WD-40 pany(US:WDFC)2025-12-12 19:00Financial Data and Key Metrics Changes - Net sales of maintenance products reached $591 million, up 6% compared to the prior year [32] - Gross margin improved to 55.1%, an increase of 170 basis points from last year [32] - Operating income rose to $103.8 million, reflecting an 8% increase [32] - Adjusted net income was $79.1 million, a 12% increase over the prior year, excluding a one-time tax income adjustment [32][33] - Adjusted diluted EPS was $5.82 per share, a 14% increase over the prior year, without the tax adjustment [33] Business Line Data and Key Metrics Changes - Sales of premium formats of the Multi-Use WD-40 Product increased by 8%, approximately $18 million over the prior year [22] - Sales of WD-40 Specialist were up 11%, or $7 million, to $82 million [24] - The WD-40 Specialist brand has a five-year compound annual growth rate of 14% [24] Market Data and Key Metrics Changes - The U.S. market represents 35% of global revenues and has been the fastest growing market globally in dollar terms over the past five years, with maintenance product growth of $54 million, a compound annual growth rate of 6.5% [18] - Mexico's business tripled from $6.8 million to $23.5 million in FY25, with expectations of reaching $30-$40 million in the coming years [19] - Brazil achieved sales of $15 million in its first full year as a direct market, a more than seven-fold increase [20] - China has consistently delivered strong double-digit growth, with a strategy of expanding distribution [21] Company Strategy and Development Direction - The company focuses on geographic expansion of its core multi-use product as a primary growth opportunity [16] - The 4x4 Framework includes four Must-Win Battles and four strategic enablers to drive operational excellence [16] - The company aims to leverage its iconic brand to create new value and drive growth [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, estimating the opportunity to quadruple current sales from FY25 sales of $478 million to over $1.9 billion [16] - The company anticipates mid to high single-digit growth, with specific targets for different regions: 5%-8% in the Americas, 8%-11% in EMEA, and 10%-13% in Asia-Pacific [26] - The company emphasizes the importance of employee engagement, achieving a record 95% engagement score [27] Other Important Information - The company has a strong balance sheet with predictable free cash flow and a target return on invested capital of 25% or more [32] - The board of directors raised the dividend by more than 8%, maintaining a strong payout ratio [35] - The company has paid dividends without interruption for over 40 years [35] Q&A Session Summary - There were no questions from the virtual audience during the meeting [39]