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Jan 31, 2022
Oil-Dri Q2 2022 Earnings Report
Oil-Dri announced record sales for the second quarter of fiscal year 2022, but profitability was impacted by inflationary headwinds.
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
Revenue by Segment
Business to Business Revenue
CapyFin.comRetail and Wholesale Revenue
CapyFin.com 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