ODC - Earnings call transcript Q1 2022 | Oil-Dri Corporation of America

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Operator

Welcome to the Annual Meeting of Stockholders for Oil-Dri Corporation of America.

Our host for today's call is Leslie Garber, Manager of Investor Relations. At this time, all participants will be in a listen-only mode. I will not turn the call over to your host, Leslie Garber.

You may begin.

Leslie Garber

to of welcome Meeting XXXX and Stockholders. of morning, Oil-Dri America's Corporation Annual Good Leslie I'm Garber, Investor is name My and Oil-Dri. Relations the at of Manager Due this are everyone's pandemic, and to to health virtually ensure conducting safety. the current meeting we we meeting inclusive, be greater of webcast, a save and able our to By hosting stockholders live costs. are this number via more reach of On and of conduct, rules the meeting your agenda, statement screen under proxy of Meeting record stockholders Materials, annual Oil-Dri's you report. will find and list

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pleasure Scheland, Counsel Now General it our conduct my of meeting. portion will to formal who is today's introduce Laura Secretary, and the

Laura Scheland

webcast the for Sablich Oil-Dri and at, meeting. ladies meeting serve gentlemen. close proxy and Inc. an Oil-Dri's of has set Oil-Dri XXXX entitled of has XXXX, for call Hagberg affidavit business Meeting oath determination now Solutions, of regarding a to the is office. Commencing proxy which stockholders on October on XX, Annual statement. a vote the the has materials Board fixed availability the is appointed this Election confirming the and October copy Inspector was this of, CT to of proxy notice of present to I to of notice of Stockholders XXXX, notice record the Directors of the Financial of delivered record all on the in He by XX, date Broadridge order to the formal of the of of forth America conduct business and as of taken foregoing. mailed or Corporation materials morning, to Peter LLC the of meeting. Oil-Dri as stockholders Good

entitled one October B As X,XXX,XXX there common are the purposes in of Holders Class stock common majority shares shares votes Oil-Dri's and person a stock date this entitled are meeting, of vote of to at Mr. for for our of of quorum stock B outstanding. XX, and vote informed and proxy. the the Thus, of A outstanding has declare share of stock of were common constitute Class or without XXXX, Therefore, quorum X,XXX,XXX Oil-Dri's votes. that represented record regard present than entitled business. generally at present more this our holders together per stock meeting. XX there per transacting share, represented votes B XX,XXX,XXX Sablich votes necessary meeting quorum such are there stock our at are to is if is vote me by I holders class. number meeting this to of and Class this of a present to to number and

to regarding will matters presented. after field Question themselves Ask any like the a stockholder the on make to all upon. portal, any in be the will Now been Web the a comment proposals any submit proposals voted please present I and through comments proposals, we the comments If your of would review have

Washow. Suckow H. Lawrence Selig, as Jaffee, As a Paul Oil-Dri's Directors. eight and election are Paul business listed nominees is described first Those statement Director Ryan, each The of E. whom of item Oil-Dri. currently the A. the of Michael Hindsley, Daniel Ellen-Blair Roeth, serves proxy M. Amy for L. proxy Directors, the in nominees of statement, Chube, Nemeroff, C. E. S. George Allan

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We been a Elections received the majority that shows by have such at Inspector the is the our business now review. this the report informed financial for vote further Meeting presentation business Dan being I before Oil-Dri ratification President be our meeting, Stockholders conducted Executive of of this am Annual come the This America happy adjourned. There Officer of represented to Corporation votes meeting. and more Jaffee, no to introduce Chief business of and now preliminary that than to of the meeting. completes at XXXX

Dan Jaffee

in and the the it different dumped navigate exciting. want the still Great. when Thank thank the for water, our the now optimizing thought to frontline We're workers pandemic. shareholders just completed to of Welcome thank our continued loyal midst It's you safe you, happening. [ph] year, back I a was they you, us thank I -- our Laura, but just helped variants, it we with it fiscal and support. want particularly the -- who everyone. keeps variant go Meeting. our XXst your which to is in to our Annual all

revenue proud work And million time. And and into to From coming for we we're and records. in we the continue billing. -- the standpoint, that that's they shipping keep broke a set they so $XXX keep first very And filling orders. sales

our some CFO, detailed Susan from You'll hear with numbers Kreh, more review.

We massive issues. and cost external also supply suffered pressures the chain

to to our raw say from And your compared ask, goes would very Molly wife? about our play. fortunate sort chain. how's material, a used hear would what percentage how's always We're VandenHeuvel product, supply who? joke He You'll Compared our that of your that's who? control huge chain? to our dad we my when supply into of i.e. people And

issues at buying takes look months. suppliers external or an car filling the experienced getting and that bed are on they're whatever, across that [ph] all globe think who chains having these companies You orders, way it's whether a I getting we've supply the just and a reach iPad, reliant all purely massive

way of it. we we're great under we're through So doing lot but a a and are navigating job, pressure our clearly

a in and Fortunately, and and prices, a market moving been target. costs we've cutting out we're chasing we're rational there raising

we But going an to with provide attempt continue and we standpoint. get and by to just quarter. that from this to so continued a so Oil-Dri get to expect. demand just the margins try and to way you to quarter the we back the to come really feather that continue be to the need margin prices And service And our released, nest. customers they they saw trying able It's raise merely margin is that confident have we're first can our where that just they be were back quality to our to we're in no pressure where

