WD-40 Company (WDFC) Q3 Earnings Top, Maintenance Sales Rise 10%
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Shares of WD-40 Company WDFC rose 4% in the trading session on Jul 11, following the company’s better-than-expected third-quarter fiscal 2024 results.
WDFC has been witnessing robust growth with record sales fueled by strong volume growth across all three trade regions. Total maintenance product sales saw remarkable growth aligning perfectly with the company’s established long-term growth targets. Additionally, the company made a successful entry in the latest direct market of Brazil.
Q3 Details
WD-40, a global marketing organization, posted earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.27 per share. This performance also marked an increase from the $1.38 per share posted in the year-ago quarter.
Net sales of $155.1 million rose 9% year over year due to increased sales of WD-40 Multi-Use Product in EIMEA, Latin America and China. Total maintenance product sales of $147.2 million, which comprises 95% of total sales, increased 10% from the year-ago period.
Gross profit of $82.4 million increased from $71.8 million in the year-ago period. The gross margin expanded 250 basis points to 53.1%.
SG&A expenses escalated 19% year over year to $45.6 million. As a percentage of net sales, SG&A expenses climbed 2.4 percentage points to 29.4%.
WD-40 Company Price, Consensus and EPS Surprise
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Segment Details
Americas: Net sales came in at $75.1 million, up 6% year over year. The uptick was driven by a 7% increase in net sales of WD-40 Multi-Use Product. The product saw significant growth in Latin America, rising by $5.4 million. This increase was partially offset by lower sales in the United States and Canada, which declined by $1 million and $0.3 million, respectively.
EIMEA: Net sales of $59.4 million increased 13% in the third quarter compared to the prior-year fiscal quarter. This robust increase was attributable to 17% growth in sales of WD-40 Multi-Use Product. The most significant sales growth for this product occurred in France and Italy, up by $1.4 million and $1.2 million, respectively. Moreover, sales also rose in Benelux and Poland, each up by $1.1 million from the year-ago period. Additionally, net sales of WD-40 Specialist increased 11%, driven by higher sales volume and favorable price increases across the regions.
Asia-Pacific: Net sales came in at $20.5 million, up 14% year over year. The growth was primarily driven by an 11% increase in net sales of WD-40 Multi-Use Product. This product notably expanded in China and Asia’s distributor markets, up by $1 million and $0.4 million, respectively. Net Sales of WD-40 Specialist also soared 30%, driven by strong brand building in certain regions and the timing of customer orders.
Sales of homecare and cleaning products, a key focus area of the company, surged 28%, largely fueled by higher sales volume in Australia. This growth was bolstered by effective promotional efforts and improvements in packaging.