WD-40 is lubricating the world
Strong international growth offset a decline in domestic sales at WD-40 where the company produced its highest volume fourth quarter ever.
Total net sales for the period ended August 31, increased 4% to $97.6 million while full year sales increased 4% to $383 million. WD-40 has a strong international presence and the impact of currency exchange rates favorably impacted results. On a constant currency basis total net sales were $93.9 million for the fourth quarter and $377.7 million for the full fiscal year.
Profits increased 42% to $11.5 million, or 77 cents a share, in the quarter and 10% to $43.7 million, or 53 cents, for the full year.
"We had a good quarter and a good year and are pleased we have been able to maintain sustainable growth across our core business globally," said Garry Ridge, WD-40’s president and CEO. "While we saw both positive and negative impacts from changes in foreign currency exchange rates, we had local currency growth across key markets and the fourth quarter was our highest revenue quarter in history. We continue to focus on our key strategic initiatives, which include growing our core business of multi-purpose maintenance products, and we are pleased with our progress in this area.”
The company’s strongest growth came from its two international segments, Asia-Pacific and Europe, Middle-East, Africa where sales were up 12% and 11%, respectively to $11.1 million and $40 million. Sales in the Americas declined 2% to $46.4 million. The sales growth occurred despite a 15% reduction in advertising and sales promotion expenses in the fourth quarter and a 4% full year reduction.
Looking ahead, the company expects sales this year to grow between 4% and 8% to $398 million to $413 million.
"We continue to focus on protecting our brands and intellectual property rights around the world. And we are attentive to heightened regulatory requirements that come with the increasing importance of our global footprint," Ridge said. "We are also working hard in the area of product innovation and bringing new products and new brands, such as the recent acquisition of the GT85 brand, to our end-users across the globe as we work to grow revenues.
In addition to the company’s ubiquitous flagship WD-40 product, it’s portfolio of brands includes 3-IN-ONE, X-14, 2000 Flushes, Carpet Fresh, no vac, Spot Shot, 1001, Lava and Solvol.