Oil-Dri Cites Price Inflation in Fourth Quarter Earnings – Commodity Commentary

By Mary de Moist

Oil-Dri Company of America mentioned larger costs for resin, lumber and pure gasoline dented its fourth quarter outcomes.

In its fourth trimester:

“Our efficiency within the fourth quarter and all through fiscal 2021 was disappointing regardless of important income progress with report consolidated internet gross sales for each durations,” mentioned President and CEO Daniel S Jaffee.

“Our profitability has been drastically diminished attributable to important value inflation throughout all enter channels. Not solely has the value of resin utilized in our jugs and buckets elevated, however larger lumber prices for pallets have additionally contributed to our total packaging expense enhance dramatically, ”says Mr. Jaffee. .

“The dramatic will increase within the prices of freight, pure gasoline and different supplies have additionally negatively impacted our margins. In response to those rising prices, now we have carried out worth will increase throughout our portfolio. Nonetheless, it’s clear that now we have not stored up with the speedy tempo of inflation.

“As well as, our provide chain has been challenged by capability constraints in trucking and ocean carriers mixed with a nationwide labor scarcity.”

The specialist absorbent producer and provider mentioned internet gross sales reached an all-time excessive of $ 78 million quarterly, up 20% from the comparable quarter a yr in the past.

“Gross sales from our cat litter, industrial, athletic and agricultural companies have been liable for most of this progress. and the dietary merchandise have been principally flat, ”the corporate mentioned.

“Whereas revenues elevated considerably within the quarter, these features have been offset by a 7% enhance within the home value of products bought per tonne manufactured over the prior yr. Trucking capability constraints and excessive gasoline prices resulted in a 7% enhance in home freight per tonne manufactured in comparison with the identical interval final yr.

“As a result of excessive resin and lumber worth inflation, home packaging prices per tonne manufactured have elevated by 40%. The margin discount was additional contributed to the rise in home pure gasoline per tonne manufactured, which rose 67% within the fourth quarter from a yr earlier. “

Write to Mary de Moist at [email protected]

About Edith J.

Check Also

Blue Hen Company pronounces modification to its credit score facility

FORT VALLEY, Georgia – (COMMERCIAL THREAD) – At this time, Blue Hen Company (NASDAQ: BLBD), …