WD-40 pany(US:WDFC)2023-07-10 21:12Q3 FY23 Financial Performance - Net sales increased by 15% to $141.7 million compared to Q3 FY22's $123.7 million[7] - Gross profit margin improved by 290 basis points to 50.6% from 47.7% in Q3 FY22[7, 27] - Operating income rose by 35% to $25.7 million, up from $19.0 million in Q3 FY22[7] - Net income increased by 30% to $18.9 million compared to $14.5 million in Q3 FY22[7] - Diluted EPS increased by 29% to $1.38, compared to $1.07 in Q3 FY22[7] - On a constant currency basis, Q3 FY23 net sales would have increased by $21.9 million or 18% compared to Q3 FY22[7] - Year-to-date net sales were $396.8 million, a 2% increase compared to the same period last fiscal year; on a constant currency basis, the increase would have been $27.3 million or 7%[7] Segment Performance - Americas segment sales increased by 16% to $71.1 million and made up 50% of global sales[13] - EMEA segment sales increased by 6% to $49.5 million and made up 37% of global sales[14, 15] - Asia-Pacific segment sales increased by 42% to $18.1 million and made up 13% of global sales[15] Gross Margin Drivers - Price increases contributed +740 basis points to gross margin improvement[25] - Lower input costs contributed +210 basis points to gross margin improvement[25] - Changes in FX rates contributed +60 basis points to gross margin improvement[25] - Higher costs of specialty chemicals negatively impacted gross margin by -300 basis points[26] - Higher costs of aerosol cans negatively impacted gross margin by -300 basis points[26] - Higher filling fees negatively impacted gross margin by -100 basis points[26] FY23 Guidance - The company reiterated its FY23 guidance, with net sales projected between $535 million and $560 million, representing sales growth between 3.5% and 7.5%[33]