WD-40 Company (WDFC) AGM 2022 summary

Financial performance review

• FY22 net sales $518.8M, up 6% YoY; gross margin 49.1%, down 490 bps; operating income $87.3M, net income $67.3M and diluted EPS $4.90.

• At constant currency, FY22 net sales were $527.1M, up 8%; operating income fell 1%, net income 3% and diluted EPS 3% YoY.

• Gross margin fell 490 bps, driven by specialty chemicals (-430 bps), aerosol cans (-180 bps), warehousing/distribution/freight (-110 bps), filling fees (-100 bps) and FX (-50 bps); pricing added 390 bps.

• FY22 ROIC was 23%, versus 35% in FY21; the 55/30/25 model recorded gross margin 49%, cost of doing business 31% and EBITDA 18%.

Board and executive committee updates

• Garry Ridge retired as CEO effective Aug. 31, 2022, and from the board effective Dec. 13; Steve Brass became CEO Sept. 1.

• Jay Rembolt retired as CFO effective Oct. 31, 2022; Sara Hyzer became CFO Nov. 1.

Dividend announcements

• Annual dividends have been paid without interruption for over 40 years; the stated target is annual dividends exceeding 50% of earnings.

• FY22 dividend per share was $3.06; the FY22 payout ratio was 62%.