Oil-Dri Corporation of America (ODC) SEC Filings & Earnings Calls

Gross margin pressure from rising manufacturing and freight costs

“Gross margins declined to 27.8% from 29.5% due to 4% increase in per ton domestic COGS from higher manufacturing and freight costs.”

Geopolitical pressure on diesel prices and reduced trucking capacity

“Geopolitical pressure on diesel prices and reduced capacity in the trucking industry contributed to this increase.” · word for word

B2B segment sales decline and operating income drop

“B2B net sales -1% YoY; segment operating income -7% YoY.”

Intense competition in cat litter market

“Some of our competitors, particularly in the sale of cat litter (the largest product in our Retail and Wholesale Products Group), have substantially greater financial resources and market presence with established brands.” · word for word

Dependence on Walmart

“Sales to Walmart and its affiliates accounted for approximately 18% and 19% of our total net sales for fiscal years 2026 and 2025, respectively.” · word for word

Regulatory compliance costs

“We are subject to a variety of federal, state, local and foreign laws and regulatory requirements relating to the environment and to health and safety matters.” · word for word

Input cost inflation

“Domestic per ton cost of goods sold increased 6%, due to a 9% increase in per ton manufacturing costs when compared to the same period in fiscal year 2025.” · word for word

Weather event disruption

“During this time, due to safety concerns and interruptions that we experienced to power, natural gas, and water, we temporarily shut down operations of our facilities in the affected regions, which resulted in reduced production.” · word for word

Customer concentration in B2B

“Net sales of our animal health & nutrition products for the nine months ended April 30, 2026 decreased $3.4 million, or 17%, compared to the nine months ended April 30, 2025, due to lower volume primarily driven by a temporary loss of a key customer at one of our distributors.” · word for word

Geopolitical uncertainty

“While ongoing geopolitical tensions and conflict in the Middle East have contributed to broader market volatility, these conditions did not have a direct, material impact on our results for the current quarter. However, continued uncertainty in the region may lead to increased input and transportation costs in future periods.” · word for word

Input cost inflation pressuring gross margins

“6% increase in per ton domestic cost of goods sold; gross margin down 190 bps YoY.” · word for word

Geopolitical unrest and transportation cost headwinds

“Ongoing conflict in the Middle East and related increases in transportation and input costs could create headwinds.”

Winter storm disruption impact on supply chain

“Winter Storm Fern disrupted supply chain and affected customers' ability to receive orders.”

Customer concentration in renewable diesel filtration

“Net sales of our fluids purification products for the six months ended January 31, 2026 decreased $5.0 million, or 9%, compared to the six months ended January 31, 2025. This decrease was due to lower volumes, primarily of our products used in renewable diesel filtration, which were significantly higher in fiscal year 2025 when several new customers began op” · word for word

Key customer loss in animal health

“Net sales of our animal health & nutrition products for the six months ended January 31, 2026 decreased $4.0 million, or 29%, compared to the six months ended January 31, 2025, due to lower volume primarily driven by the loss of a key customer at one of our distributors.” · word for word

Weather-related production disruption

“Over a period of several days in January 2026, the southern and eastern United States was impacted by a significant weather event known as "Winter Storm Fern"... we temporarily shut down operations of our facilities in the effected regions, which resulted in reduced production.” · word for word

Weather disruption risk

“Winter Storm Fern temporarily shut down facilities, disrupted supply chain, delayed revenue recognition.”

Customer concentration risk in animal health

“Loss of a distributor's key customer caused 32% decline in animal health sales.” · word for word

Renewable diesel demand normalization

“This decrease was due to lower volumes, primarily of our products used in renewable diesel filtration, which were significantly higher in the first quarter of fiscal year 2025 when several new customers began operations in new plants.” · word for word

Manufacturing cost inflation

“The increase was primarily driven by higher per ton manufacturing costs, including materials, which increased 8% when compared to three months ended October 31, 2024.” · word for word

Private label account loss

“$1.2 million was due to a private label account that was lost in the second quarter of fiscal year 2025.” · word for word

Volume decline in core segments (fluids purification, animal health, domestic cat litter) indicates demand headwinds.

“Fluids purification sales down 13%, animal health down 25%, domestic cat litter and industrial/sports products declined.”

Cost inflation pressure: domestic COGS per ton up 3%, contributing to gross margin contraction.

“Domestic cost of goods sold per ton increased 3% compared to prior year.” · word for word

Controlled company governance risk

“Our Board has determined that the Company is a 'controlled company' within the meaning of the NYSE Corporate Governance Standards.” · word for word

CEO stock pledge

“260,000 of the shares of Class B Stock held directly by Mr. Jaffee are pledged to a bank as collateral for a personal loan.” · word for word