WD-40 pany(US:WDFC)2025-04-08 11:08Financial Performance - Total net sales for the second quarter were $146.1 million, an increase of 5 percent compared to the prior year fiscal quarter[5]. - Maintenance product sales reached $139.3 million, reflecting a 6 percent increase year-over-year, driven by strong performance in EIMEA and Latin America[5]. - Net sales for the six months ended February 28, 2025, increased to $299.6 million, up from $279.5 million in the same period of 2024, representing a growth of approximately 7.2 percent[27]. - Net income surged to $29.9 million, a 92 percent increase from the prior year fiscal quarter, aided by a favorable tax adjustment of $11.9 million[5]. - Net income for the six months ended February 28, 2025, was $48.8 million, compared to $33.0 million for the same period in 2024, indicating a growth of approximately 47.6 percent[29]. Earnings and Margins - Gross margin improved to 54.6 percent, up from 52.4 percent in the prior year fiscal quarter, representing a 220 basis point increase[5]. - Diluted earnings per share rose to $2.19, a 92 percent increase, with non-GAAP adjusted diluted EPS at $1.32, up 16 percent[5]. - Diluted earnings per share are now expected to be between $5.25 and $5.55, reflecting anticipated growth of 11 to 17 percent compared to 2024 pro forma results[19]. Segment Performance - The Americas segment accounted for 45 percent of total net sales, with a 3 percent increase in sales, primarily due to a 4 percent rise in WD-40 Multi-Use Product sales[9]. - EIMEA segment sales increased by 10 percent, driven by a 12 percent rise in WD-40 Multi-Use Product sales, particularly in Italy and the Benelux region[9]. - Asia-Pacific segment sales decreased by 1 percent, with a notable 2 percent decline in WD-40 Multi-Use Product sales, although sales in China increased by 5 percent[9]. Guidance and Future Plans - The company revised its fiscal year 2025 guidance, projecting net sales growth between 6 and 11 percent, with total net sales expected to be between $600 million and $630 million[12]. - The company plans to divest its homecare and cleaning product portfolios in the Americas and United Kingdom, as these products represented only 5 percent of total net sales[10]. Tax and Financial Position - The provision for income tax has been reduced and is expected to be around 22.5 percent[19]. - The company reported a tax benefit from the release of an uncertain tax position amounting to $11.9 million[29]. - Total current assets increased to $272.4 million as of February 28, 2025, compared to $255.4 million as of August 31, 2024[25]. - Total liabilities decreased to $216.1 million as of February 28, 2025, from $218.5 million as of August 31, 2024[25]. - Cash and cash equivalents at the end of the period were $53.0 million, compared to $55.4 million at the end of the same period in 2024[29]. - Operating expenses for the six months ended February 28, 2025, were $115.4 million, up from $103.4 million in the same period of 2024, reflecting an increase of approximately 11.5 percent[27]. Reporting - The company expects to file its Quarterly Report on Form 10-Q for the period ended February 28, 2025, on April 9, 2025[21].