able for can Jessica and almost is which Fred and they equal, Wade our home and product or prefer as is all and Moskowitz being ask they lightweight all want, much to by weight how a the you they talk animal Jessica litter, of environment. smile get obviously performance about And at quite. buyers, I side the better launched not strategies. twice the things decade the from It's up? volume said not be believe course, on want patented winning invented, health what price as I question seeing to they high hear weight. You'll the and And point they carry want weight, now, half weight the the carry on ago Amlan home always they will a and that we less meaning by want. Do use they consumer say,

our and the half as many for loads You put better twice on can delivery it's a It's the partners, consumer. truck. better truck units for and

as cat is the pail. to the oftentimes appreciated getting know, we same XX-pound price predominant are not a nearly XX-pound having use, women performance, at of and haul a and home better a litter as same buyer pail As

retail the in are lightweight our the really are that heavily success. leaning So partners seeing

category. You're see us to continue to outperform the going

You'll have outperform the continued see category. we to that

for market You north know high of test going Canada. great in up what, on border up is how the a is

are went almost is and competitor Nestlé lightweight Cats. branded years Tidy that XXX% biggest way. Purina, two Our now ago over They they staying

of the team quarantining Canadian XX%. of if whole that we to Canada A but business guys do they can market comb Ks, and is lightweight, you Qs there, get up half the exciting of our I 'XX up you and walk what's you formula. there due it's for Canada up everything litter cat fiscal been on. old see and physically able shout haven't the heavy to in our half very doing. FaceTime what around through going and are year -- out else, We the up now So density really was in me proud to our

this of XX% we up for fourth quarter the sales. up the year, fiscal were quarter. XX%. we're We in were year, the fiscal And So in in XX% net up again, first

So at the a around in X%, growing that's growing X%. momentum category is

continuing share The we're focused So the Leslie and lightweight lightweight, the take and side. quality, consumers and side, private and them demanding there to on branded because is branded absolutely of up offering. our wanting and on the side giving are the to it while mostly label we're the service it’s

So market is lightweight. great it's we high for market -- that's The XX% test of still how up. U.S., the report sort under a is of

She'll patient. fits shift really You'll we all working. been lot and mineral. new in We've a about Jessica. a new guys we from gears through team, And a animal new starts. incredibly health, it's we'll to with have main the switch ago, strategy hear retooled, year over everything And go are a specifics. and and Then leading you the the we'll learned our put and and was that have really

We unique very, have very a mineral.

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then real they are have Wade an has together, Pippen one. to Jordan, team to built truly his Fred world and put be which together able together team. has talent, team. happy And we put And marketing the and incredible attract I'll Phil on together. be being are class We this

those from tell can I'm very hear company. about you the future So the you'll that excited of But guys.

strategies. winning have We

taxes. have putting navigating if well well. government And is you restricted have his very but storm okay, as We you is? CEO to as As great mouth first are team. we every most you got follow just the we where a say, his the can, And pay year in to well ultimately, best all, money because the the I I chairs, company, know of some -- and well, years invest the

check. want you And sanity never don't. would a don't I I see to -- taxes. that's [indiscernible] So

a it I the decision year, are I'm the is ado, so can to it's more I to very chunk a of and without out this of for I year, the the you on all all-in either And it made wrote of it to a the you to bill he's want $XXX,XXX And the team could mostly making or big over all And chunk who can the I very is a that the about tell the through pay further check but there every of to this latter. usually And of CEO shares. taxes. company. shares defray little actually that again your for this excited turn filings, you so future sell be about that see cash bit former, And would excited I to hold future. the tax happen. the find so insane the and

I year. people like investing are investment that every the helping value As you're people highlight always are these these the do. your new are that and VPs, I because gain to

like joined XXXX. Vice the Corporate July I order. He and with He seasoned alphabetical During of the family. the take in a Atkinson of will in Oil-Dri over professional at are welcome really his him President joined is them both multi-generations and Presidents. three Supply have have years as we Oil-Dri of Chain. She's Controller. Northern accounting to new Controller. finance is they engineering in Vice worked XX We international joined He where success and maybe Dave served He CPA, year, happy Vice college. promoted into it manufacturing. we're of The BS of Oil-Dri for children 'XX. part someday. story. of has from too who kids as experience Administration his Corporate to Masters Hueser. us. in the And wife family highlight Business has Kathy from been very Ferrara be will consumer knows, President and and a recently Oil-Dri August their And President, Illinois. and in She role next And accounting, Oil-Dri do I'd and has joins Candy us he studying in real President Vice Service Michelle Vice to in a products She of Customer us us

years. So families really her husband Oil-Dri. held She she's from sales homelessness. technical truly is every core writing Williams-Sonoma Scott enjoy College. coming Her undergraduate of earning that University. She And common from and a values, degree up and DePaul on degree theme amongst exemplifies in again, almost Oil-Dri our daughter for nonprofits with XX to it's positions day. earned operations that It's care. Stephens one we she prior joining emerging her She supporting and from do her

Marketing nutrition President of last success recently please from but of Robey, his promotion. years are of us XXXX. has hit definitely but wide And was in ag He's He Vice joined her physiology industrial BS and joined the got of Amlan master's Wade, as a animal Ph.D. his resume everything, science include Virginia at the on February He Michelle too here his already not He He XX in in got to mentioned, Product in I ag and some long highlights. us in Auburn. Auburn sprinting. then who ground Wade avian So and Tech. his congratulate range industries. least, Development. of in

an incredible variety Cargill, that health a multinational He roles So perfectly experience. Syngenta. has educated he animal like complemented then worked resume for Monsanto, of has education Novus, companies is and of with in

the I have his Sioux South to live on Allison in Wade and but really, no Just fortunate Dakota. idea team. why, wife have He they Falls, really do.

