Oil-Dri Announces Second Highest Quarterly Earnings in History

Core Insights - Oil-Dri Corporation of America reported a 6% decline in consolidated net sales for the first quarter of fiscal year 2026, totaling $120.5 million compared to $127.9 million in the same period last year [2][5] - The company achieved a net income of $15.5 million, reflecting a 6% decrease from $16.4 million year-over-year, but still marked the second highest quarterly net income in its history [4][11] - Despite the decline in sales and income, the company noted strong performance in its agricultural products and co-packaging cat litter business, which contributed positively to overall revenues [5][13] Consolidated Financial Results - Net sales decreased by 6% from the prior year, driven by reduced volumes in fluids purification and cat litter businesses [2][5] - Income from operations was reported at $17.0 million, down 20% year-over-year, but showed an 8% sequential growth from the previous quarter [8] - EBITDA for the quarter totaled $23.6 million, a 10% decrease compared to the same period last year, but an 11% improvement sequentially [9] Segment Performance - The Business to Business (B2B) Products Group reported revenues of $44.3 million, down 9% year-over-year, with significant declines in fluids purification and animal health products, although agricultural business saw a 12% growth [13][14] - The Retail and Wholesale (R&W) Products Group's revenues were $76.2 million, a 4% decrease from the prior year, primarily due to lower domestic cat litter sales, which were impacted by competitive promotional efforts [15][16] Cost and Expenses - Consolidated gross profit was $35.5 million, reflecting a 13% decline from the previous year, with gross margins at 29.5% compared to 31.9% in the same period last year [6][23] - Selling, general and administrative (SG&A) expenses decreased by 5% to $18.5 million, attributed to lower bad debt expenses and a reduced corporate bonus accrual [7][16] Cash Flow and Financial Position - Cash and cash equivalents at the end of the quarter were $42.4 million, down from $50.5 million at the end of the previous fiscal year, with significant cash uses including capital investments and share repurchases [12][26] - The company reported a net decrease in cash and cash equivalents of $8.1 million for the quarter [27]