WD-40 sees profits rise in Q4

WD-40 turned in a solid fourth quarter as sales rose 5% to $111.6 million.

Sales for fiscal 2020 fell 4% to $408.5 million, however. 

Fourth quarter net sales in the Americas increased 15%, including the United States, Canada, and Latin America, due to higher sales of maintenance products. Sales in the United States climbed 13% as sales in Canada increased 33% and sales in Latin American grew 38%.

Net sales of maintenance products, which are considered the primary growth focus for the WD-40, increased 4% in the fourth quarter. Growth was primarily attributable to increased sales of WD-40 Multi-Use Product and WD-40 BIKE within the Americas and EMEA segments, which were partially offset by lower sales of WD-40 Multi-Use Product in the Asia-Pacific segment.

The San Diego, Calif.-based manufacturer also posted a net income of $19.7 million fourth quarter marking an increase of 129% compared to fourth quarter 2019. 

For the full fiscal year, the company reported a net income of $60.7 million, an increase of 9% from the prior fiscal year. WD-40’s was hit with a tax charge of $8.7 million last year, which was recorded in the fourth quarter 2019.

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The Bottom Line: Profits at WD-40 surge 129% to $19.7 million as profits for the full year grow 9% to $60.7 million.

What the CEO said:  As a global business that sells products in more than 176 countries and territories around the world, each of our markets were impacted differently by the COVID-19 pandemic and therefore our sales results varied greatly between geographies,” said Garry Ridge, chairman and CEO of WD-49. “In geographies where retail operations remained open and where we were able to leverage our strong digital presence, we saw strong sales growth. However, in markets with strict movement restrictions in place or less developed e-commerce adoption, our sales were challenged." 

Company info: WD-40’s full fourth quarter and year-end 2020 financial report is available here.