McCormick & Company (NYSE:MKC) shares slipped on Thursday after missing on top and bottom lines for the fourth quarter.

The spice and seasoning manufacturer notched $0.73 in adjusted earnings per share, $0.14 below the expectation on the Street. Meanwhile, a 2.3% deceleration in revenue was greater than expected, leaving a $1.69B report short of estimates by $80M. Gross margins contracted 410 basis points on an adjusted basis for the quarter amid persistent supply chain issues and inflationary pressures. Disruptions in China were also blamed for a 2% decline in sales from the prior year quarter.

“Barring the China disruption, we estimate our total company fourth quarter sales would have been comparable to the year ago period, or grown 4% in constant currency, the mid-point of the implied range,” CEO Lawrence E. Kurzius said. “Moreover, our reported fourth quarter sales comparison to the year-ago period included a 2% unfavorable impact attributable to the Kitchen Basics divestiture and the exits of our Consumer business in Russia and a low margin business in India. Accounting for these strategic exits, our underlying sales performance is strong.”

That said, he admitted that operating profits fell short of prior forecasts and management expectations. As such, the company is targeting significant cost-savings measures in coming quarters.

“We are targeting the elimination of $100M of supply chain costs. We are also taking streamlining actions across our entire organization, targeting an incremental $25M of cost savings,” Kurzius declared.

For the full-year, McCormick expects to increase year-on-year sales by 5% to 7%, above the 3.38% consensus. However, an adjusted earnings per share forecast of between $2.56 and $2.61 came in well short of the $2.90 consensus expectation.

McCormick (MKC) shares slid 2.77% in premarket trading on Thursday.

Dig into the details of the results.