Mon, Dec 9, 9:09 PM (63 days ago)
For the quarter ending October 31, 2024, Oil-Dri Corporation of America (ODC) reported record net sales of $127.9 million, a 15% increase from $111.4 million in the prior year. Gross profit rose to $40.8 million, yielding a gross margin of 32%, up from 28%. Operating income surged 61% to $21.2 million, while net income increased by 52% to $16.4 million, driven by higher volumes and improved product mix across both Retail and Wholesale, and Business to Business segments. However, selling, general, and administrative expenses rose 10% to $19.6 million, primarily due to increased segment costs. Cash flow dynamics showed a net decrease of $10.9 million in cash and equivalents, primarily due to capital expenditures and debt repayments. The company maintained compliance with debt covenants and has an amended credit agreement providing increased borrowing capacity. Overall, the strong financial performance reflects effective operational efficiencies and strategic growth initiatives, although uncertainties remain regarding market conditions and ongoing operational costs.