environment. week that Somebody has the with meet of a he onboard productive meets virtually time. it shows guess. all this every we've in can I together virtual to there, environment and I able beauty it's us. And and to join the But and And lot. live Yes, just Wade was the the we virtual be team that been physically

and it over to I'm through financial to Susan turn walk So you highlights. going the Kreh, she'll

Susan Kreh

Dan. Thanks,

proceed trends I back quarter decade look first be the of following on results. will sharing I as performance our slides, As through past as well a the focusing at

achieving in and companies decades. that faster see inflation other many costs will so business like we We that at across Oil-Dri, we globe, growth winning growing are are experienced is facing our have input than when rates the in

continued growth, sales the XX%, X% of as represents quarterly growth was the XXXX, earlier, due This noting consolidated years Let's increasing over of X% million over net million, high of XX cat momentum growth prior of an first year. fiscal mentioned and and sports record respectively, by the in reached primarily demand to higher the purification an demand products, This reached where sales sales industrial was all-time start litter prior growth XXXX, which net driven and an for and litter, by Dan all-time fiscal increased That at prior high primarily that quarter year. increase over X% net agricultural which into products, our XXX consolidated sales cat year. by of products. our XX an fluids looking

While and quarter sales business, products coarse of cat agricultural our we litter revenue first animal from year. to our declined experienced same compared gains co-packaging the health in quarter also the last

fiscal we mentioned net contribute And consolidated sales first that the As lines during XXXX quarter. been improvement fourth to call, our helped in increases offset prices help those product rising during investor all increasing costs. saw quarter we've I previous the across to

wholesale a high and quarterly XX%, retail business to prior and group reaching grew of the X% XX business products record million. products group our year Our over grew

drove impact momentum top the top the quarter XXX,XXX also to on line, first The increase our fiscal a into over our year XXXX continued revenue sold favorable a growth. pricing line of when we addition first volumes tons, X% our In ago. quarter

the ton at during focusing from $XXX first line net from minerals quarter, growth an pricing the value impact mark volume on of sorbent and of our per top the we of fiscal about all-time as ton look mix. reached sales brief demonstrates So the And per mission a as of high review came XXXX creating and our another one-third sold. of two-thirds through

are environment to continue we material adverse We the on inflationary of we focus as the pricing operating. experienced which in effects currently

We increases of Net the ton some $XXX in various increases our have already per across announced quarter impacts first publicly product that the includes fiscal have the we groups. of sales price price multiple of XXXX of announced.

We expect contracts with quarter, notice to early the more certain quarter announced achieve the the during during of the due some that pricing second built the to are being of the of part into the implemented benefit third periods to gross our our Shifting ton, which key we per the our a manage profitability performance uses face become have our that with of profit team customers. of to evident. that headwinds business, metric is

While hard sales costs our gas the and cost during XXXX. that quarter Packaging and of severely first the to gross the large cost increased the to XX% in resin ton was primarily were in XX% velocity retail fiscal just use hit profit of ton used per our increases the prior for of bit of the was disproportionately. packaging, fiscal in to of the decrease year, fiscal highs XX% [ph] cost ton fiscal fiscal the over XXXX. net per of and cost sales Higher customers. the per three natural per extensive for packaging, us impact fiscal to manufacturer all-time three jugs increases XXXX Further, our fiscal gross add products The three same months place manufactured XXXX rising fiscal driven Freight by of during compared gas in year months whopping higher of non-fuel increased XXXX. kilns, part cost manufactured XXXX, continued approximately color, eclipsed ton per inflation drove net second ton and of the dryer increases. at of which profit. in pricing a our per the freight, impacted to first months natural cost period was wholesale adverse a half first ton operate silk year, affect XXXX. because by the of the in first year manufactured To cost market-driven The increase magnitude and ability compared these the these

increases and income of be to impact of have our continue While metrics. announced markets, We to extraordinary our earnings in we our implemented the may input discussed and share inflationary see aggressively both on cost all future just what per we we monitor costs determine increases the price our net price needed.

remain So moving there and strong and on the remains our which growing. dividend, being both first said, is in you to from that, that position committed increase financial the we and And our predictable see quarter.

enables invest position financial to to fronts. strong continue multiple us on Our

help fund addition reduction our to stock developments through program. our of to shares facilities opportunistically production restricted shareholders ongoing through product R&D. new offset And to of commitment some opportunities payment dilution through repurchase of incentive the In and CapEx. our stock our our we the maintain dividends, cost We we

at Our of under million end low as of debt a remains the first the just of X quarter. position

growth that In or become to support we investments summary, that addition share acquisition to incremental to ratio have momentum as we X%, funding total key in debt to talked gives working finance powder to plenty fund us of needs as mentioned the the and capital potential opportunities which may a about conservative earlier, strong our Our dry is capital in earlier, capturing markets. available. well

place team focus are strong we order increases supply externally seen we and customers. focused a recent term to any in and together we managing challenges have that working I extraordinarily strategy. in our best while in on challenges maintaining that short-term longer those we on order in driven that are these unlike keenly believe to address our serve However, facing, fighting significant well is have we challenges cost our history, are chain

the has to to Chief her chain summary, together pleasure our VandenHeuvel, with challenges teammates turn that working So my to over my supply been mentioned, with address Operating Molly that team, this of Officer. it we diligently, one is

