“We live in a world that is volatile, uncertain, complex and full of ambiguity. Despite all the events taking place in the world today the tribe delivered a solid end to fiscal year 2016,” said Garry Ridge, WD-40 Company’s president and chief executive officer. WD-40 reported financial results for the fourth quarter and fiscal year ended August 31, 2016, this week.
“During the full fiscal year we generated a significant amount of our sales in currencies other than the U.S. dollar, therefore foreign currency exchange headwinds had a significant impact our reported results. On a constant currency basis net sales for the full fiscal year were about USD396 million, up 5% compared to last fiscal year. The tribe has never been more aligned and focused. We are clear about our purpose. We know why and how we do what we do, and our strategic initiatives focus us on how we use our time, talent, treasure and technology to achieve our long-term goals,” concluded Ridge.
For fiscal year 2017, WD-40 is projecting between 4% and 6% increase in sales, with net sales expected to be between USD395 million and USD404 million.
Financial Highlights and Summary
- Total net sales for the fourth quarter were USD97.2 million, an increase of 6% compared to the same period a year ago. Net sales for the full fiscal year were USD380.7 million, up 1%.
- Translation of WD-40’s foreign subsidiary results to U.S. dollars had an unfavorable impact on sales for the current quarter and full fiscal year. On a constant currency basis, total net sales would have been USD102.9 million for the fourth quarter and USD395.9 million for the full fiscal year.
- Net income for the fourth quarter was USD14.2 million, up 21% from the same period a year ago. For the full fiscal year, net income was USD52.6 million, up 17%.
- Gross margin was 57.4% in the fourth quarter compared to 54.3% during the same year-ago period. Full fiscal year gross margin was 56.3%, compared to 52.9% in the prior fiscal year.
- Selling, general and administrative expenses were up 17% in the fourth quarter to USD32.0 million compared to the same period a year ago. For the full year, selling, general and administrative expenses were up 8%.
- Advertising and sales promotion expenses were down 9% in the fourth quarter to USD5.4 million compared to the same period a year ago. For the year, advertising and sales promotion were down 3% to USD22.3 million.
- Net sales of maintenance products, which are considered the primary growth focus for WD-40, increased 8% in the fourth quarter compared to the same period a year ago. This sales growth was primarily attributable to strong WD-40 multi-use product sales in the United States and its European distributor markets, as well as a 27% increase in global sales of WD-40 Specialist® compared to the fourth quarter of last year.
Based in San Diego, Calif., U.S.A., WD-40 markets its maintenance products and homecare and cleaning products under the following well-known brands: WD-40®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava® and Solvol®.