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Oil-Dri
🇺🇸 NYSE:ODC
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Apr 30, 2024

Oil-Dri Q3 2024 Earnings Report

Oil-Dri announced record sales and gross profit for Q3 2024.

Key Takeaways

Oil-Dri reported a 1% increase in consolidated net sales, reaching $106.8 million, marking the 12th consecutive quarter of year-over-year sales growth. Gross profit increased by 10% to $30.1 million, with gross margins expanding to 28%. The company's net income attributable to Oil-Dri decreased to $7.8 million from $8.5 million in the same period last year.

Consolidated net sales increased by 1% to $106.8 million, marking the 12th consecutive quarter of year-over-year sales growth.

Gross profit increased by 10% to $30.1 million, with gross margins expanding to 28%.

Operating income decreased by 28% to $10.4 million due to higher SG&A expenses.

Acquisition of Ultra Pet Company, Inc. was completed on May 1, 2024, for $46 million, expected to be accretive to earnings in Q4 2024.

Total Revenue
$107M
Previous year: $105M
+1.3%
EPS
$1.07
Previous year: $1.94
-44.8%
Gross Profit
$30.1M
Previous year: $27.5M
+9.7%
Cash and Equivalents
$46.8M
Previous year: $29.7M
+57.4%
Free Cash Flow
$10.8M
Total Assets
$319M

Oil-Dri

Oil-Dri

Oil-Dri Revenue by Segment

Forward Guidance

Oil-Dri anticipates the acquisition of Ultra Pet Company, Inc. to be immediately accretive to earnings and create long-term value for shareholders. The company expects advertising costs for the full fiscal year 2024 to be higher than fiscal year 2023. Additional expenses related to the integration of Ultra Pet are expected to be incurred in the fourth quarter of fiscal year 2024.

Positive Outlook

  • Ultra Pet acquisition expected to be immediately accretive to earnings.
  • Strategic alignment and complementary cat litter products between Oil-Dri and Ultra Pet.
  • Leveraging strong relationships to drive distribution at key retailers for Ultra Pet products.
  • Seamless integration of Ultra Pet into Oil-Dri's business expected over the next few quarters.
  • Lightweight attribute of Ultra Pet's crystal products appreciated by consumers and retailers.

Challenges Ahead

  • Elevated costs impacted the bottom line.
  • Increased advertising expenses.
  • Additional expenses related to the integration of Ultra Pet are expected to be incurred in the fourth quarter of fiscal year 2024.
  • Sales from agricultural, animal health, and industrial & sports products declined in the third quarter compared to last year.
  • Challenging global economic and market conditions continue to impact the protein production industry.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Oil-Dri