WD-40 reported net income of $8.4 million for its fourth fiscal quarter, ending Aug. 31, down 57% compared to its previous fourth quarter. For its full fiscal year, net income reached $70.2 million, a 16% increase.
San Diego-based WD-40’s fiscal year runs from Sept. 1 to Aug. 31.
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Net sales for its maintenance products hit $104.3 million in the fourth quarter, up 4% from $100.7 million in the previous quarter. For the year, net sales rose 21% to $448.8 million from $369.4 million.
Diluted earnings for the fourth quarter dropped to $0.61 per share from $1.42, but rose for the full year to $5.09 per share from $4.40.
By segment, net sales for the quarter were down 5% in the Americas at $54.2 million, up 6% in Europe, the Middle East and Africa at $45.1 million and up 32% in Asia-Pacific at $15.9 million.
For the year, net sales rose in all segments: 7% in the Americas at $214.6 million, 33% in Europe, the Middle East and Africa at $208.2 million and 26% in Asia-Pacific at $65.2 million.
The company attributed its small dip in the Americas for the quarter to lower sales of its WD-40 Multi-Use Product in the United States and Canada, partly because of supply chain disruptions despite strong demand. This was partly offset by rising sales in Latin America, particularly Mexico.
Net sales increases across the board for the year were the result of trends associated with the COVID-19 pandemic.
“We are pleased that in a year that presented us with both unexpected opportunities and challenges, our tribe was able to achieve both net sales and earnings results in fiscal year 2021 that reflect new record highs for the company,” Garry Ridge, WD-40 Company’s chairman and CEO, said in an Oct. 19 earnings release.
“The dynamics of the pandemic continue to create abnormal swings in our net sales results from period to period,” he said. “Despite this quarterly volatility, we continue to see strong end-user demand for our maintenance products across the globe and we remain optimistic that many of the new end-users who have interacted with our brands during the pandemic will become permanent users of our maintenance solutions.”
The company invested heavily in brand awareness and market penetration, contributing to its down fourth quarter, Ridge said. But he expects the investments to deliver strong topline growth in the future.