Molly VandenHeuvel

and Thank to all heard the within market that I impacts. that. light of of business, supply all of the impressed encountering challenges to and COVID-XX I'm And Oil-Dri the these chain chain Most you, year are from both you is from Susan. appreciate of I now the positive the constraints we are have immune way today. going Dan to aware industries But Susan, in and this the Oil-Dri difficult amplify the in truly challenges. chain, the and supply all team us. negative with global was reduce was talk But way, a And not broader on supply as persevered you but have today. impact. worked mitigate impact to addressed also these head the to for

impact. the me with let start So positive

the industry processing our product been ability average have the sales we put worked people net driver product better A share pressure commercial all up our at keeping faster more of set on than partial they and anticipated. plans grown for originally address deliver on to times, issues. time. midst have of we does strong have the teams In sales to of has tools, but growth service Our the levels these some than share This shelf. and much the

have Dan integrated, so chain. systems supply mentioned, and our a a product we strong have our We vertically of as of large part of is control majority

in and XX-K Susan. see can our by XX-Q, However, we are have as impacted impacts which reported summarized as results and also to global here, not you immune our as chain the supply

Our and teammates service. adapt remained procurement adapt customer chain and adapt to agile manufacturing, supply

to effectively we customers just with around In every adjusted demand part of our serve align our the production fact, continually globe. customer business to about and

cost. in volume of there's is mentioned, impacted Unpredictable results areas huge cost positive have However, and our complexity high customer a and already the been a customer but and I impacts. and as of also driver

volume up, you of addition high see logistics our When here. tightened transportation moving. headwinds communication routings, to the processes impacts, keep can adjusted and professionals some capacity carriers, product to In the

are cost increase can, still pickup, year, times late up to what continuing Susan. of last tight and lead have domestic managed freight this has seeing and drive we to we in year-over-year overall by XX% long also logistics positively This We transportation creatively the significantly, increase capacity. and summarized as year continued but

people, have improvements open to keep we for extra As automation our as would help and working than but positions as implemented product well moving. like have us we more teammates to hours

practices and adjusted and our improved close suppliers, we relationships on then material lack of when issues, also possible, safety have we're but processes. major a gas, least, that to resins, that suppliers. kept eye to materials. predicted stock, team due substituted production We material increased We onboarding had lumber we our sourced hiring when And recruiting potential alternate supply packaging our and transportation. no fortified supplier seeing outages natural pressures started last And cost ensure significant in not and we seeing

gas few, through increase. a we commodity products. to see year and order In macroeconomic high the multiple price environment, prices on a the pivots by we XX% this pricing for last to compensate as as of impacts saw we've new cost all by offset needed and higher, expensive cost have pivoted possible. Susan, year to the result and teammates packaging price by we QX Oil-Dri name to procurement and for as fiscal price in materials, goods increases Our suppliers and executed our much increased with initiatives to as bring input such savings as increases of year-over-year in this continued and see energy Even to natural XX% produce materials and just different of summarized all increases less inflationary into and divisions materials

near consumers. capacity of multimillion in product support savings producing projects, So moving with inventory, the the and slow our last improved quality our during measured continual of and as throughout working pandemic, the obsolete managed goals including excellence execution by and teammates and and elimination virtually. year our cat improvement in a our division, and Accomplishments our frontline increased litter kept teammates toward dollar

In to higher short, And and momentum. on COVID automation a reserves allowing invest continue installing mine trends. for line. We in constraining to our increased our well examples Oil-Dri a and increasing opening this in sorbent cycle, throughput business. global include jug global impacts new inflationary chain couple positioned are more Georgia for XXXX minerals but global finished supply strong Demand is and the post remains to economic capture not immune expansion for with our we of

address truly dedicated challenges ahead. the to have We teammates

We as and outlined us planning. achievements does the in challenges and our before, all do assist have I've operations which and to processes, in as ahead such I forecasts look XXXX. strong forward planning, forward sales capacity

Jessica Division, of like Consumer has General her she Products Moskowitz. and really that, going our in led and to to some She's our about Vice and it litter. off successes hand great talk team she Manager to I'd lightweight So with is our President

Jessica Moskowitz

could I our business Molly. in be Thanks, consumer lightweight [indiscernible] not division.

We that businesses, clay. In as sodium litter private our portfolio and counterpart from and the see lightweight the On across are but integrated label quarter with that to the in our cat for driven country quarterly been 'XX, amount XXXX private of label consumer a both sides more Calcium bentonite is weight a Recall continuing lightweight. scoop key and never has the division of same growth XXXX [indiscernible] growth in litter vertically to lighter products [indiscernible] success its strong to represented basis, has of heavy lightweight calcium X% posted business. bentonite, bentonite QX our both [indiscernible] volume. mines branded Oil-Dri same average by litter. across of record cat has representing also entire branded

heavy. key it's [indiscernible] for that clay litter, mentioned lightweight consumer Dan very traditionally earlier Our

starting providing In of the to entire the means freight with with benefits span [indiscernible] lightweight added costs. consumers convenience, overall less less weight supply chain, addition

less the even cuts way, capacity lightweight [indiscernible] units DCs. the for weight litter trucks road with that, is many on same means truck, reaching With Beyond wider and transporting the our customers In litter, on [indiscernible] before truck’s product. more our when shelves [indiscernible]. in being truck putting the [indiscernible] filled litter the efficiencies stocking our

the cat for sales current at XX the outpaced growth XX% of total the litter has Looking category, heavy litter latest traditional and of [indiscernible] U.S. litter weeks.

turn and increase our expect for so to value, our a we to litter As categories. continue convenient to to consumers we continue do quality options to at products

for study Canada looking cat particularly of high we've litter relative prevalence at mentioned, also market. case Dan to overall the As a been lightweight as

the has XX% compared a share in fact, XX% to a the market. share lightweight U.S., In litter Canadian of

