The latest 10-Q report from Brady Corporation, a global manufacturer and supplier of identification solutions and workplace safety products, reveals a comprehensive overview of the company's financial condition and operational performance. Brady operates through two reportable segments: Americas & Asia and Europe & Australia, offering a broad range of identification and safety products across various industries. The company's strategic initiatives for fiscal 2025 include investing in organic growth, enhancing customer service, expanding sales capabilities, and maintaining profitability amid supply chain disruptions and inflationary pressures.
In terms of financial results, for the three months ended October 31, 2024, Brady reported net sales of $377.1 million, marking a 13.6% increase from the same period in the prior year. The growth was driven by organic sales growth of 3.6%, sales growth from acquisitions of 9.9%, and an increase from foreign currency translation of 1.2%, partially offset by a decrease of 1.1% due to divestitures. Gross margin increased 10.5% to $189.7 million, although as a percentage of net sales, it decreased to 50.3% compared to 51.7% in the same period in the prior year. Operating income decreased slightly by 1.4% to $58.9 million, impacted by incremental amortization expense from acquisitions and non-recurring acquisition-related and other costs.
The company's segment profit for the Americas & Asia and Europe & Australia segments was $54.9 million and $13.1 million, respectively. Americas & Asia segment net sales increased 10.7% to $245.4 million, driven by organic sales growth of 5.1% and sales growth from acquisitions of 7.4%. Meanwhile, Europe & Australia segment net sales increased 19.3% to $131.6 million, consisting of sales growth from acquisitions of 15.0% and organic sales growth of 0.7%.
The market has reacted to these announcements by moving the company's shares -4.6% to a price of $70.79. Check out the company's full 10-Q submission here.
