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Oil-Dri Corporation Of America (ODC-1.41%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports a 15% increase in consolidated net sales, reaching $127.9 million, compared to $111.4 million in the same quarter of the previous year. This growth was attributed to higher volumes and favorable mix in both the Retail and Wholesale Products Group and the Business to Business Products Group.
Gross profit increased by 32% to $40.8 million, with a gross margin of 32%, up from 28% in the previous year. The margin expansion was driven by volume growth and improved fixed cost coverage.
Selling, general, and administrative expenses rose to $19.6 million, a 10% increase from $17.8 million in the previous year, mainly due to higher segment SG&A expenses.
Net income for the quarter was $16.4 million, up from $10.7 million in the previous year, reflecting a 52% increase. Income before income taxes was $20.2 million, compared to $12.8 million in the previous year.
The Business to Business Products Group reported a 24% increase in net sales to $48.4 million, driven by sales in fluids purification and agricultural products. Operating income for this segment rose by 54% to $17.1 million.
The Retail and Wholesale Products Group saw a 10% increase in net sales to $79.5 million, largely due to new crystal cat litter products and stronger demand for co-packaged cat litter. Operating income for this segment increased by 18% to $13.4 million.
Foreign subsidiaries reported a net loss of $0.2 million, compared to a net income of $0.6 million in the previous year, with net sales decreasing by 27% to $5.1 million.
Cash provided by operating activities was $10.9 million, while cash used in investing and financing activities was $12.8 million and $9.1 million, respectively. The company made capital expenditures and repaid $5 million of its revolving credit facility.
The company remains in compliance with its debt covenants and expects cash flows from operations and available liquidity to meet its cash requirements for the next 12 months.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Oil-Dri Corporation Of America quarterly 10-Q report dated December 9, 2024. To report an error, please email earnings@qz.com.