WD-40 Co (WDFC, Financial) released its earnings report for the fourth quarter and fiscal year ended August 31, 2023, on October 19, 2023. The company reported an 8% increase in total net sales for the fourth quarter, reaching $140.5 million compared to the prior year fiscal quarter. For the full fiscal year, total net sales grew by 4% to $537.3 million compared to the prior fiscal year.
Financial Performance Highlights
WD-40 Co (WDFC, Financial) reported a net income of $16.6 million for the fourth quarter, marking a 12% increase compared to the prior year fiscal quarter. However, the full fiscal year saw a 2% decrease in net income, totaling $66.0 million.
The company's diluted earnings per share were $1.21 in the fourth quarter, up from $1.08 in the prior year fiscal quarter. For the full fiscal year, diluted earnings per share were $4.83, slightly down from $4.90 for the prior fiscal year.
Gross margin for the fourth quarter was 51.4%, an improvement from 47.4% in the prior year fiscal quarter. For the full fiscal year, gross margin was 51.0%, up from 49.1% in the prior fiscal year.
Net Sales by Segment
For the fourth quarter, net sales by segment as a percentage of total net sales were as follows: Americas, 53%; EMEA, 36%; and Asia-Pacific, 11%. Within the Americas, net sales increased 10% in the fourth quarter compared to the prior year fiscal quarter, primarily due to higher sales of maintenance products in the United States.
Dividend and Share Repurchase Update
On October 6, 2023, the company's board of directors declared a regular quarterly dividend of $0.83 per share. Additionally, during fiscal year 2023, the company repurchased 55,920 shares at an average price of $186.09 per share, for a total cost of $10.4 million.
Fiscal Year 2024 Guidance
WD-40 Co (WDFC, Financial) provided guidance for fiscal year 2024, projecting net sales growth between 6 and 12 percent. The company expects gross margin for the full year to be between 51 and 53 percent, and net income is projected to be between $65 million and $70 million.
