Earnings Fall at WD-40


Earnings Fall at WD-40

WD-40 Co. reported a decrease in net income on increased net sales for its maintenance products segments for its second fiscal quarter ended Feb. 29, while Mr. Lube + Tires, a Canadian quick lube service business, posted increased sales revenue for 2023 and the fourth quarter.


WD-40 posted net income of $15.5 million, a 6% decrease from $16.5 million in the same period last year. Net sales for its maintenance products segments – which includes WD-40 lubricants – rose to $131.2 million, a 7% increase from $122.1 million.

Overall net sales, which includes homecare and cleaning products, were up 7% at $139.1 million, compared to $130.2 million.

The company’s Americas segment’s net sales, which represents 46% of total net sales, was up 1% at $63.5 million. The company attributed the increase primarily to net sales growth of certain products in Latin America and the United States. The increased sales in Latin America were primarily due to higher volumes in Mexico as a result of timing of customer orders and favorable impacts of changes in foreign exchange rates.

The Europe, India, Middle East and Africa segment, which comprised 39% of total net sales in the quarter, experienced a 16% percent in net sales. WD-40 Multi-Use Product sales increased most significantly in France, India and Iberia.

In Asia Pacific, the segment representing 15% of total net sales in the quarter, net sales increased 4% primarily due to higher sales of WD-40 Multi-Use Product. Sales in Asia distributor markets increased, which the company attributed primarily to price increases in the markets and successful promotional programs in certain regions, as well as timing of customer orders.

WD-40 President and CEO Steve Brass said in its earnings press release it was announcing a decision to pursue a sale of its U.S. and United Kingdom homecare and cleaning products portfolio, to allow the company to focus on its core, higher-margin maintenance products, while also creating headspace for future innovation.

Mr. Lube + Tires

Fourth-quarter sales revenue for Mr. Lube + Tires rose 16% to $7.8 million for the fourth quarter, compared to $6.7 million. Full-year sales revenue climbed 19% to $28.2 million, compared to $23.7 million, parent company Diversified Royalty Corp. reported in its earnings release.

The quick lube chain accounted for 48% of Diversified Royalty’s sales revenue in the fourth quarter and for 50% of its sales revenue for full-year 2023. The stores generates same-store sales growth of 14% in the fourth quarter, compared to 17%, and 17% for the full year in 2023, compared to 18%.

Mr. Lube + Tires is Canada’s largest quick lube brand and has more than 170 locations. Established in 1976, Mr. Lube was acquired by Diversified Royalty in August 2015.

Diversified Royalty Corp. is a multi-royalty corporation engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America.

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