset higher commodity costs and wider inflationary pressures.

McCormick chairman, president and chief executive Brendan Foley said the business had delivered a resilient performance in a “dynamic operating environment”.

He said organic growth had been driven by stronger momentum in Flavor Solutions, with gains across flavours and branded foodservice customers.

McCormick reaffirmed its full-year outlook, with sales expected to rise between 13 per cent and 17 per cent and adjusted earnings per share forecast at $3.05 to $3.13.

The company said its guidance reflected uncertainty around consumer demand, global trade policy and the conflict in the Middle East.

The update is McCormick’s first set of results since announcing plans to combine with Unilever’s food business, in a deal Reuters reported would be worth around $45bn.

McCormick said integration planning was progressing and that the deal would create a larger global flavour-focused food group.

Shares rose around tree per cent in early trading following the results.

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