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Jul 31, 2023
Oil-Dri Q4 2023 Earnings Report
Oil-Dri reported record financial results driven by increased sales and improved gross margins.
Key Takeaways
Oil-Dri Corporation of America reported record fourth-quarter and fiscal year 2023 results, with consolidated net sales reaching an all-time high. The company saw significant increases in net income and gross profit, driven by pricing actions and strong performance in both the Retail & Wholesale and Business to Business segments. The company also launched Cat’s Pride Antibacterial Clumping Litter.
Consolidated net sales reached a record $107.4 million, a 15% increase year-over-year.
Net income attributable to Oil-Dri was $11.9 million, a 129% increase year-over-year.
Gross margins climbed to 28% in fiscal 2023 from 19% in fiscal 2022.
B2B Products Group revenues reached an all-time high of $38.1 million, an 18% gain over the prior year.
Revenue by Segment
Forward Guidance
Oil-Dri plans to continue its strong momentum, invest in its infrastructure, and exceed customer expectations with its portfolio of value-added clay products in fiscal year 2024. The company expects advertising expenses for the upcoming fiscal year 2024 to be higher than fiscal year 2023 and equally spread over four quarters.
Positive Outlook
- Continue strong momentum
- Invest in company infrastructure
- Exceed customer expectations
- Improve sales in North America through higher prices and increased distribution of Sorbiam products
- Expand distribution of lightweight cat litter, fluids purification, agricultural, and animal health products.
Challenges Ahead
- Sales were soft in China resulting from the transition to a new distribution strategy.
- Total domestic cat litter volumes declined in the fourth quarter from the prior year.
- Animal health product sales were soft.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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