Wd-40 Company · NASDAQ:WDFC
Wd-40 — Q3 2024 Earnings Presentation
26 slides from Wd-40's earnings presentation, Jul 10, 2024
Slide 1: Q3 FY24 Earnings Results
Q3 FY24 Earnings Results JULY 10, 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: Q3 FY24 Results
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Slide 4: Q3 FY24 Results
Q3 FY24 Results ($M except EPS, gross margin and % change) Financial Results Q3 FY24 Q3 FY23 % Change As reported Net Sales $155.0 $141.7 9% Gross Margin 53.1% 50.6% +250 bps Operating Income $27.2 $25.7 6% Net Income $19.8 $18.9 5% EPS (Diluted) $1.46 $1.38 6% • Non-GAAP constant currency net sales
Slide 5: Americas Segment
Americas Segment Americas – Q3 FY23 vs. Q3 FY24 • Total reported segment sales 6% • Segment = 49% of global net sales • WD-40® Multi-Use Product sales 7% • WD-40 Specialist ® sales 10% • In constant currency sales 5% • Maintenance product (MP) sales: • U.S. MP sales 1% • Latin America MP s
Slide 6: EIMEA Segment
EIMEA Segment EIMEA – Q3 FY23 vs. Q3 FY24 • Total reported segment sales 13% • Segment = 38% of global net sales • WD-40® Multi-Use Product sales 17% • WD-40 Specialist ® sales 11% • In constant currency sales 10% • Maintenance product (MP) sales: • EIMEA MP sales 15% • Gross margin 54.8%
Slide 7: Asia-Pacific Segment
Asia-Pacific Segment Asia-Pacific – Q3 FY23 vs. Q3 FY24 • Total reported Asia-Pacific sales 14% • Segment = 13% of global net sales • WD-40® Multi-Use Product sales 11% • WD-40 Specialist ® sales 30% • In constant currency sales 16% • Maintenance product (MP) sales: • Australia MP sales 2%
Slide 8: Growth Aspirations
Growth Aspirations aes h| Me 4%
Slide 9: Strong Historical Growth with Clear Runway Ahead
Strong Historical Growth with Clear Runway Ahead Maintenance Products 504 10-year Sales CAGR 469 425 318 335 355 377 364 6.0% 294 300 EIMEA 6.4% APAC 5.7% Americas 1. FY23 maintenance product net sales presented as reported; all prior years presented on a constant currency basis using FY23 foreign c
Slide 10: 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 50% 36% 14% 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 11: 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 12: Must-Win Battles – Year-to-Date
Must-Win Battles – Year-to-Date Must-Win Battles YTD 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 • Amer
Slide 13: Business Model
Business Model 13
Slide 14: 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 Business Annual dividends targeted at >50% 20→25% Drive Adjusted EBITDA Margin of earnings Low Capital Invest in Brands a
Slide 15: Gross Margin Detail – Q3 FY24
Gross Margin Detail – Q3 FY24 Gross margin improved by 250 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) Sales mix and other misc. mix impacts +160 Lower costs of specialt
Slide 16: 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 FY23 Corrugate Petroleum-Based Specialty Plastic Manufacturing Fees Tin-Plate Can Data as of August 2023. Represents average input costs over 6-month period of a
Slide 17: FY 2024 Guidance
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Slide 18: Reiterated Fiscal Year 2024 Guidance
Reiterated Fiscal Year 2024 Guidance Sales Growth Between 6% and 12% (Constant Currency Basis) Net Sales Between $570 and $600 million (Constant Currency Basis) Gross Margin Between 51.5% and 53% A&P Investment Between 5% and 6% of net sales Provision For Income Tax Between 23% and 24% Net Income In
Slide 19: Appendix
Appendix 19
Slide 20: Sales Impact – Consolidated Net Sales Changes
Sales Impact – Consolidated Net Sales Changes Changes from Prior Year Fiscal Period ($ in millions) Year to Price, Volume and FX Impact Q1 FY24 Q2 FY24 Q3 FY24 Date Increase (decrease) in average selling price(1) $ 4.1 $ 3.6 $ (1.2) $ 6.5 Increase in sales volume(1) $ 7.6 $ 2.3 $ 13.1 $ 23.0 Currenc
Slide 21: Foreign Currency Translation Impact or "Constant Currency" – Q3 FY24
Foreign Currency Translation Impact or “Constant Currency” – Q3 FY24 ($ in millions; except EPS, gross margin and % change) Financial Results Q3 FY24 Q3 FY23 % Change As reported Net Sales $155.0 $141.7 9% Gross Margin 53.1% 50.6% +250 bps Operating Income $27.2 $25.7 6% Net Income $19.8 $18.9 5% EP
Slide 22: 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 23: Additional Foreign Currency Exchange Impact – Q3 FY24
Additional Foreign Currency Exchange Impact – Q3 FY24 Q3 FY24 Net Sales (In millions) In total, changes in FX rates increased net sales by ~$0.4M in Q3 FY24 23
Slide 24: 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 25: 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
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