Oil-Dri Posts Record $117.7M Q2 Sales; EPS Falls 2% to $0.87 After Winter Storm
Oil-Dri reported a record Q2 net sales of $117.7 million, a 1% increase year-over-year, while operating income fell 10% to $15.7 million and diluted EPS declined 2% to $0.87. Winter Storm Fern forced plant shutdowns and delayed shipments, yet the company repurchased over 150,000 shares and targets higher annual net income.
1. Second Quarter Financial Performance
Oil-Dri delivered Q2 net sales of $117.7 million, a 1% year-over-year increase, while gross profit declined 6% to $32.3 million. Operating income fell 10% to $15.7 million, and net income decreased 3% to $12.6 million, yielding diluted EPS of $0.87, down 2%.
2. Winter Storm Fern Disruption
In January, Winter Storm Fern caused plant shutdowns across southern and eastern regions, reducing production and delaying shipments. This weather-related disruption shifted a meaningful portion of revenues into the next reporting period and pressured fixed cost absorption.
3. Share Repurchases and Outlook
The company repurchased over 150,000 shares year-to-date, reflecting confidence in cash flow and strategic priorities. Management remains on track with the annual plan and anticipates surpassing last year’s total net income if current trends continue.
4. Segment Performance
B2B Products Group net sales were $42.0 million, down 3%, as agricultural gains were offset by a 32% decline at Amlan International. Retail & Wholesale sales rose 3% to $75.8 million, led by co-packaged and cat litter products.