Wd-40 Company · NASDAQ:WDFC
Wd-40 — Q4 2024 Earnings Presentation
38 slides from Wd-40's earnings presentation, Oct 17, 2024
Slide 1: Q4 & FY24 Earnings Results
Q4 & FY24 Earnings Results OCTOBER 17, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Historical financial and operating data in this presentation reflect the consolidated results of WD-40 Company and its subsidiaries (collectively, the “Company”). The Company markets maintenance products (“MP”) under the WD-40®, 3-IN-ONE® and GT85® brand names. The WD-40 b
Slide 3: Q4 FY24 Results
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Slide 4: Q4 FY24 Results
Q4 FY24 Results ($M except EPS, gross margin and % change) Financial Results Q4 FY24 Q4 FY23 % Change As reported Net Sales $156.0 $140.5 11% Gross Margin 54.1% 51.4% +270 bps Operating Income $24.1 $23.2 4% Net Income $16.8 $16.6 1% EPS (Diluted) $1.23 $1.21 2% • Non-GAAP constant currency net sale
Slide 5: Americas Segment
Americas Segment Americas – Q4 FY23 vs. Q4 FY24 • Total reported segment sales 6% • Segment = 51% of global net sales • WD-40® Multi-Use Product sales 7% • WD-40 Specialist ® sales 6% • In constant currency sales 7% • Maintenance product (MP) sales: • U.S. MP sales 3% • Latin America MP sal
Slide 6: EIMEA Segment
EIMEA Segment EIMEA – Q4 FY23 vs. Q4 FY24 • Total reported segment sales 16% • Segment = 37% of global net sales • WD-40® Multi-Use Product sales 16% • WD-40 Specialist ® sales 13% • In constant currency sales 15% • Maintenance product (MP) sales: • EIMEA MP sales 15% • Gross margin 55.5%
Slide 7: Asia-Pacific Segment
Asia-Pacific Segment Asia-Pacific – Q4 FY23 vs. Q4 FY24 • Total reported Asia-Pacific sales 21% • Segment = 12% of global net sales • WD-40® Multi-Use Product sales 26% • WD-40 Specialist ® sales 24% • In constant currency sales 22% • Maintenance product (MP) sales: • Australia MP sales 2%
Slide 8: FY24 Results
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Slide 9: FY24 Results
FY24 Results ($M except EPS, gross margin and % change) Financial Results FY24 FY23 % Change As reported Net Sales $590.6 $537.3 10% Gross Margin 53.4% 51.0% +240 bps Operating Income $96.4 $89.7 7% Net Income $69.6 $66.0 6% EPS (Diluted) $5.11 $4.83 6% • Non-GAAP constant currency net sales were $5
Slide 10: Americas Segment
Americas Segment Americas – FY23 vs. FY24 • Total reported segment sales 6% • Segment = 48% of global net sales • WD-40® Multi-Use Product sales 7% • WD-40 Specialist ® sales 6% • In constant currency sales 5% • Maintenance product (MP) sales: • U.S. MP sales ▲ 1% • Latin America MP sales ▲
Slide 11: EIMEA Segment
EIMEA Segment EIMEA – FY23 vs. FY24 • Total reported segment sales 16% • Segment = 37% of global net sales • WD-40® Multi-Use Product sales 18% • WD-40 Specialist ® sales 14% • In constant currency sales 12% • Maintenance product (MP) sales: • EIMEA MP sales 17% • Gross margin 54.7% 250
Slide 12: Asia-Pacific Segment
Asia-Pacific Segment Asia-Pacific – FY23 vs. FY24 • Total reported Asia-Pacific sales 10% • Segment = 15% of global net sales • WD-40® Multi-Use Product sales 9% • WD-40 Specialist ® sales 17% • In constant currency sales 11% • Maintenance product (MP) sales: • Australia MP sales 1% • Chin
Slide 13: Growth Aspirations
Growth Aspirations 13
Slide 14: Strong Historical Growth with Clear Runway Ahead
Strong Historical Growth with Clear Runway Ahead Maintenance Products 10-year Net Sales 558 CAGR 511 476 432 359 381 369 6.7% 323 339 EIMEA 305 6.9% APAC 6.1% Americas 1. FY24 maintenance prod uct net sales presented as r eported; all p rior ye ars pr ese nte d o n a constant curre ncy basis using F
Slide 15: Long-Term Growth Targets for Maintenance Products
Long-Term Growth Targets for Maintenance Products Non-GAAP Constant Currency Long-Term Growth Ambition By Segment Americas EIMEA APAC Total Company 48% 37% 15% CAGR Target of global net sales* of global net sales* of global net sales* mid-to-high CAGR Target CAGR Target CAGR Target single digits 5-8
Slide 16: Our Four-by-Four Strategic Framework
Our Four-by-Four Strategic Framework Four Must-Win Battles 01 02 03 04 Lead Geographic Accelerate Drive WD-40 Turbo-Charge Expansion Premiumization Specialist Growth Digital Commerce Four Strategic Enablers 01 Ensure a People-First Mindset 02 Build a Sustainable Business For the Future 03 Achieve Op
Slide 17: Must-Win Battles – Fiscal Year
Must-Win Battles – Fiscal Year Must-Win Battles Fiscal Year Results 01 02 03 04 Lead Geographic Accelerate Drive WD-40 Turbo-Charge Expansion Premiumization Specialist Growth Digital Commerce • WD-40 Multi-Use • WD-40 Smart Straw • WD-40 Specialist 11% • E-commerce sales Product 11% and EZ Reach
Slide 18: Business Model
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Slide 19: Our Business Model Enables Long-term Value Creation
Our Business Model Enables Long-term Value Creation Generate Mid-to-High-Single GDP+ Digit Revenue Growth 50→55% Achieve Gross Margin Target ROIC 25%+ 35→30% Manage Cost Of Doing Business1 Annual dividends targeted at >50% 20→25% Drive Adjusted EBITDA Margin 1 of earnings Low Capital Invest in Brand
Slide 20: Gross Margin Detail – Q4 FY24
Gross Margin Detail – Q4 FY24 Gross margin increased by 270 basis points over prior Gross Margin Trend year period primarily due to the following favorable impacts: Gross Margin Drivers Change vs. Prior Year As reported (basis points) Lower costs of aerosol cans +100 Sales mix and other misc. mix im
Slide 21: Gross Margin Detail – FY24
Gross Margin Detail – FY24 Gross margin increased by 240 basis points over prior Gross Margin Trend year primarily due to the following favorable impacts: Gross Margin Drivers Change vs. Prior Year As reported (basis points) Sales mix and other misc. mix impacts +130 Lower costs of specialty chemica
Slide 22: What Makes Up the Cost of a Can?
