Q3 2024 WD-40 Co Earnings Call Transcript
Key Points
- WD-40 Co (WDFC) reported net sales of $155 million for Q3 2024, marking a 9% increase and a new record for the company.
- Sales of maintenance products grew over 10% for both the third quarter and year-to-date, aligning with long-term growth targets.
- Gross margin improved to 53.1%, up 250 basis points compared to the same quarter last year.
- The company saw strong sales growth in Latin America, particularly due to the transition to a direct market model in Brazil.
- E-commerce sales increased by 18% year-to-date, with double-digit growth across all trade blocs.
- Sales in the United States decreased by 2% compared to the prior year quarter, driven by several factors including strong prior year performance and declines in nonstrategic household brands.
- Sales of WD-40 Multi-Use Product in Canada decreased by 13% due to phasing associated with the discontinuation of the classic can delivery system.
- The ERP implementation caused some disruptions, although these lessened as the quarter progressed.
- Home care and cleaning product brands, which are not a strategic focus, saw a decline of 19% in EIMEA.
- The company continues to face challenges with input cost fluctuations, which could impact gross margin targets if there are significant spikes.
Ladies and gentlemen, thank you for standing by. Good day and welcome to the WD-40 Company third-quarter 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 Kelley, Vice President, Stakeholder, and Investor Engagement. Please proceed.
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 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-Q for the period ending May 31, 2024. These documents are 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 call.
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