Spice maker McCormick is getting back around $31 million in tariff refunds-and executives say the money is mostly going right back out again, to cover rising costs stemming from the Iran war.

The company said it has been refunded $28 million and expects another $3 million. That helped boost McCormick's gross profit margin in its latest quarter, but inflation is ramping up.

"If you think about our guide, which is mid-single digit cost inflation, we're tracking towards the high end of that number, which is about 6% right now," said McCormick CFO Marcos Gabriel.