What Makes Up the Cost of a Can? Approximate Cost Breakdown Of A Typical Can Of WD-40® Multi-Use Product Manufactured in the United States FY24 Corrugate Petroleum-Based Specialty Plastic Manufacturing Fees Tin-Plate Can Data a s of A ugust 202 4. Represents a ver age input costs over 7-month period
Slide 23: FY25 Guidance
FY25 Guidance a —>; > - %
Slide 24: Non-GAAP FY24 Results – Pro Forma
Non-GAAP FY24 Results – Pro Forma Pro forma, excluding the full fiscal year financial impact of certain of the homecare and cleaning products classified as assets held for sale subsequent to August 31, 2024 ($M except EPS, gross margin and % change) Financial Results FY24 FY23 % Change As reported N
Slide 25: Fiscal Year 2025 Guidance - Pro Forma
Fiscal Year 2025 Guidance - Pro Forma Pro forma, excluding the full fiscal year financial impact of certain of the homecare and cleaning products classified as assets held for sale subsequent to August 31, 2024 Sales Growth Between 6% and 11% (Constant Currency Basis) Over 2024 pro forma results Net
Slide 26: Appendix
Appendix 26
Slide 27: Sales Impact – Consolidated Net Sales Changes
Sales Impact – Consolidated Net Sales Changes Changes from Prior Year Fiscal Period ($ in millions) Price, Volume and FX Impact Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Increase (decrease) in average selling price(1) $ 4.1 $ 3.6 $ (1.2) $ (2.3) $ 4.2 Increase in sales volume(1) $ 7.6 $ 2.3 $ 13.1 $ 18.2
Slide 28: “Constant Currency” – Q4 FY24
Foreign Currency Translation Impact or “Constant Currency” – Q4 FY24 ($ in millions; except EPS, gross margin and % change) Financial Results Q4 FY24 Q4 FY23 % Change As reported Net Sales $156.0 $140.5 11% Gross Margin 54.1% 51.4% +270 bps Operating Income $24.1 $23.2 4% Net Income $16.8 $16.6 1% E
Slide 29: “Constant Currency” – FY24
Foreign Currency Translation Impact or “Constant Currency” – FY24 ($ in millions; except EPS, gross margin and % change) Financial Results FY24 FY23 % Change As reported Net Sales $590.6 $537.3 10% Gross Margin 53.4% 51.0% +240 bps Operating Income $96.4 $89.7 7% Net Income $69.6 $66.0 6% EPS (Dilut
Slide 30: Foreign Currency Impact
Foreign Currency Impact Transaction Impact Translation Impact Conversion from transaction Translation from functional currency to subsidiaries’ functional currency to WD-40 Company’s currency reporting currency Transaction currency Functional currency Reporting currency Currency in which sales, Main
Slide 31: Additional Foreign Currency Exchange Impact – Q4 FY24
Additional Foreign Currency Exchange Impact – Q4 FY24 Q4 FY24 Net Sales (In millions) In total, changes in FX rates decreased net sales by ~$1.1M in Q4 FY24 31
Slide 32: Additional Foreign Currency Exchange Impact – FY24
Additional Foreign Currency Exchange Impact – FY24 FY24 Net Sales (In millions) In total, changes in FX rates increased net sales by ~$4.7M in FY24 32
Slide 33: Q4 FY24 Non-GAAP Reconciliation
Q4 FY24 Non-GAAP Reconciliation This presentation contains certain non-GAAP (accounting principles generally accepted in the United States of America) measures, that management believes provide our stockholders with additional insights into WD-40 Company’s results of operations and how it runs its b
Slide 34: FY24 Non-GAAP Reconciliation
FY24 Non-GAAP Reconciliation This presentation contains certain non-GAAP (accounting principles generally accepted in the United States of America) measures, that management believes provide our stockholders with additional insights into WD-40 Company’s results of operations and how it runs its busi
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation In order to show the impact of changes in foreign currency exchange rates on our results of operations, we have included constant currency disclosures, where necessary, in this presentation. Constant currency disclosures represent the translation of our current fiscal year re
Slide 36: Non-GAAP Reconciliation
Non-GAAP Reconciliation This presentation contains certain non-GAAP (generally accepted accounting principles in the United States of America) measures, that management believes provide our stockholders with additional insights into WD-40 Company’s results of operations and how it runs its business.
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation This presentation contains certain non-GAAP (generally accepted accounting principles in the United States of America) measures, that management believes provide our stockholders with additional insights into WD-40 Company’s results of operations and how it runs its business.
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