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Jul 31, 2021
Oil-Dri Q4 2021 Earnings Report
Announced fourth quarter and fiscal year 2021 results, marked by record high consolidated net sales for both periods, but profitability was greatly reduced due to significant cost inflation across all input channels.
Key Takeaways
Oil-Dri Corporation of America reported a 20% increase in net sales for the fourth quarter, reaching a record high of $78.13 million. However, net income attributable to Oil-Dri decreased by 90% to $603,000 compared to the prior year, primarily due to significant cost inflation across all input channels.
Consolidated net sales reached an all-time quarterly high of $78 million, a 20% increase over the prior year.
Net income attributable to Oil-Dri was $603,000, a 90% decrease from the prior year.
Gross profit margin decreased to 19% from 21% in the prior year due to increased cost of goods sold, freight, and packaging costs.
B2B Products Group revenues increased by 13% driven by strong growth in agricultural and fluid purification businesses, while R&W Products Group revenues increased by 26% due to higher cat litter sales.
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
As we begin fiscal year 2022, we will continue to focus on developing our value-added businesses and enhancing profitability.
Positive Outlook
- Continue to push forward with our two biggest growth opportunities: mineral-based antibiotic alternative feed additives and lightweight cat litter.
- Our animal health products are currently in several trials across the globe.
- Consumer demand for our lightweight cat litter remains strong, and our branded and private label products continue to surpass category growth.
- Our new Cat’s Pride UltraClean and Cat’s Pride Flushable items were recently launched.
- E-commerce retailers have increased their Cat’s Pride product offerings, including some of our newly launched products.
Challenges Ahead
- Our profitability was greatly reduced due to significant cost inflation across all input channels.
- Not only did the price of resin used in our jugs and pails spike, but higher lumber costs for pallets also contributed to the considerable increase in our overall packaging expenses.
- Dramatic increases in freight, natural gas and other material costs also negatively impacted our margins.
- It is clear we did not keep up with the rapid pace of inflation.
- Our supply chain was challenged as a result of trucking and ocean carrier capacity constraints combined with a nationwide labor shortage.
Revenue & Expenses
Visualization of income flow from segment revenue to net income