Oct 31, 2020

Brady Q1 2021 Earnings Report

Brady's financial performance saw sales decline, but pre-tax income increased due to efficiency gains.

Key Takeaways

Brady Corporation reported a decrease in sales by 3.4%, driven by a 4.9% organic sales decline, while experiencing a 1.5% increase from foreign currency translation. Despite the sales dip, pre-tax income increased due to focus on sustainable efficiency gains. The company's Workplace Safety business showed strength, driven by COVID-19 related products.

Sales declined by 3.4% due to a 4.9% organic sales decline, offset by a 1.5% increase from foreign currency translation.

Income before income taxes and losses of unconsolidated affiliate increased by 1.6% to $42.2 million.

Diluted EPS was $0.64, down from $0.70 in the same quarter of the prior year due to a reduced income tax rate last year.

Cash flow from operating activities increased by 61.8% to $62.8 million.

Total Revenue
$277M
Previous year: $287M
-3.4%
EPS
$0.64
Previous year: $0.7
-8.6%
Organic Sales Growth
-4.9%
Foreign Currency Impact
1.5%
Income before income taxes
$42.2M
Cash and Equivalents
$256M

Brady

Brady

Brady Revenue by Segment

Forward Guidance

Brady expects macroeconomic challenges and reduced demand for COVID-19 related products to impact financial results for the quarter ending January 31, 2021.

Challenges Ahead

  • Reduction in demand for products specifically designed to help in the fight of COVID-19
  • Macro-economic challenges caused by additional government lockdowns
  • Impact to financial results for the quarter ending January 31, 2021