Oil-Dri Corporation of America (NYSE:ODC) reported third-quarter results on Tuesday that came in ahead of expectations, posting adjusted earnings per share of $1.00 on revenue of $126.3 million.
Sales increased 9% from $115.5 million recorded in the same quarter a year earlier
Investors responded positively to the results, with the company’s shares rising 1.92% in premarket trading. Net income climbed 25% year-over-year to $14.5 million, compared with $11.6 million in the prior-year period, supported by record sales performance and continued focus on cost control. The increase in revenue was largely driven by strong demand for cat litter products across both the Business to Business and Retail & Wholesale segments. “I am pleased to announce that after two consecutive quarters of challenging year-over-year comparisons, our recent results surpassed the prior year,” said Daniel S.
Jaffee, President and Chief Executive Officer. “Record third quarter consolidated net sales grew 9% and, combined with disciplined expense management, drove a 25% increase in net income despite inflationary pressure on cost of goods sold.” The Retail & Wholesale Products division generated record revenue of $82.5 million, representing a 13% increase from the previous year. Domestic cat litter sales within the segment rose 10%. Meanwhile, the Business to Business Products segment recorded revenue of $43.8 million, up 3% from a year earlier, aided by growth in the company’s agricultural and animal health operations.