Oil-Dri of America(US:ODC)2021-10-15 16:50Financial Data and Key Metrics Changes - Consolidated net sales for fiscal year 2021 reached a record high of $305 million, representing an 8% growth over the prior year, with a 20% increase in the fourth quarter [10][5] - Annual consolidated gross profit decreased by $3.5 million year-over-year due to significant market-based inflation, with cost of goods sold per manufactured ton increasing approximately 8% compared to the prior year [12][10] - Full year net income attributed to Oil-Dri was $11.1 million, with net income per diluted common share at $1.57, down from $2.65 in the prior year, which included a one-time gain [16][10] Business Line Data and Key Metrics Changes - Sales of cat litter increased by 9%, while agricultural products saw a 19% increase year-over-year [10] - Revenues from Fluids Purification products were up 3%, and Industrial and Sports products revenues grew 9% year-over-year [11] - The Business to Business Products Group fourth quarter revenues reached $30 million, a 13% increase, driven by strong growth in Agricultural and Fluid Purification businesses [21] Market Data and Key Metrics Changes - The demand for poultry-related products has increased due to a shift in consumer preferences in China, while the swine market remains under pressure from oversupply [50][49] - The retail and wholesale products group saw fourth quarter revenues of $48 million, a 26% increase, driven by branded and private label cat litter products [25] Company Strategy and Development Direction - The company is focusing on strategic opportunities in lightweight cat litter products and positioning for future growth in Animal Health & Nutrition products [28] - Management emphasized the importance of cost control and price increases to mitigate the impact of rising input costs [20][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and the need for ongoing price increases to cover rising input costs [20][28] - The company remains optimistic about long-term growth in Animal Health, despite current operational pressures [31] Other Important Information - The company ended the fiscal year with cash and cash equivalents of $25 million and a low debt-to-total capital ratio of about 5% [26] - The company repurchased approximately 88,000 shares of common stock for $3.1 million during fiscal year 2021 [27] Q&A Session Summary Question: Progress on marketing and selling Varium and NeoPrime - Management indicated that they expect activity in the second quarter and remain positive about long-term prospects despite current operational pressures [31] Question: Concerns about investor relations and company visibility - Management acknowledged the feedback and discussed the current valuation, emphasizing a focus on running the business rather than extensive marketing [36][40] Question: Demand shifts in China due to swine and poultry market changes - Management confirmed that the poultry market is stable and demand for poultry-related products is increasing, while the swine market faces challenges [50][52] Question: Details on sales growth for branded and private label cat litter - Growth in cat litter sales was attributed to both organic growth and new customer acquisitions, with volume accounting for half of the revenue growth [61][64]