Oil-Dri Corporation of America (NYSE: ODC) has announced its results for the third quarter and first nine months of fiscal year 2024, highlighting record sales and gross profit. The company reported a 1% increase in net sales for the third quarter of 2024, reaching $106.8 million, marking the 12th consecutive quarter of year-over-year sales growth. The gross profit for the same period experienced a significant 10% increase, reaching $30.1 million, with gross margins expanding to 28% from 26% in the previous fiscal year.
The consolidated net income attributable to Oil-Dri decreased by 9% to $7.8 million for the third quarter of fiscal 2024, compared to $8.5 million for the same period in the prior year. However, the net income excluding nonrecurring events showed a 42% decrease to $7.8 million from $13.3 million for the same period. Diluted earnings per share (EPS) for the third quarter of fiscal 2024 stood at $1.07, reflecting a 14% decrease from the previous year. Excluding nonrecurring events, diluted EPS dropped by 45% to $1.07 from $1.94 for the same period.
The Business to Business (B2B) segment reported a 2% increase in net sales to $36.2 million for the third quarter of fiscal 2024, while the Retail and Wholesale (R&W) segment saw a 1% increase in net sales, reaching $70.6 million for the same period. Both segments also reported increases in their respective operating incomes, with B2B's operating income growing by 8% and R&W's by 1% for the third quarter of fiscal 2024 compared to the prior year.
On May 1, 2024, Oil-Dri completed the acquisition of Ultra Pet Company, Inc. for $46 million. The acquisition is expected to strengthen Oil-Dri's position in the cat litter market, particularly in the rapidly growing crystal litter segment. The company anticipates the acquisition to be immediately accretive to its earnings and create long-term value for its shareholders.
Oil-Dri's president and chief executive officer, Daniel S. Jaffee, emphasized the company's achievements in setting new records for sales and gross profit in the third quarter, driven by the continued growth of its fluids purification and cat litter businesses. He also expressed excitement about the acquisition of Ultra Pet, which is expected to fuel the company's entry into the rapidly growing crystal cat litter market.
The company's efforts in advertising and investment in its teammates were highlighted, with expectations that these investments will contribute to future growth. Additionally, the successful acquisition of Ultra Pet is expected to drive further growth and create value for Oil-Dri's shareholders.
Oil-Dri Corporation of America is a leading manufacturer and supplier of specialty sorbent products for various markets, including pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial, and automotive sectors. With over 80 years of experience, the company continues to fulfill its mission to create value from sorbent minerals. Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $82.94. If you want to know more, read the company's complete 8-K report here.
