Oil-Dri Announces Highest Second Quarter Results on Record

Core Insights - Oil-Dri Corporation of America reported record net sales, gross profit, and net income for the second quarter of fiscal year 2025, driven by strategic growth in fluids purification and animal health businesses, as well as the crystal cat litter market [2][3][9] Consolidated Financial Results - Consolidated net sales for Q2 2025 reached $116.9 million, an 11% increase from $105.7 million in Q2 2024, with 7% organic growth and a 4% contribution from the acquisition of Ultra Pet Company [3][9] - Operating income rose to $17.5 million, a 15% increase compared to $15.2 million in the same quarter last year [6][9] - Net income for Q2 2025 was $12.9 million, reflecting a 4% increase from $12.4 million in Q2 2024 [9][10] - EBITDA grew by 16% to $22.2 million, up from $19.2 million in the prior year [9][30] Segment Performance Business to Business (B2B) Products Group - B2B revenues increased by 20% to $43.4 million, with fluids purification sales reaching $26.5 million, a 17% increase, and animal health sales growing by 82% to $7.7 million [11][13] - Operating income for the B2B segment was $14.3 million, a 30% increase from $11.0 million in the previous year [13] Retail and Wholesale (R&W) Products Group - R&W revenues grew by 6% to $73.5 million, with $4.4 million contributed from the Ultra Pet acquisition [14][16] - Operating income for the R&W segment decreased by 5% to $11.3 million, impacted by higher operating costs despite increased net sales [16] Cost and Expense Analysis - Consolidated gross profit for Q2 2025 was $34.4 million, an 11% increase from the previous year, with gross margins slightly improving to 29.5% [4][9] - Selling, general and administrative expenses rose to $17.0 million, an 8% increase attributed to higher compensation and advertising costs [5][15] Cash Flow and Balance Sheet - Cash and cash equivalents as of January 31, 2025, totaled $22.6 million, down from $23.5 million at the end of fiscal year 2024 [10][27] - The company paid down $5.0 million of its revolving credit facility used for the Ultra Pet acquisition [10]