Thu, Jun 6, 8:11 PM (50 days ago)
Oil-Dri Corporation of America reported a solid financial performance for the quarter ending April 30, 2024. Key highlights include: 1. **Revenue and Profitability**: The company saw a 6% increase in net sales to $323.9 million for the nine months ended April 30, 2024, compared to $305.6 million in the same period of 2023. Gross profit rose by 27% to $92.1 million, with the gross margin improving to 28%. 2. **Segment Performance**: - **Business to Business Products Group**: Net sales increased by 7% to $111.6 million, driven by strong demand for fluids purification products. - **Retail and Wholesale Products Group**: Net sales grew by 5% to $212.3 million, primarily due to higher prices for cat litter products. 3. **Expenses**: SG&A expenses increased by 20% to $53.3 million, driven by higher compensation costs and acquisition-related expenses. 4. **Net Income**: Consolidated net income for the nine months was $30.9 million, up from $17.6 million in the previous year, reflecting improved operational performance. 5. **Cash Flow**: Operating activities generated $36.9 million in cash, and the company ended the period with $46.8 million in cash and cash equivalents, up from $31.8 million at the end of fiscal 2023. 6. **Debt and Financing**: The company issued $10 million in Series D Senior Notes to finance part of the $46 million acquisition of Ultra Pet, enhancing its position in the crystal cat litter segment. 7. **Outlook**: The company anticipates continued growth and plans increased capital expenditures in FY2024, supported by strong cash flow and liquidity. This performance indicates robust financial health, positioning Oil-Dri for sustained growth and market expansion.