Strong demand pushes WD-40 sales ahead in Q2
Maintenance products manufacturer WD-40 reported second quarter sales jumped 12% to $111.9 million from second quarter 2020 sales of $100 million.
Sales for the first six months of the San Diego company’s fiscal year increased 19% to $236.5 million.
Sales of maintenance products considered the primary growth focus for WD-40, increased 13% in the second quarter when compared to the prior year fiscal quarter.
The sales increase was attributed to increased sales of WD-40 Multi-Use Product driven by increased demand linked to renovation trends associated with the pandemic, improved market conditions due to a reduction of COVID-19 lockdown measures, and increased sales through the e-commerce channel.
Net sales of homecare and cleaning products increased 3% in the second quarter.
WD-40’s net income for the second quarter was $17.2 million, a 20% increase compared to the same period last year. The manufacturer’s net income for the first six months of its fiscal year soared 54% to $40.8 million.
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The Bottom Line: Second quarter sales rise 12% while earnings jump 20% to $17.2 million for the period.
What the CEO said: "We continue to experience very high demand for our maintenance products due to renovation trends associated with the pandemic, or what we call isolation renovation," said Garry Ridge, WD-40 chairman and CEO. "In addition, we are seeing improved market conditions due to a reduction of COVID-19 lockdown measures in many markets, particularly in China, as well as increased sales through the e-commerce channel."
But Ridge also noted that pandemic conditions have caused some disruptions and constraints to WD-40’s supply chain, primarily in the Americas, which impacted our ability to meet the increased end-user demand.
“Despite these supply chain challenges in the United States, we continue to experience very strong point-of-sale end-user demand for our maintenance products,” Ridge said “We are working to address the supply chain challenges and there is a recovery plan underway which we expect will result in improved conditions in the back half of the year."
Company info: The full second quarter 2021 report from WD-40 is available here.