WD-40 Co Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Linda Bolton Weiser - D. A. Davidson & Co. - Analyst : Yes, hello, congratulations on a solid quarter. So I was wondering if you could comment on what so what the environment is regarding pricing because we're actually starting to hear in certain areas of deflationary developments. Are you getting any pressure to actually roll back any prices? I know historically that wasn't really the practice but can you just sort of you give a little bit more on the pricing front? Thank you.

Question: Linda Bolton Weiser - D. A. Davidson & Co. - Analyst : Okay. And then I know when you put the price increases in Europe that there was some loss of distribution. Can you just update us on, have you fully regained back that distribution and kind of what's the status there.

Question: Linda Bolton Weiser - D. A. Davidson & Co. - Analyst : Okay. And then can you give some -- well, I can't remember, I don't think you've exactly quantified the income statement effects of your ERP implementation costs, but can you give some idea of the cadence of when those will hit the income statement? Is it more in the first half or second half or just evenly across the quarter? Any color on that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Linda Bolton Weiser - D. A. Davidson & Co. - Analyst : Okay. And then finally, I guess I just was interested in the commentary on India. I didn't catch exactly what you said, but it sounded like something and then go forward would resume more in the second half of the year. Can you give a little more on that issue? Thank you.

Question: Linda Bolton Weiser - D. A. Davidson & Co. - Analyst : Okay. Thank you very much. I appreciate it. Sara Hyzer - WD-40 Co - Chief Financial Officer, Vice President - Finance, Treasurer Thank you, Linda.

Question: Daniel Rizzo - Jefferies LLC - Analyst : Well, good afternoon, everyone. Thank you for taking my call. Just given the strong performance in the first quarter in sales, I mean you're up over 12% on the outlook is for the year is largely unchanged. I was wondering if there's order timing that's involved that would suggest a slow slowdown in the second quarter or the back half of the year. How should we should think about it again, given the everything still intact, but you had a fairly strong first quarter. Sara Hyzer - WD-40 Co - Chief Financial Officer, Vice President - Finance, Treasurer I'll take that one. Hi, Daniel. This is Sarah. So yes, we are very pleased with the results for the first quarter, but it is just one quarter and there's still a lot of uncertainty as we look out for the back half of the year. And so at this point in time, we felt that it was appropriate. It's still our best estimate that we believe will still be within the guidance for the rest of the year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Daniel Rizzo - Jefferies LLC - Analyst : Was there any pull-forward in the quarter from it from the same quarter, I know in the past. So particularly sales in Asia have been kind of lumpy just because of order timing. I was wondering if we saw that at all here in the first quarter?

Question: Daniel Rizzo - Jefferies LLC - Analyst : And then this may be a dumb question. But given your asset-light business model, is there any benefit from improved cost absorption with higher production volumes? I mean volumes can be fairly strong. I was wondering if that will have a meaningful impact on gross and EBIT margins.

Question: Daniel Rizzo - Jefferies LLC - Analyst : Thank you very much. Sara Hyzer - WD-40 Co - Chief Financial Officer, Vice President - Finance, Treasurer You're welcome.