WD-40 says its net sales jumped 12% in the fiscal second quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Apr 8, 2021
  • WD-40 says its net sales jumped 12% in the fiscal second quarter.
  • The American manufacturer reports £12.52 million of profit in Q2.
  • WD-40 shares slid close to 7% in extended trading on Thursday.

WD-40 Co. (NASDAQ: WDFC) said on Thursday that sales in the fiscal second quarter remained robust. The company, however, struggled to meet demand in recent months due to supply chain problems.

WD-40 shares slid close to 7% in extended trading on Thursday. The stock is now exchanging hands at £209 per share versus a much lower £188 per share at the start of the year. If you want to invest in the stock market online, you’ll need a reliable stockbroker – here’s a list of the top few to make selection easier for you.

WD-40 reports £12.52 million of profit

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WD-40 reported a 12% increase in its net sales to £81.47 million in the second quarter. The company attributed the increase to maintenance products that posted a 13% jump in Q2 net sales. CEO Garry Ridge said:

“Despite these supply chain challenges in the United States, we continue to experience very strong point-of-sale end-user demand for our maintenance products. We are working to address the supply chain challenges, and there is a recovery plan underway which we expect will result in improved conditions in the back half of the year.” 

The American manufacturer said that its profit in the recent quarter came in at £12.52 million that translates to 90 pence per share. In the same quarter last year, its profit was capped at a lower £10.41 million, or 76 pence per share.  

For 2021, the Nasdaq-listed company noted £172.19 million of year-to-date net sales and £29.71 million of year-to-date net income. The California-based company said gross margin stood at 55.4% in Q2, compared to a lower 53.6% last year.

In separate news from the U.S., Impossible Foods Inc. expressed plans of a public listing on Thursday that could value it at roughly £7.28 billion.

Other prominent figures in WD-40’s earnings report

Other notable figures in WD-40’s earnings report on Thursday include a 19% year over year increase in selling, general and administrative expenses to £25.85 million. Advertising and sales promotion expenses printed at £4.0 million in Q2 or 13% higher than the comparable quarter of last year.

WD-40’s quarterly update comes on the same day when the American clothing company Levi’s reported a 13% decline in Q1 sales due to the ongoing Coronavirus pandemic.

At the time of writing, WD-40 is valued at £3.09 billion and has a price to earnings ratio of 59.09.

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