Oil-Dri Corporation Reports 13% Revenue Growth to $244.9 Million for Six Months Ending January 31, 2025

Oil-Dri Corporation of America reported a significant increase in financial performance for the six months ending January 31, 2025, with net sales reaching $244.9 million, a 13% increase from $217.1 million in the same period the previous year. The company's gross profit also rose to $75.2 million, reflecting a 21% increase compared to $61.9 million in the prior year. This growth was attributed to stronger demand across both the Business to Business Products Group and the Retail and Wholesale Products Group, alongside favorable product mix and higher pricing.

The company's income from operations for the six months ended January 31, 2025, was $38.7 million, up 37% from $28.3 million in the previous year. Net income increased by 27% to $29.3 million, compared to $23.1 million in the same period last year. Earnings per share for common stock rose to $2.17 from $1.72, while diluted earnings per share increased to $2.01 from $1.60. The increase in profitability was supported by a gross margin improvement to 30.7%, up from 28.5% in the prior year, despite a 5% rise in the overall cost of goods sold.

Operationally, Oil-Dri has seen growth in both its segments. The Business to Business Products Group reported net sales of $91.8 million, a 22% increase from $75.4 million, driven by demand for fluids purification and animal health products. The Retail and Wholesale Products Group also experienced an 8% increase in net sales to $153 million, primarily due to the introduction of new crystal cat litter products. The company has continued to expand its market presence, with foreign operations contributing to 4% of total net sales, although net sales from foreign subsidiaries decreased by 12% compared to the previous year.

In terms of strategic developments, Oil-Dri announced a two-for-one stock split effective January 3, 2025, which was aimed at increasing liquidity and making shares more accessible to a broader range of investors. The company also reported ongoing integration efforts following its acquisition of Ultra Pet Company, which has contributed to increased SG&A expenses but is expected to enhance long-term growth. As of January 31, 2025, the company had a total employee headcount of 1,200, reflecting a slight increase from the previous year.

Looking ahead, Oil-Dri remains optimistic about its growth trajectory, citing strong demand for its products and ongoing investments in operational efficiencies. The company anticipates continued revenue growth driven by favorable market conditions and strategic product introductions. However, management has acknowledged potential risks related to market fluctuations and operational costs, which could impact future performance.