CHICAGO - Oil-Dri Corporation of America (NYSE:ODC) reported record fourth quarter revenue but lower profit as higher costs offset sales gains. The stock rose 0.85% following the results.
The sorbent mineral products maker posted Q4 revenue of $113.7 million, up 6% YoY and marking the 13th consecutive quarter of YoY sales growth. However, net income fell 28% to $8.5 million, or $1.17 per diluted share, compared to $11.9 million, or $1.67 per share, in the year-ago quarter.
The revenue increase was driven by the acquisition of Ultra Pet Company, higher pricing, and increased demand for fluid purification and animal health products. The Ultra Pet acquisition contributed $4.8 million in sales.
Despite record gross profit of $33.0 million, up 9% YoY, higher costs weighed on the bottom line. Domestic cost of goods sold per ton rose 10% YoY due to higher freight costs, inventory adjustments related to the Ultra Pet acquisition, and increased packaging costs.
"I am very pleased with our fourth quarter and fiscal year 2024 results which include our newly acquired silica gel-based crystal cat litter business, Ultra Pet Company, Inc.," said CEO Daniel S. Jaffee. "We set new records in consolidated net sales and gross profit for both periods."
For the full fiscal year 2024, Oil-Dri reported record revenue of $437.6 million, up 6% YoY, and record net income of $39.4 million, up 33% YoY.
The company said it expects advertising costs in fiscal 2025 to be lower than fiscal 2024, but additional expenses related to the Ultra Pet integration are expected in Q1 2025.
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