Q2 2024 WD-40 Co Earnings Call Transcript
Key Points
- Net sales of $139 million, an increase of 7% over the prior year, with a 5% growth excluding the favorable impact of currency.
- Sales growth across all trade blocks for the second consecutive quarter, with Americas at 1%, EIMEA at 16%, and Asia Pacific at 4%.
- Gross margin improved to 52.4%, up 160-basis points over the prior year, benefiting from favorable sales mix and lower costs associated with Specialty Chemicals.
- Year-to-date sales of WD-40 Multi-Use Product grew 10%, with strong growth in EIMEA at 19%, Americas at 6.5%, and Asia Pacific at 3%.
- Year-to-date e-commerce sales are up 24%, with strong growth in both EMEA and the Americas trade blocks.
- Short-term impacts from the ERP implementation had a minor unfavorable impact on the quarter's performance, particularly in the US.
- Decline in home care and cleaning product sales, primarily due to lower volume in the US as a result of reduced demand.
- The cost of doing business increased to 36% compared to 33% in the prior year, driven by increases in employee-related costs and professional services.
- Adjusted EBITDA margin was under pressure at 17%, compared to 19% in the prior year, reflecting higher cost of business items.
- Potential short-term setback from the sale of the homecare and cleaning products portfolio, although a longer-term benefit is expected as the company focuses on higher growth and higher margin maintenance products.
Ladies and gentlemen, thank you for standing by the day, and welcome to the WD-40 Company's Second Quarter Fiscal Year 2024 earnings conference call. Today's call is being recorded at this time. (Operator Instructions)
I would now like to turn the presentation over to the host for today's call. Ross Cooling Communications Manager, Investor Relations and Stakeholder Engagement. Please proceed.
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Thank you. 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, Finance and Chief Financial Officer of 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 February 29, 2024. These documents are available on our Investor Relations website at investors.WD-40 Company.com. A. replay and transcript
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