Brady Corporation has recently released its 10-Q report, detailing its activities and financial performance. The company, incorporated in 1914 and headquartered in Milwaukee, Wisconsin, manufactures and supplies identification solutions and workplace safety products globally. Its products include safety signs, traffic control items, labeling systems, spill control products, personal protection equipment, and healthcare identification products, among others. Brady serves various industries through distributors, direct sales, and digital channels.
In the report's "ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS," Brady Corporation's financial performance is analyzed. For the three months ended January 31, 2025, net sales increased by 10.6% to $356.7 million compared to the same period in the prior year. This growth consisted of organic sales growth of 2.6% and sales growth from acquisitions of 10.2%, partially offset by a decrease from foreign currency translation of 2.2%. For the six months ended January 31, 2025, net sales increased by 12.1% to $733.7 million compared to the same period in the prior year. This growth consisted of organic sales growth of 3.1% and sales growth from acquisitions of 10.0%, partially offset by a decrease from foreign currency translation of 0.5% and a decrease of 0.5% due to a divestiture.
The gross margin increased to $175.8 million in the three months ended January 31, 2025, from $162.1 million in the same period in the prior year. However, as a percentage of net sales, gross margin decreased to 49.3% from 50.2%. For the six months ended January 31, 2025, the gross margin increased to $365.5 million from $333.8 million in the same period in the prior year, but as a percentage of net sales, it decreased to 49.8% from 51.0%.
Operating income decreased by 5.0% to $51.2 million in the three months ended January 31, 2025, and by 3.1% to $110.2 million in the six months ended January 31, 2025, compared to the same periods in the prior year. The decrease in operating income was primarily due to non-recurring acquisition-related costs and incremental amortization expense related to acquired businesses, as well as facility closure and other reorganization costs.
Net income for the three months ended January 31, 2025, was $40.3 million, down from $43.6 million in the same period in the prior year. For the six months ended January 31, 2025, net income was $87.1 million, down from $90.9 million in the same period in the prior year.
These figures provide insight into Brady Corporation's financial performance and the factors affecting its operations and profitability. As a result of these announcements, the company's shares have moved -7.4% on the market, and are now trading at a price of $69.08. Check out the company's full 10-Q submission here.
