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Jan 31, 2023
Oil-Dri Q2 2023 Earnings Report
Announced record sales for the second quarter and first six-months of fiscal year 2023.
Key Takeaways
Oil-Dri reported record high consolidated net sales, surpassing $100 million for the quarter, with revenue growth across product portfolios in both the Retail and Wholesale and Business to Business Products Groups. Net income demonstrated significant growth over the prior year, even with a $2.5 million reserve for anticipated costs relating to proactive capacity modification of Oil-Dri’s sole landfill.
Consolidated net sales reached an all-time high of $101.7 million, a 17% increase over the prior year, driven by pricing actions.
Second quarter consolidated gross profit was $23 million, a 48% increase, with margins expanding to 23% from 18% in the prior year.
Business to Business Products Group's second quarter revenues reached a record $35.2 million, a 24% gain over the prior year.
Retail and Wholesale Products Group's second quarter revenues reached an all-time high of $66.5 million, a 13% increase over the prior year, primarily driven by a 14% increase in domestic cat litter sales.
Revenue by Segment
Forward Guidance
The team will continue to work diligently to return margins to their historic levels. Further pricing actions, efficiency enhancements, and cost saving measures will occur as we move forward in this inflationary environment.
Positive Outlook
- Continued trajectory of record high consolidated net sales
- Revenues grew across product portfolio
- Increased interest within the industry for animal health products
- Expanding unique mineral businesses both domestically and around the world
- Strategies are proving successful within North America as sales increased due to a new product line and expanded distribution to new key customers.
Challenges Ahead
- Did not show gross margin expansion over the first quarter of fiscal 2023
- Inflationary environment
- Recorded a reserve of $2.5 million for anticipated modification costs at its sole landfill
Revenue & Expenses
Visualization of income flow from segment revenue to net income
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