Canada As in lightweight. shared leveraging and being in exciting of job a lightweight strong excellent an our team Dan this mentioned, done of driving has growth the part

the the from Going U.S. currently and and strong Oil-Dri growth of come our is U.S., player the businesses. has branded number the in back two the label sides to private both

elevated label the last share of business, side across business, both we overall and repeat is as increasing improvement gains. in distribution and demand, years And an acquisition for seeing market litter look we're distribution and the private branded new sentiment our the customer purchasing and growing, two we're seeing expanded On reviews. consumer

odor combination for growth our performance formula the shows and in stopped which even On lines Max absorbs locks a of products cross side, And here, we driven performing improving and plan causing social strong an a year of they screenshots social best our a team quickly this digital an formulation. success consumer the We tracking power performance driven functional a of tracking has a formula effort, line which as launched by with brand patented of litter products of media branded initiatives. shown low quality which before This had low superior as offers leading gate ultra start. impressive other out which tracking the consumers for thanks new supported clean, the of ads is enzymes to to value. the technology along odors a ads, display launch media of videos, range of ultra We've that video digital in great our engaging at broad and clean studies. turn and supported e-commerce low we've

the Speaking channels are in of amplified dependent often so which lightweight, many of on freight. those e-commerce e-commerce, benefits are discussed we about as

how consumers are Our they and to e-commerce. shop increasingly change continue pet parents into migrating

we our of on We've Oil-Dri, lightweight and as we got about e-commerce closing, team. to to business. an and the strong as improve we product individuals success at reflect conversion. For passionate be double our incredibly digit engaged group are continue of growth our presence that In heart lightweight, success expand talented the online of in continues growing see the

So it VP turn International. for with of Sales to that, I'll over Kao, Fred Amlan

Fred Kao

sales go have of gentlemen. Good the like the Thank and I'd to what months accomplished share ladies you, through ago. Jessica. XX part morning, presentation since we to Amlan

that key We of person key leader to VP Service trials, addition have to of XX to team. all points done our a technical team, the We areas. Director key Hughes and finding needed most introduced us Sales have Robey recruit. years Mr. already you to of plus for know, with And joining Technical as Dr. background be and another our technical As the experiences good is we positions also analysis of really with it's technical February of with me from Jay Global in of the already either marketing strong be of someone team. our XXXX. is in our Global to

markets key two in in team We they They in those driver We U.S. added region. 'XX. joined top currently China. U.S. North foundation December brand Mr. of XX a Heath numbers on Asia, and Santa in of the new will added Mexico Zhou the a in key in key people to complement in FY be directors; industry, since Ms. American of Harold key doing years in is and China in strong Margarita and Wessels sales the poultry with what XXXX team to also build our positions both

marketing position team We APAC needs. region much for future to a and also a region added build the and for HR growth bigger China in

our improved, in strong distributors the brought these them personnel, just how customer are key asked, from of meet is was to multiple King three countries. examples unique rebuilt pending we markets Hua have our are lot area When Dr. we It’s them this we global people one China XX still focus sales team regional China's of grew ago, of that, and to but team a top people more We year-on-year, and in On place. in since just adding China. very ensure not dedications Asia accomplished? manager, hold a to sell our new sales just minerals support but many than not their XX also Dr. a needs that have after team. we XX% add now with a from customers’ that to back now right major because in Michael patents We relationship of to direct of and be areas. have complete year technical

in working in And the key for July despite our Chinese at China of us world, of also market doors with success the in focus the accounts our unique continual the position in key government COVID banned Our right XXXX, the by July to XXXX. is time. products until remained markets. to the most challenges Antibiotics was opening untouched

demand animal Amlan the and there. supply and global grow chain to So the of African strong of crisis, protein challenges Asia. in fever really COVID Despite remained swine continued

due have We demand Taiwan volume and continue animal grow to added Japan, steady products. with of to they higher as Thailand

the regions. than seeing and Vietnam We in distributors the other hurting antibiotics is key added also and in cases alternative We're sales lot go of increased XXXX. regions, to along more the because different in East really Middle there Europe, America very Japan trend Latin with a since COVID of Africa a

in FY increase 'XX, nice it get the over we months a Although product global time. the seeing few there to are issues making tougher last supply are of

in about United integration we're profitability seeing talk States the with the high numbers we record U.S. industry, in to year. last As

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old enterprise in Our his And huge key species, to key three we in products, speech, requirements all countries. Dan that, and your as with you to is VP a anabolic in all continue Brazil effective use of to and for antibiotics and this our not thank will a integrations on the the January on way to gain momentum guidelines for countries particular. three in to follow it that's as opportunity lines Robey. different alternatives Thailand opportunity, just And we the Amlan. bottom need with different EU is even Because I'll set earlier actually Dr. more European will be Union's Companies Wade a good this products great excited? in new all mentioned and Why in attention. added so alternatives XXXX. their win for us new in are no in doors products frozen Unlike With will in a Marketing, better Amlan. integrations regulation for key pass open

