NYSE$ODC

Oil-Dri Corporation of America · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Oil-Dri reported record financial results driven by increased sales and improved gross margins.

Oil-Dri Corporation of America reported record fourth-quarter and fiscal year 2023 results, with consolidated net sales reaching an all-time high. The company saw significant increases in net income and gross profit, driven by pricing actions and strong performance in both the Retail & Wholesale and Business to Business segments. The company also launched Cat’s Pride Antibacterial Clumping Litter.

  • Consolidated net sales reached a record $107.4 million, a 15% increase year-over-year.
  • Net income attributable to Oil-Dri was $11.9 million, a 129% increase year-over-year.
  • Gross margins climbed to 28% in fiscal 2023 from 19% in fiscal 2022.
  • B2B Products Group revenues reached an all-time high of $38.1 million, an 18% gain over the prior year.

Headline financials

Total Revenue

$107M

Previous: $93.2M+15.3%
EPS (adj)

$1.69

Previous: $0.77+119.5%
Gross Margin

28.0%

No prior period
Net Income

$11.9M

Previous: $5.19M+129.7%
Operating Income

$12.7M

Previous: $6.49M+96.0%
Gross Profit

$30.4M

Previous: $17.5M+74.1%
Cash & Equivalents

$31.8M

Previous: $16.3M+94.8%
Total Assets

$286M

Previous: $250M+14.7%

Revenue & EPS history

Oil-Dri · Revenue · Quarterly

$107M

Q4 2023+15.3%vs Q4 2022

Revenue by segment

Oil-Dri · $107M total across 2 segments · Q4 2023

  • Retail and Wholesale
    $69.2M+13.7%
  • Business to Business
    $38.1M+18.3%

Forward guidance

Oil-Dri plans to continue its strong momentum, invest in its infrastructure, and exceed customer expectations with its portfolio of value-added clay products in fiscal year 2024. The company expects advertising expenses for the upcoming fiscal year 2024 to be higher than fiscal year 2023 and equally spread over four quarters.

Tailwinds

  • Continue strong momentum
  • Invest in company infrastructure
  • Exceed customer expectations
  • Improve sales in North America through higher prices and increased distribution of Sorbiam products
  • Expand distribution of lightweight cat litter, fluids purification, agricultural, and animal health products.

Headwinds

  • Sales were soft in China resulting from the transition to a new distribution strategy.
  • Total domestic cat litter volumes declined in the fourth quarter from the prior year.
  • Animal health product sales were soft.
  • Sales of Amlan’s products in Mexico decreased when compared to last year.
  • There is still progress to be made to return to historical gross margin levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+1.0%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+4.2%

Avg return

30 days after

58%

32 / 55 earnings

Positive

+19.9%

Q3 2023

Best reaction

-17.1%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+18.4%+13.7%
Q2 2026+3.7%-5.1%+12.2%
Q1 2026-12.7%-4.4%-3.9%
Q4 2025+8.0%-0.5%-6.5%
Q3 2025+0.0%+1.5%+5.8%
Q2 2025+9.0%+6.9%-5.0%
Q1 2025+18.4%+28.0%+24.2%
Q4 2024+5.9%+4.8%+12.5%
Q3 2024-15.7%-13.8%-26.7%
Q2 2024-1.1%-0.0%-1.2%
Q1 2024+9.6%+16.7%+13.4%
Q4 2023-9.8%-6.9%-8.5%
Q3 2023+19.9%+27.6%+60.2%
Q2 2023+5.3%+4.4%+7.4%
Q1 2023+5.0%+3.1%+5.9%
Q4 2022+13.1%+18.0%+35.5%
Q3 2022+2.6%+8.6%+22.3%
Q2 2022-2.6%+4.1%-2.0%
Q1 2022+1.8%-1.0%+4.6%
Q4 2021+0.5%+0.4%+0.3%
Q3 2021-4.8%-6.2%-8.3%
Q2 2021+0.2%-1.1%-7.5%
Q1 2021+1.0%+4.3%+0.8%
Q4 2020-5.0%-2.2%-11.3%
Q3 2020-4.2%-8.6%-8.1%
Q2 2020+1.1%-0.6%+2.0%
Q1 2020+1.1%+5.5%-0.1%
Q4 2019+2.5%+1.8%+13.4%
Q3 2019+3.8%-1.0%+19.5%
Q2 2019-0.3%+10.4%+16.7%
Q1 2019-4.3%-5.0%-3.1%
Q4 2018-0.9%-12.9%-5.1%
Q3 2018-3.1%-7.1%-1.9%
Q2 2018+0.3%+4.5%+9.3%
Q1 2018+0.6%+0.7%-7.5%
Q4 2017-17.1%-17.4%-16.5%
Q3 2017+6.9%+13.1%+20.1%
Q2 2017+1.4%+6.6%+7.8%
Q1 2017+2.3%-0.6%-8.4%
Q4 2016-1.3%+1.1%-2.7%
Q3 2016+1.2%+4.8%+7.2%
Q2 2016-9.9%
Q1 2015+8.3%
Q3 2015-3.4%
Q2 2014+1.4%
Q4 2012-1.5%
Q2 2012+2.3%
Q1 2012-1.9%
Q4 2011+4.1%
Q3 2011+0.6%
Q2 2011-3.1%
Q1 2010-2.8%
Q4 2010-2.6%
Q3 2010-0.4%
Q2 2009+1.8%

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