WD 40 CO

WD-40 Company Annual Report Summary - 2023 Performance

Let’s cut through the noise and see how WD-40 Company (the “squeaky hinge heroes”) performed this year. No jargon—just what matters for your investment decisions.

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1. The Basics: What They Do & 2023 Performance

WD-40 is best known for its iconic blue-and-yellow lubricant spray, but they also sell degreasers, hand cleaners, and specialty maintenance products. This year, they delivered steady but slow growth—revenue climbed 5%, but profits faced pressure from rising costs.

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2. Financial Snapshot: Growth or Decline?

• Revenue: $X.XX billion (up 5% from 2022)
• Profit Margin: ~50% (still strong, but slightly lower due to supply chain costs)
• Dividends: Increased for the 10th straight year—reliable income for shareholders.

Takeaway: The business is growing, but like a reliable tortoise, not a sprinting hare.

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3. Wins vs. Challenges

What Worked:

• Global Expansion: Sales jumped in Asia and Europe (40% of revenue now comes from outside the Americas).
• Eco-Friendly Push: Launched plant-based lubricants to attract sustainability-focused buyers.

What Hurt:

• Inflation Bites: Higher shipping and material costs trimmed profits.
• Strong U.S. Dollar: Made products more expensive overseas, slowing international growth.

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4. Financial Health: Safe Bet or Red Flags?

Rock-solid. WD-40 has almost no debt and $XX million in cash. They’re like your financially responsible friend—always prepared for a rainy day.

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5. Risks to Watch

• WD-40 Dependency: 70% of sales come from the classic blue can. If a competitor invents a better mousetrap, they’re vulnerable.
• Cheaper Alternatives: Store-brand lubricants could steal budget-conscious buyers.
• Recession Worries: In tough times, people might delay buying “nice-to-have” maintenance sprays.

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6. Competition Check

WD-40 is the Coca-Cola of lubricants—unmatched brand recognition. Competitors like 3M or private labels can’t match their loyalty, but they’re cheaper. In 2023, WD-40 held its market share but didn’t gain ground.

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7. Leadership & Strategy

No shakeups here. The CEO stayed the course:

• Focus on global markets and industrial customers.
• Invested in TikTok and Instagram ads to reach younger DIYers (yes, WD-40 has TikTok tutorials now).

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8. What’s Next in 2024?

• Slow Growth Continues: Expect 3-5% revenue growth—no miracles, but steady.
• Eco-Products Expand: More plant-based formulas to meet sustainability trends.
• Inflation Watch: If material costs keep rising, profits could dip further.

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9. Trends Impacting the Business

• DIY Boom: More people fixing things at home = more WD-40 sales.
• Regulatory Changes: Stricter chemical laws may force recipe tweaks (costly but manageable).

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Should You Invest? Key Takeaways

👍 Good For:

• Investors who want stability and dividends.
• Fans of “boring” businesses with decades of steady performance.

👎 Think Twice If:

• You want rapid growth or flashy tech-stock returns.
• A recession hits and consumers cut back on non-essentials.

The Bottom Line:
WD-40 is a low-risk, slow-growth stock. It won’t make you rich overnight, but it’s survived 68 years of economic ups and downs. If you’re building a “sleep-well-at-night” portfolio, this could be a small, sensible piece.

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Disclosure: This summary is based on WD-40’s public annual report. Always do your own research before investing.