WD-40 sees Q1 sales rise
WD-40 Company (WDFC) announced a rise in net sales for its first quarter of fiscal year 2022 ending Nov. 30, 2021, noting growth in maintenance products including its Multi-Use product.
However, Garry Ridge, WD-40 chairman and CEO, pointed out continuing volatility ahead, “This is a different game that we’re playing, and we are using a different playbook. We expect the operating environment to remain volatile,” said Ridge in his earnings call Thursday.
The San Diego, Calif.-based company reported total net sales for the first fiscal quarter were $134.7 million, an increase of 8% compared to $124.6 million in the prior year fiscal quarter. WD-40 said net income for the first quarter was $18.6 million, a decrease of 21% from the prior year fiscal quarter.
WD-40 said net sales by segment as a percent of total net sales for the first quarter were as follows: for the Americas, 42%; for EMEA, 43%; for Asia-Pacific, 15%.
Net sales in the Americas increased 4% to $53 million in the first quarter due primarily to higher sales of maintenance products in Latin America, which increased 42% compared to the prior year fiscal quarter.
Higher sales of maintenance products in Latin America, said the company, were primarily driven by strong sales of WD-40 Multi-Use product in Mexico and in Latin America distributor markets due to the timing of customer orders, successful promotional programs, and increased product availability.
The Bottom Line: WD-40 Company had net sales increases of 8% to nearly $135 million, driven primarily by maintenance products, particularly its Multi-Use product.
What the CEO said: “Our maintenance products delivered solid sales increases in the first quarter including 14% growth of WD-40 Multi-Use product,” said Garry Ridge, WD-40 chairman and CEO.
“We are pleased with our topline results in the quarter, but we are facing a volatile and challenging environment that is deteriorating our gross margin and causing disruptions to our supply chain,” said Ridge.
The CEO also indicated what he called “Must-Win” battles for WD-40 this year, which included geographic expansion in emerging markets such as India and China, among others.
Company info: Click HERE to read the full first fiscal quarter financial report from WD-40 Company.