WD-40 Co. posted net income of $17.2 million for the quarter ending Feb. 28, up 20 percent from the same period last year. Net sales also climbed by 12% to $111.9 million.
Earnings per diluted share rose from $1.04 to $1.24. San Diego-based WD-40’s fiscal year runs from Sept. 1 to Aug. 1.
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Net sales in the Americas dropped just over 1% to $46.1 million, while net sales in Europe, the Middle East and Africa experienced a 19% increase to $49.8 million. In Asia-Pacific, net sales climbed 39% to $15.9 million, compared to the year-earlier period.
The company attributed its slight drop in the Americas primarily due to lower sales of maintenance products in the United States, caused by supply chain constraints and disruptions relating to the COVID-19 pandemic. However, higher sales in other regions – including a 15% increase in Canada and a 27% increase in Latin America – helped to offset this some.
The Europe, Middle East and Africa region’s increase in net sales can be attributed to higher sales of maintenance products in both direct and distributor markets, the company said. Recent renovation trends in the region led to increased sales for WD-40’s multi-use product.
In Asia-Pacific, the company also enjoyed higher sales of its multi-use product in China, up 251% compared to the previous year, thanks to improved market conditions due to a reduction in pandemic lockdown measures compared to the year-earlier period when the pandemic was in its earliest stages. Also contributing to the region’s increase was 39% more sales in Australia thanks to renovation trends and increased demand for cleaning products due to the pandemic.
“We continue to experience very high demand for our maintenance products due to renovation trends associated with the pandemic, or what we call isolation renovation,” said Garry Ridge, WD-40 Company’s chairman and CEO, in the company’s earnings report released April 8. “In addition, we are seeing improved market conditions due to a reduction of COVID-19 lockdown measures in many markets, particularly in China, as well as increased sales through the ecommerce channel.”
Ridge noted the company’s supply chain disruptions in the U.S. “We are working to address the supply chain challenges and there is a recovery plan underway which we expect will result in improved conditions in the back half of the year,” he said. “Additionally, over the long-term, we are optimistic that many of the new end users who have interacted with our products during the pandemic will become permanent users of our maintenance and homecare solutions.”