Wade Robey

as shareholders. now on pleasure of shared I appreciate and approaching our to know I some morning, a the market I'm Fred information and strategy focus to the is around we to we're background our Fred, very going that. Good And be how grow everyone. It's exciting, Amlan information business. speaking the our

the us. When products very is two the refocus are some performance to that which our concepts during because mentioned business. and our underscore with about on tagline, all of important about good of and for by The really products I'm slide the clearly start our minerals natural. are new then for by our that could design. nature, clay things going Those nature, good focus by talk by We alter minerals first Dan processing. environment we It's mineral chemicals that really generating are with don't And for design. We sustainable. it's customers our performance harsh are

we we studies. dollars literally are millions bring both in to mentioned, with our investing of vivo our products in animal as that also customers and but research technical data, propositions validated also forward and we vitro build capabilities, Dan we're value our out events, real As

marketplace. give really together concepts in two these the So a differentiating us advantage

are is to focus products demand. differentiating and with sustainability it's production really, of designed value, system, opportunities do support and our is that going thing really our to economics in our truly and natural develop leveraging to health, improving our unique nutritional advantage, customers. of And creating novel diet, So we're us our to to really and the improve work an immune be ingredients. the our to support elements about in and the optimal our to mineral. production support through animal's most going going pursue healthy to the customers a that that is That's prominent This concert to marketing allow animal messages

are that it and So or that generally meat eggs food really why now? large to a this. to they're remove world there's changing They're right a demanding the in antibiotics, that's part milk, just around as this for in of and general. and through chain. for healthy as pharmaceuticals so they way a that Consumers sure eating sustainable, is move supply Fred subtherapeutic mentioned, purchase opportunity production remove rapid Well, as themselves their They are and can is the produced to make want families. pulling

our really customers, change, same value. support as Now at antibiotics industry, alternatives which a time, make really to They as economics shift equal that provide effective the They're paradigm they we optimal we've this we that in the ensure for is want compounds. production got that work. remove

And so production good to we support economics. have

to really safe have and have be seasonal be animal with withdrawal and easy add ROI. They a have to to in compelling easy products provide requirements, no to simplicity. the for application Our handle,

from diets, of this antibiotics risks can removed alternatives offer they're really All in resistance. had terms bring allow sustainable value, of replace that and us provide to of reduce natural a that our will as portfolio products customers that the pharmaceuticals

the the require They handle they're the types and be want modes So are demand. mentioned what that are require? seasonal. products and look have in And see validated They customers for apply to characteristics products to want I performance. customers that They to do our as clear buying previously, easy Those of of action. working. good know to

on use And animals of supporting products, or maintain gut through and health the no the food safety. I that that balancing full our and system, of or do we All the of gut. a We're proven performance goes healthy [indiscernible] to digestion impacts [indiscernible] residues our withdrawal, as together performance the customers. immune mentioned, metrics, expectations improve so this having that positive going

alike. consumers are very and All to of these our critical customers elements to

are animals, all we're In these terms marketplace; we swine, and monogastric, beef that poultry pursue. [indiscernible] ruminants, to where by of going in cattle, so will companion addressable aquaculture, markets of and Amlan the be targeting markets and

targeted Our a mining, is in with it’s an the can is our eight commercialization, clay. physiochemistry have like elements us by to That's ensure that vertically to company sustainable in Dan advantage. from customers truly mentioned, bring [indiscernible] production differentiating on play, going unique the industry efficacies, integrated products. allow in all balanced for and quality legacy for of our to to consistency products our and create plus unique various unique species as a in their various this It and capitalizing company

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US$X and moment. X.X using been at in where the the of still of million below the very antibiotic a about opportunity, still that look can antibiotics our we specifically get a see a year, amount. U.S. breakdown can is we that market in you'll is best the these markets terms numbers, they're are which kilograms where species So And by you the at substantial look is volatile. market the has it's declining, in I'll but see discuss If billion. if about at here estimated It graphs market we global And used.

If et over how cattle, years. chicken, on the down And you can you by swine, last been there's the cetera. we've general you this look decline few see over a seen breaks that see the right, on graph

but application. alternatives, therapeutic the antibiotics we bring the and increase year to very forward. from a when will is is a cattle But hungry However, preceding, typical alternatives, down. subtherapeutic trend for slight that is antibiotics very and did very products the Still respond market. of Producers better market might and in swine market, certainly often quite see upticks the are which have overall use last with because like with of Amlan [indiscernible] the general large removed year

those in position we products. will specialty how develop So the marketplace? We'll

to performance. to and commodity stability broad go have customers life, with of provide a this action side customers, based price chart. diet, we’ll in going top to stability things both customers. targeted to and bottom going shelf the we the up have to not of spectrum all an down feed that we're that going flow deliver modes again, the multiple of bring of route. products that on And handling curve, us down allowing to thermal and demand. animal this We're value, the going side proposition our So go We're We're to

can animal productivity important and also with So a poultry species. pursue. customers. look but a to deliver. multibillion focusing have to us at going very dollar we all a provide proposition We're benefits companion and We're products overall, ruminants overall also. addressable we're and for support on healthy, to range market pursuing We're we that swine, It's going to for animals our of sustainable that well wide positioned support be

We have pure clay solutions.

other We have the into underpinned a it's We And formulated be products. can bioactives really also diet. for by Oil-Dri. carrier

that a mineral are XX clay value to amulet in of developing to over producer years customers. We leverage expertise with our solutions, vertically we're to going deliver really integrated and

turn the Jaffee, it President Dan that, our presentation. with CEO, over Q&A So and for of portion I'll the to

Dan Jaffee

be your Leslie listening webcast. must field going for shareholders questions. the relevant you thank We're questions. to to going Question the and Please meeting. to using pertinent to our and Ask the or is Wade, you, our remarks Thank a meeting the brought the before up submit open to presentation. questions to And Questions on moderate matters the floor

one So Leslie, with first? we going which are

Leslie Garber

for And first protect does from Center Smith, question intellectual operating its property Investing. Performance how comes Robert he our the in company China? the So asked while

Dan Jaffee

Laura?

