Q4 2024 WD-40 Co Earnings Call Transcript
Key Points
- WD-40 Co (WDFC) reported a record-breaking fourth quarter with net sales of $156 million, marking an increase of over 11% year-over-year.
- The company's gross margin improved to 54.1% in the fourth quarter, a 270 basis point increase compared to the same period last year.
- Sales in the EIMEA region grew by approximately 16%, driven by higher volume sales of WD-40 multi-use products.
- The transition to a direct market model in Brazil resulted in a $7 million increase in net sales for the full fiscal year.
- WD-40 Co (WDFC) achieved strong growth in digital commerce, with global sales in the e-commerce channel up 12% compared to the prior year.
- Sales of WD-40 multi-use product in the United States decreased by 4% compared to the prior period.
- In Canada, sales of WD-40 multi-use product decreased 3% due to the phasing out of the classic can delivery system.
- The company's cost of doing business increased to 38% in the fourth quarter, up from 34% in the prior year, primarily due to higher employee-related costs.
- WD-40 Co (WDFC) is facing challenges in achieving its 55% gross margin target, with current guidance indicating a range of 54% to 55% for fiscal year 2025.
- The divestiture of homecare and cleaning brands in the Americas and the UK is expected to temporarily impact certain aspects of the business model.
Ladies and gentlemen, thank you for standing by. Good day, and welcome to the WD-40 Company fourth quarter and full fiscal year 2024 earnings conference call. Today's call is being recorded. (Operator Instructions)
I would now like to turn the presentation over to the host for today's call, Wendy Kelly, Vice President, Stakeholder and Investor Engagement. Please proceed.
Good afternoon, and thanks to everyone for joining us today. On our call today are WD-40 Company's President and Chief Executive Officer, Steve Brass; and Vice President and Chief Financial Officer, Sara Hyzer. In addition to the financial information presented on today's call, we encourage investors to review our earnings presentation, earnings press release and Form 10-K for the period ending August 31, 2024.
These documents will be made available on our investor relations website at investor.wd40company.com. A replay and transcript of today's call will also be made available shortly after this
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