Oil-Dri Corp. of America develops, manufactures, and markets sorbent products. It operates through the Retail and Wholesale Products Group; and Business to Business Products Group segments. The Retail and Wholesale Products Group segment includes mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The Business to Business Products Group segment focuses on processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.
Our future growth and financial performance depend in large part on successful new product introductions.
We face intense competition in our markets.
Our periodic results may be volatile.
Acquisitions involve a number of risks, any of which could cause us not to realize the anticipated benefits.
We depend on a limited number of customers for a large portion of our net sales.
Price or trade concessions, or the failure to make them to retain customers, could adversely affect our sales and profitability.
Increases in energy, commodity and transportation costs would increase our operating costs, and we may be unable to pass all these increases on to our customers in the form of higher prices and surcharges.
Our business could be negatively affected by supply, capacity, information technology and logistics disruptions or the costs incurred to avoid these disruptions.
Technology failures or cyber security breaches could have an adverse effect on the Company's business and operations.
Changes in inventory strategy by our customers as well as other external factors could adversely affect our sales and increase our inventory risk.
Environmental, health and safety matters create potential compliance and other liability risks.
Government regulation imposes significant costs on us, and future regulatory changes (or related customer responses to regulatory changes) could increase those costs or limit our ability to produce and sell our products.
Failure to maintain a level of corporate social responsibility could damage our reputation and could adversely affect our business, financial condition or results of operations.
We depend on our mining operations for a majority of our supply of sorbent minerals.
We may not be successful in acquiring adequate additional reserves in the future.
Failure to effectively utilize or successfully assert intellectual property rights, and the loss or expiration of such rights, could materially adversely affect our competitiveness. Infringement of third-party intellectual property rights could result in costly litigation and/or the modification or discontinuance of our products.
The loss of any key member of our senior management team may impede the implementation of our business plans in a timely manner.
We face risks to our domestic and international sales and business operations due to economic, political, regulatory and other conditions.
We may incur adverse safety events or product liability claims that may be costly, create adverse publicity and may add further governmental regulation.
Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business, operating results and stock price.
Our principal stockholders have the ability to control matters requiring a stockholder vote and could delay, deter or prevent a change in control of our company.
We are a “controlled company” within the meaning of the New York Stock Exchange (“NYSE”) rules and, as a result, qualify for, and intend to rely on, exemptions from certain corporate governance requirements.
The market price for our Common Stock may be volatile.
Future sales of our Common Stock could depress its market price.
Consolidated net sales in fiscal year 2019 were $277,025,000, an increase of $11,025,000 from net sales of $266,000,000 in fiscal year 2018. Net sales in our Retail and Wholesale Products Group increased for our cat litter products, as well as for our subsidiaries in Canada and the United Kingdom. Net sales in our Business to Business Products Group also increased, particularly for products used in agricultural and fluids purification applications. Sales fluctuations by operating segment are further discussed below.