WD-40 COMPANY REPORTS 1Q 2019 FINANCIAL RESULTS
Jan. 14, 2019
Source: WD-40 Company news release
San Diego, California -- WD-40 Company, a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its first fiscal quarter ended November 30, 2018.
Financial Highlights and Summary
Total net sales for the first quarter were $101.3 million, an increase of 4 percent compared to the prior year fiscal quarter.
Translation of the Company's foreign subsidiary results from their functional currencies to U.S. dollars had an unfavorable impact on sales for the first quarter. On a constant currency basis, total net sales for the first quarter would have been $102.4 million, an increase of 5 percent compared to the prior year fiscal quarter.
Net income for the first quarter was $13.3 million, an increase of 5 percent from the prior year fiscal quarter.
Diluted earnings per share were $0.95 compared to $0.90 in the prior year fiscal quarter.
Gross margin percentage was 55.1 percent compared to 55.5 percent in the prior year fiscal quarter.
Selling, general and administrative expenses were up 5 percent in the first quarter to $32.7 million when compared to the prior year fiscal quarter.
Advertising and sales promotion expenses were up 17 percent to $6.0 million compared to the prior year fiscal quarter.
"We are happy that fiscal year 2019 is off to a solid start," said Garry Ridge, WD-40 Company's president and chief executive officer. "Sales of our 2025 brands - the brands we see taking us to our long-term revenue objective of $700 million by the end of fiscal year 2025 - are up 5 percent globally compared to the first quarter of last year. Globally, our flagship product, WD-40 Multi-Use Product grew 5 percent in the first quarter, and our WD-40 Specialist product line grew 13 percent compared to the prior year.
"While we saw strength in our Americas and EMEA segments, our Asia-Pacific segment reported sales declines of 10 percent year over year. Due to the geographically diverse nature of our business and depending on what is going on in a region at any given time, some of our markets may overperform while others may underperform. This is quite normal for a business like ours that operates in 176 countries and territories.
"Overall, we are off to a good start in 2019 and we believe the tribe's hard work and dedication will continue to drive revenue growth, strengthen our financial foundation, and enhance shareholder value," Ridge concluded.