WD-40 Company ( (WDFC) ) has released its Q1 earnings. Here is a breakdown of the information WD-40 Company presented to its investors.
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WD-40 Company is a global marketing entity known for its development and sale of maintenance and cleaning products, with a strong presence in workshops, factories, and homes worldwide. In its first fiscal quarter of 2025, WD-40 Company reported a 9% increase in global net sales compared to the previous year, reaching $153.5 million. This growth was supported by favorable currency impacts and robust sales of its core maintenance products. The company’s gross margin improved to 54.8%, up from 53.8% the previous year, showcasing effective cost management and strategic execution across key regions.
Key financial highlights include a 10% increase in maintenance product sales and an 8% rise in net income, totaling $18.9 million. Diluted earnings per share increased by 9% to $1.39. Regionally, the EIMEA segment showed the most significant sales growth at 18%, followed by an 8% increase in the Americas. However, the Asia-Pacific region experienced a decline of 4% in net sales. The company also announced the divestiture of its homecare and cleaning business portfolios, which had a minor impact on overall financial metrics.
In terms of strategic initiatives, the company successfully expanded its distribution and promotional activities, particularly for the WD-40 Specialist range in the United States and EIMEA. Despite increased expenses in selling, general, and administrative areas, the company maintained a strong operating income of $25.1 million, reflecting a 4% growth. Furthermore, WD-40 Company continued its shareholder return strategy with dividends and share repurchases under its authorized plan.
Looking forward, WD-40 Company remains optimistic about its fiscal year 2025 outlook, maintaining its guidance for net sales growth, gross margin, and earnings per share. The company emphasizes its commitment to its strategic framework and operational efficiencies, aiming to unlock value in high-potential markets while pursuing profitable growth globally.
