Brady Corp's Q2 Report – Net Sales Down 1.1%, Share Price Drops 5.3%

By Bobby Samwell • Thursday, February 22 16:05 • Permanent Link

Brady Corporation has released its 10-Q report, detailing its performance for the three and six months ended January 31, 2024. The company, headquartered in Milwaukee, Wisconsin, is a global manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products, and people. Brady is organized and managed on a geographic basis with two reportable segments: Americas & Asia and Europe & Australia.

In the three months ended January 31, 2024, Brady's net sales declined by 1.1% to $322.6 million compared to the same period in the prior year, with organic sales growth of 1.6% and an increase from foreign currency translation of 0.8%, offset by a decrease due to divestitures of 3.5%. For the six months ended January 31, 2024, net sales increased by 0.9% to $654.6 million, driven by organic sales growth of 2.2% and an increase from foreign currency translation of 1.1%, which was partially offset by a decrease of 2.4% due to divestitures.

Gross margin increased by 3.6% to $162.1 million in the three months ended January 31, 2024, and by 7.1% to $333.8 million in the six months ended January 31, 2024. Operating income increased by 10.5% to $53.9 million for the three months and by 13.5% to $113.7 million for the six months ended January 31, 2024, compared to the same periods in the prior year.

In the Americas & Asia segment, net sales declined by 3.8% to $211.6 million for the three months ended January 31, 2024, and by 1.2% to $433.3 million for the six months ended January 31, 2024, driven by organic sales growth of 1.2% and 2.3%, respectively. Segment profit for the Americas & Asia segment increased by 9.3% to $43.9 million for the three months and by 15.3% to $93.8 million for the six months ended January 31, 2024, compared to the same periods in the prior year.

Overall, Brady Corporation's financial performance has shown resilience, with a focus on organic sales growth, improved gross margin, and increased operating income, despite challenges such as inflationary pressures and supply chain disruptions. Following these announcements, the company's shares moved -5.3%, and are now trading at a price of $59.24. For more information, read the company's full 10-Q submission here.

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