WD-40 Company (WDFC) investor relations material

Introduction and agenda

• The discussion was hosted by a senior analyst and featured the CEO and CFO, focusing on the company's long-term growth algorithm, which targets mid to high single-digit maintenance product sales growth, gross margin above 55%, and EBITDA growth outpacing sales.

Current industry trends

• The company maintains a strong U.S. market position, with 35% of global sales, and is expanding internationally, especially in Latin America, Europe, and Asia.

• Emerging markets like China, India, Indonesia, and Turkey are experiencing high double-digit growth, with China and India being the largest opportunities.

• Premiumization of products, such as Smart Straw and EZ-REACH, is driving higher margins and deeper brand loyalty, with premium formats making up 40% of global sales and 80% in the U.S.

• The Specialist product line, targeting professionals, is the fastest-growing segment, with a 14% CAGR and significant global expansion potential.

• E-commerce, though less than 10% of sales, is the fastest-growing channel, up 22% year to date, especially in the U.S. and China.

Challenges and overcoming obstacles

• Input cost volatility, especially in specialty chemicals, is managed through a mix of long-term contracts and price actions in Europe and Asia to defend gross margins.

• The decentralized supply chain with 20 external partners provides flexibility, cost optimization, and resilience against disruptions and tariffs.

• Annual cost-saving programs and new manufacturing sites, such as in Thailand, help offset recent disruptions.