Q1 2025 WD-40 Co Earnings Call Transcript
Key Points
- WD-40 Co (WDFC) reported a 9% increase in net sales for the first quarter, reaching $153.5 million.
- The company's maintenance products saw a 10% increase in sales, marking the third consecutive quarter of double-digit growth.
- Gross margin improved to 54.8%, a 100 basis point increase from the previous year, moving closer to the target of 55%.
- The company experienced strong sales growth in the Americas and EIMEA regions, with increases of 10% and 13% respectively.
- WD-40 Co (WDFC) has gone public with its sustainability targets, aiming for significant reductions in carbon emissions by 2030.
- Sales in the Asia Pacific region decreased by 4% due to lower sales volumes and timing of customer orders.
- The Americas segment experienced an 11% decline in operating income, partly due to a customer bankruptcy impacting results by $800,000.
- Higher costs associated with warehousing, distribution, and freight negatively impacted gross margin by 100 basis points.
- The company's cost of doing business increased by 15%, driven by higher employee-related expenses and increased professional service costs.
- The homecare and cleaning product segment saw a decline, with a 19% drop in the UK, as the company shifts focus to maintenance products.
Ladies and gentlemen, thank you for standing by. Good day and welcome to the WD-40 Company first quarter fiscal year 2025 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 November 30, 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 call. On today's call,
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