WD-40 sales up, margins down

WD-40 Company (WDFC) reported sales for the fiscal year increased however challenging headwinds led to decreased income.

“Fiscal year 2022 was a challenging year dominated by inflation, geopolitical tensions, currency headwinds, and continuing disruptions caused by the COVID-19 pandemic,” said Steve Brass, president and CEO of WD-40.

The San Diego, Calif.-based company reported that for the full fiscal year, total net sales were $518.8 million, an increase of 6% compared to the prior fiscal year.

For the full fiscal year, net income was $67.3 million, a decrease of 4% from the prior fiscal year. 

Total net sales for the fourth quarter were $130.4 million, an increase of 13% compared to the prior year fiscal quarter.

Net sales by segment, as a percent of total net sales for the fourth quarter were as follows: For the Americas net sales increased by 25%; net sales in EMEA decreased by 3%; and net sales in Asia-Pacific increased by 18%.

The Bottom Line: WD-40 Company had net sales increases of 6% to $519 million, but margin losses of about 4%, due mostly to various global disruptions.

What the CEO said: “We learned to expect the unexpected this fiscal year and are a better prepared and more agile organization because of the challenges we’ve faced. We are pleased we were able to achieve solid topline growth of our maintenance products in this volatile environment, including 8% growth of WD-40 Multi-Use Product and 19% growth of WD-40 Specialist,” said Steve Brass, president and CEO of WD-40.

“Unfortunately, gross margin was the Achilles heel of fiscal year 2022,” he said. “The current inflationary environment has severely disrupted our ability to achieve our 55% gross margin target over the near-term.”

Company info: Click HERE to read the full year sales financial report from WD-40 Company.