Q: What is WD-40 (WDFC) Q3 2024 Earnings Call Transcript Summary?
**WD-40 (WDFC) Q3 2024 Earnings Call Summary**
**Bullish Points:**
1. For the third consecutive quarter, sales growth was observed across all three trade blocs.
2. Reported net sales reached $155 million, marking an increase of over 9% and setting a new record for the company.
3. Sales of maintenance products grew over 10% for both the third quarter and year to date.
4. Gross margin improved to 53.1%, a sequential improvement of 70 basis points and 250 basis points compared to the third quarter of the previous fiscal year.
5. Sales in the Americas grew approximately 6% over the prior year to $75.1 million.
6. Strong sales of WD-40 multi-use product in Latin America, which increased by 51% year over year.
7. Sales in EIMEA grew approximately 13% over the prior year to $59.4 million.
8. Sales in Asia-Pacific grew approximately 14% over the prior year to $20.5 million.
9. In China, sales of maintenance products were up 29%, primarily due to successful brand-building programs and the timing of customer orders.
10. The acquisition of the Brazilian marketing distributor has led to immediate top-line benefits and is expected to contribute more than $10 million in revenue growth over the first 12 months.
**Bearish Points:**
1. Sales of WD-40 multi-use product in the United States and Canada decreased.
2. Sales in the United States decreased by 2% compared to the prior-year quarter.
3. Sales of WD-40 multi-use product in Canada decreased 13% period over period.
4. Decline of 19% in homecare and cleaning product brands in EIMEA.
5. Sales of nonstrategic household brands in the U.S. decreased by 15% in Q3.
6. The company experienced some minor disruptions in the third quarter due to the ERP implementation.
7. The cost of doing business increased to 34% in the third quarter, up from 32% in the prior year, driven by higher employee-related costs and professional services.
8. Adjusted EBITDA margin was 19%, which is below the long-term target range of 20% to 25%.
9. The inflationary environment and strategic investments are putting pressure on adjusted EBITDA margin.
10. Unanticipated inflationary headwinds and other unforeseen events may affect the fiscal year 2024 outlook.
For more information about WD-40's earnings call, you can read the relevant news: WD-40 (WDFC) Q3 2024 Earnings Call Transcript
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