Laura Scheland

Sure.

of where IP strategy high value infringement. we a risk have analysis great countries, and high as So opportunity, countries countries Oil-Dri's risk with IP countries, well as potential global of includes theft an

recognize enforced filed patent applications both trademarks both we register be of patent enforcement do trademarks definitely and and we rights IP While and and difficult, apply for China. that jurisdictions for have can we in

-- biggest we that are given the the can't aspects on easily Amlan's be value it's registrations, based the but that rely defense replicated. solely protect the of products concerns, our about is fact business. to enforceability not is on the Practically speaking, However, do our not registrations

and and our our our or sales team this best lightly So, key process, not the swapped closely to switch and close in with and their defense Therefore, out surely accounts products knowledge, for relationships sales been example, Especially with the and of our own before against to our products be long technical our provide key the trials, accounts are products customers our competitors' relationships reliable and cycle evaluate products our R&D develops customer making do performance they mentioned, unique relationships products. has trials really mineral. performance technical with exemplary In is that our and knockoff substitutes. customers to the the our team protect to with service. works previously our of and while proves

Dan Jaffee

Thank you, Laura.

Leslie Garber

the some discourage Richards Okay. I feel may liquidity a interest private about The stock. asks, extremely comes high [ph], spread in concerned next from the question bid-ask Lawrence the investor. He of stock. I'm the

While buybacks, million the consider share the are split? appreciate shares. liquidity from circumstances I what they low X continuously an stock Under Oil-Dri reducing might already a

Dan Jaffee

be meeting the for and you coming thank the annual sure we Board question. Board would be meeting And Lawrence, that something I'll it's it consider. your valid and we have up after do this and a with a This question Board. discuss address would

it consider but that meeting. it's to And Not a sure will question. Board today's advisement so we're going we just at take do it anything, under good

Laura Scheland

Thank you.

Leslie Garber

a team in behind environment. for everyone detail Thank to Oil-Dri from and investor. further animal [ph], business? question Star Dan, for the a private Ethan reasons the difficult work next The excitement health your at please you comes you hard could the the

Dan Jaffee

Jay energy a Wade team health a trials to incredibly us they really from data, is joined minute, Harold honestly, and our globe away into shift like technology, the mean, the -- he way from plunge it's it's joining that looking they're that's question. teammates our joining know say, do as know. they the Wade, should the really on me, with in team. first wait our be who And join, a side, I because you marketing And then and absolutely have everyone could a in I don't doing, all that me maybe love because for to looking and maybe at and heard animal for and this took at is anything taking seeing professionals done, antibiotics. And the Yes, No, talented this educational rebuild -- I joining we've paved I what like been mineral to going great someone so all they're time much. us they're do an they able take same Fred, a Chuck, this. and on the Fred lot reason, his someone and of And of background, But ought of us are our sort they definitely value the love at Fred look and since maybe experience Heath this sees and if too. I

of understand around really building it's clay point the and with believe that. with started difference. is started that people that It our it team unique So -- the

on, place have be Cro-Magnon because inferred couldn't of and Mother doing know mining don't portfolio billions have terms years Walgreens go of wouldn't get and they in proven selectively Q We when of tons or in ago. We CVS if what processing we maximize life, total K. put reserves lifetime. hundreds what in to disclose XXX our million, in we couldn't likely I we're and But needed our Nature them. man to here our because Earth what already is antibiotics absolutely sustain and But and millions in of say unlimited so honestly our reserve

doing perfect is trying earth that's All what So enhance And clearly, the what to is doing. need. we're that and we supplying we're that.

offensive was And competition strategy. so the prior our really letting the dictate regime

were So in letting is selling or we it. the them dirt whatever reality, painting unique our they as mineral and mineral our proposition. When define were

We our has they it. world. issue globe. really and -- balance Fred the trials. even are is the let to major being to so anybody trials alone phone forced that And The the appointments, with were around couldn't get out let's assembled, we team -- we the get now And up leading those with players in pick

strong that times said the over do year. as for knock to of at so major mouth the dominoes the in is the coming. markets now, in of first started this best And as time in and just them Let's all we we've the U.S., the word exact industry it's ever

that confident we're going and and coming. Aaron do to fill feel sure the for can make you in that you get effort challenge the to make call excitement. take of is out But sure my we believe Molly And what now can all I a tsunami we lot So to that orders, it. front is I of it's coordinated

question. So your for we it. that hoping yes, to -- be I hope it were But answers used

They business happen. see actually major, starting the major value. They companies Now That's to why doing it's to clay. who very know shipping they're We're buying they're actually are sophisticated. our with us.

dollars IP clay’s millions unique source, claim the else both in data nobody have to got we've of that vivo We in way our that quality and surrounding vitro, all which and the of activity. can

So very it exciting. is

Leslie Garber

from on We'll announcements to hire from you hiring to Advisors. asks, of personnel on or expanding Oil-Dri Wealth Okay, function Bair move for question were internal LinkedIn LinkedIn great. analysts. new next lately, many and postings due had personnel Are positions numerous retirement? He needs turnover the have John I've these Ascend seen a or

