Oil-Dri Q2 2022 Earnings Report
Key Takeaways
Oil-Dri Corporation of America reported record consolidated net sales of $87 million for the second quarter of fiscal 2022, a 17% increase over the prior year. However, consolidated net income attributable to Oil-Dri decreased to $2 million from $4 million in fiscal 2021 due to inflationary pressures and supply chain disruptions.
Consolidated net sales reached a record $87 million, a 17% increase year-over-year.
Business to Business Products Group's revenues reached an all-time high, driven by fluids purification and agricultural products.
Retail and Wholesale Products Group's revenues reached a record quarterly high, driven by cat litter and industrial/sports products.
Inflation negatively impacted gross profit and operating income.
Oil-Dri
Oil-Dri
Oil-Dri Revenue by Segment
Forward Guidance
The company will strive to improve profitability, focus on growing its business, and take advantage of opportunistic share repurchases.
Positive Outlook
- Growth strategies are proving effective with the animal health business gaining traction.
- Consumer demand for lightweight cat litter continues to gain momentum.
- Team is working diligently to overcome supply chain and logistics obstacles.
- Aggressive pricing strategies are being implemented.
- Cost saving measures are being implemented.
Challenges Ahead
- Ongoing inflationary headwinds continue to impact profitability.
- Supply chain disruptions and logistics delays remain a challenge.
- Capacity constraints persist.
- Still have a ways to go to rebuild margins to historical levels.
- Ocean freight delays impede shipments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income