WD-40 Co. reported net income of $19.5 million for its second quarter ending Feb. 28, a 13% increase compared to the same quarter last year.
Diluted earnings per share for the company also rose, to $1.41 per share from $1.24. San Diego-based WD-40’s fiscal year runs from Sept. 1 to Aug. 31.
Net sales for its maintenance products segment, which includes WD-40 lubricants, increased 19% for the quarter to $121.9 million. The company said increased sales of WD-40 products due to increased availability and price increases helped boost those sales.
Total net sales across all the company’s segments reached $130 million, a 16% increase compared to the second quarter of 2021.
By region, net sales in the Americas increased 18% to $54.5 million, due to better availability of products after supply chain adjustments and production capacity increases, WD-40 said in its earnings release. Net sales in Latin America increased 18% for the quarter, while Canada saw a 2% decrease in net sales.
In Europe, the Middle East and Africa, net sales totaled $54.1 million, a 9% rise. Higher sales of maintenance products in the region’s direct and distributor markets were part of the reason for the bump – the former due to price increases and timing of customer orders, the latter due to strong sales of maintenance products in Eastern and Southern Europe.
Net sales in the Asia-Pacific region rose 34% for the quarter, primarily because of higher sales in the region’s distributor markets and China. However, net sales in Australia decreased 5% due to lower sales of homecare and cleaning products. The company said foreign currency exchange rates also had an unfavorable impact on sales for the Asia-Pacific segment. On a constant currency basis, Asia-Pacific sales would have increased by 35% compared to last year, WD-40 said.
“The resilience of the WD-40 Brand has enabled us to be off to a solid start in fiscal year 2022 with maintenance product sales up 14% year-to-date,” said Garry Ridge, WD-40’s chairman and CEO. The company’s commitment to continuous improvement resulted in significant improvements to its supply chain in the United States, Ridge added. “The enhancements we have made have enabled us to increase the production capacity of our highest volume products and return to solid growth in our largest market, the United States, which experienced a 26% increase in maintenance product sales in the second quarter,” he said.