Dan Jaffee

same have brought about embodies what's who that teammates very work-life is and you WE CARE. all core pulling people, question. And I values. our desired we team a those of believe of be not CARE summarized think you a performance. and new to in direction embody ethics I if And of they maximize excellence. happened values. then values, Oil-Dri, are and in everybody And balance. to war, necessarily corporate by a -- expanding is your turnover. culture had accountability, of were have core the Fred embracing as some tug respect he's acronym and I is you that is well. who a needs W to our we Fred absolutely It tell change. get to we can along communication, then is Great combination E WE our Those

are While that and move. are ribbon pulling people pulling some in some people direction other doesn't another direction

exciting. same and are direction, it's all And so the in very pulling we

So I'm had we've had no ways bring going where retirements, we've we've and make had but way teammates desire we've to to expansion and definitely had teammates. part call with turnover then to what other certain in for

really it's even it's the much incredible and in ago. a today team year different that really So have is we shape team a

Leslie Garber

comes are Great. more consumers the lower cat both from The better question continuing quality Pride He customers new to private to prices? U.S. offers label brand, next extent the choosing Canada? And asks, Star. for what and branded add are Cat's at Ethan litter you in which both and

Dan Jaffee

that have can Ethan. great to Jessica, you answer line. you your love open question, up And I'd question. Yes,

Jessica Moskowitz

Sure. the continuing are Ethan. well as we new and both customer customer. organic existing customers to Thanks new question, our acquisition via in Yes, as grow bring for within growth

private branded seeing both and the on new absolutely So label the side. customers

concern distribution, two overall We've years, in at great an repeat around In we and share as for business, last across look market [indiscernible] consumer we're [indiscernible] two a seeing look just the last mentioned, we branded our you even just improvement the demand. a growing, for seeing product we purchases what And got question years year and the value. great across elevated your terms are expanded more as last of branded, sentiment.

label. of So private as well the direction as very optimistic about brand the

Dan Jaffee

Great. Thank you.

Next question?

Leslie Garber

to facing Oil-Dri Next capture heat Is the your expenditure mining question extra clay product able operations? as from reuse any capital John you and related to operations relates it from kiln any costs to Are reducing and Bair. emissions? processing generated

Dan Jaffee

appreciate you that John, He's Vice it. Aaron, field line would of Warehousing. great Manufacturing Christiansen. of please up President I'd operator, one, Aaron the question. And our And if and open

Aaron Christiansen

line. Yes. now? Dan, you It hear me like can my looks they’ve unmuted

Dan Jaffee

you’re on. Yes,

Aaron Christiansen

take good one. take a I’d question. that’s different Yes, a to that ways. love to I'm of couple going

heat finishing factories from maybe opposite our kiln. actually an We're just generator of in way power that turbine is takes inferred that's our So one one investment the and the to latent fuel question. the in a

in to to California a homerun state And At to cogenerate forward summer. the we utility So of same sometime the obvious dryer. use and that. it's really learning look electricity. investment very The spring that this opposite. time, trying we our will the that We're own from heat cost power the come or make online the

question your in inferred of sites about all is our are and kilns of all thing other permitted. emissions our really The

standards Those those. emission We And areas and meet. obligated tighter in to continue and get we're facilities. many to to standards maintain tighter have

ability efficient So there a is with between more emission maintain direct standards get overlap to our and fuel.

our there's made meet plan Fortunately, the we sure emission continue to overlap make But definitely standards. two. allocations between capital to has

Dan Jaffee

Leslie? question. Thank Great you, Aaron.

Leslie Garber

the due worldwide? that is Bair. shipped faster worldwide manufactured what The and next Amlan Are products U.S. they shipping manufactured? from is And else supply is not, if are John to hindering question difficulties? chain If also in growth so, where

Molly VandenHeuvel

Right.

Molly So that answer you. VandenHeuvel. I'll is this for

the freight worldwide. ocean is the ocean the have bookings different increased. So yes, and shipped there. on manage so It significantly difficult we It And worldwide. times we still full in no transportation lead constraining over, and We've is ship within talked our ocean key very make we U.S. products that we are the several the about is Amlan manufactured market, -- mineral that sure global want freight times to have freight control to our U.S. get

book it takes expansion weeks not pre-pandemic It So just example, to from sail. to free, as four just eight went to time weeks. one so the and ocean

eight a doesn't just So transportation to book take weeks the time. can that vessel include

opportunities seeing customers. are the ocean we ramp that's as seeing. And the So constraint lead we're us a biggest the it is get product for up, long on time our into to

Dan Jaffee

Great. Thank you.

business with We that doing that ag is cranking edible renewable business, our by businesses again, I very non-edible purification up and just doing our got commenting oil do industrial the wrap is So businesses doing and very and diesel just well. well, and purification really well. is doing the are the of fluids all sports our want to Q&A. concludes business, well,

upon are need pistons all back obviously, of sure make what they firing. get that time i.e. incumbent unique margins it's us getting period to properly where where we're value And we're to a be. the to So doing, prices it's our

focused. we're So that's where XXX%

raise here years. up, of going go articles temporary can continue thing or is inflation the to is as tiered a progress. And set. all to Everything which -- whether for to can You'll you see continue is we're sorts on costs see just you stay read a that prices continue to to I a few

assuming here we're how strategy. we're it's our margin stay approaching to that's repair and So

So was to it's want just teammates year it distancing workers and again, made in I frontline It thanking the then of our to of our in adhering because we much. and out our we wearing social fiscal focus thank a of you challenges started by plants at COVID many very ways, -- due possible kept lots and the I record leadership of when close down really all really ways. way keeping And many they our each and plants, of mask facilities. out did the to our necessary, COVID the by strict

So again we'll thank of to the you, quarter. And next at you everybody. end talk

Operator

for have day. joining pleasant and Thank concludes today's a That conference. you

Oil-Dri Corporation of America (ODC) 9 Dec 212022 Q1 Earnings call transcript