WD-40 pany(US:WDFC)2025-12-12 19:02Financial Data and Key Metrics Changes - Net sales of maintenance products reached $591 million, up 6% compared to the prior year [34] - Gross margin improved to 55.1%, an increase of 170 basis points from last year [34] - Operating income rose to $103.8 million, reflecting an 8% increase [34] - Adjusted net income was $79.1 million, a 12% increase over the prior year, excluding a one-time tax income adjustment [34] - Adjusted diluted EPS was $5.82 per share, a 14% increase over the prior year, without the tax adjustment [35] 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 [24] - Sales of WD-40 Specialist were up 11%, or $7 million, to $82 million [25] - The core multi-use product generated overall 6% growth in FY25 [23] Market Data and Key Metrics Changes - The US market represents 35% of global revenues and has been the fastest growing market in dollar terms over the past five years, with maintenance product growth of $54 million, a compound annual growth rate of 6.5% [19] - Mexico's business grew from $6.8 million to $23.5 million in FY25, with expectations of reaching $30-$40 million in the coming years [20] - Brazil achieved sales of $15 million in its first full year as a direct market, a more than seven-fold increase [21] - China has consistently delivered strong double-digit growth, while India is now the second-largest market in terms of unit sales after the USA [22] Company Strategy and Development Direction - The company focuses on geographic expansion of its core multi-use product as a primary growth opportunity [17] - The 4x4 Framework strategy includes four Must-Win Battles and four strategic enablers to drive operational excellence [17] - The company aims to leverage its iconic brand to drive innovation and maintain relevance in various markets [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 [17] - The company anticipates mid to high single-digit growth across its divisions, with specific targets for the Americas, EMEA, and Asia-Pacific segments [27] - The employee engagement score reached a record 95%, indicating a strong organizational culture [28] Other Important Information - The company has a disciplined capital allocation strategy, targeting revenue and earnings growth in the mid to high single digits, with a strong focus on returning cash to stockholders [36][37] - The board of directors approved an extension of the current share repurchase plan through the end of FY26, with $30 million remaining under the current authorization [38] Q&A Session Summary Question: Were there any questions from the virtual audience? - There were no questions from the virtual audience during the meeting [42]