Oil-Dri Revenue Hits Record as Cat-Litter Demand Lifts Q3

Oil-Dri Corporation of America posted record third-quarter revenue of $126.33 million, up from $115.5 million a year earlier, as demand for its cat-litter and fluid-purification products drove the top line. The Chicago-based maker of scoopable cat litter and industrial absorbents said net income for the quarter ended April 30 rose to $14.2 million, or $1.94 per diluted share, compared with $12.1 million, or $1.66 per share, in the prior-year period.

President and CEO Daniel Jaffee credited the performance to "continued strong demand" across both the consumer and business-to-business segments. The company's retail cat-litter brands, including Cat's Pride and Jonny Cat, benefited from shelf-space gains and higher average selling prices, Jaffee said. On the industrial side, sales of fluid-purification products used in edible-oil processing and pharmaceutical manufacturing also contributed to the revenue record.

Gross margin improved to 27.8% from 26.4% a year earlier, driven by favorable product mix and lower raw-material costs, the company said. Selling, general and administrative expenses rose to $26.1 million from $24.8 million, reflecting higher compensation and marketing costs tied to the retail push.

Oil-Dri's board declared a quarterly dividend of $0.31 per share, payable Aug. 1 to shareholders of record July 18. The company also extended its share-repurchase program, authorizing up to $30 million in buybacks through June 2027. Oil-Dri has paid consecutive quarterly dividends for 23 years.