On this page of StockholderLetter.com we present the latest annual shareholder letter from WD 40 CO — ticker symbol WDFC. Reading current and past WDFC letters to shareholders can bring important insights into the investment thesis.
2024 ANNUAL REPORT
UNLOCKING VALUE THROUGH GLOBAL EXPANSION WD-40 Company s largest growth opportunity is the geographic expansion of the blue and yellow can with the little red top. We estimate the potential global growth opportunity for WD-40 Multi-Use Product to be approximately 1.2 billion dollars and we are laser-focused on delivering long-term growth in our top 20 growth markets around the world. $1.65B BENCHMARKED SALES OPPORTUNITY* $1.2B GROWTH OPPORTUNITY 28% OF OUR BENCHMARKED OPPORTUNITY $453M FY24 WD-40 MULTI-USE PRODUCT NET SALES *Based on Industrial Value Added (IVA) / Purchase Price Parity (PPP) third-party benchmarking. WD-40 Company s estimated IVA/PPP figure is calculated using country GDP (PPP) data, which is a country s GDP converted into international dollars using the PPP index, then multiplied by the country s IVA (% GDP) figure.
LONG-TERM GROWTH AMBITION BY SEGMENT 176 COUNTRIES AND TERRITORIES | 62 UNIQUE TRADE CHANNELS | GLOBAL DIVERSIFICATION AMERICAS EIMEA ASIA-PACIFIC United States, Latin America and Canada Europe, India, Middle East, and Africa Australia, China, and Asia 5-8% 8-11% 10-13% COMPOUND ANNUAL GROWTH RATE TARGET COMPOUND ANNUAL GROWTH RATE TARGET COMPOUND ANNUAL GROWTH RATE TARGET WD-40 COMPANY OFFICE LOCATIONS TARGETING A COMPOUND ANNUAL GROWTH RATE FOR MAINTENANCE PRODUCTS IN THE MID-TO-HIGH SINGLE DIGITS ON A NON-GAAP CONSTANT CURRENCY BASIS. WD-40 COMPANY | 2024 ANNUAL REPORT 1
GLOBAL EXPANSION SPOTLIGHTING MARKET PERFORMANCE As I look around the world, all I see is opportunity. Our strategy is simple yet effective: make the blue and yellow can with the little red top available to buy in more places and ensure our product is always within arm s reach of our target customers, wherever they are located. By getting more cans in more hands, we re turning opportunity into success. Steve Brass 2 WD-40 COMPANY | 2024 ANNUAL REPORT CHINA INDIA BUILDING TRUST AND LOYALTY ENSURES FUTURE GROWTH AND RESILIENCE STRONG DISTRIBUTOR RELATIONSHIPS ARE ESSENTIAL FOR SUCCESS Despite a slower Chinese economy, we ve achieved remarkable growth by focusing on brand building and distribution. Our passionate, empowered workforce excels at cultivating strong relationships with distributors and end users through our unique product sampling and education programs. Our impressive growth in new channels, like e-commerce and new products such as WD-40 Specialist BIKE and WD-40 Specialist MOTORBIKE, showcases our brand s strength and the loyalty we re building in China. Over the last 10 years, we have achieved a compound annual growth rate for net sales in China of over 7%. In India, we unlocked the strong fiscal year 2024 growth via our strategic partnership with our skilled marketing distributor. Their unique approach to brand building via a nationwide program of product demonstrations delivered over 140,000 product demos to Indian trade end users, such as mechanics and industrial technicians. Our robust digital presence, consistently ranking highly within Amazon.in search results, reinforces our overall Fourby-Four Strategic Framework. With our marketing distributor s unique demand generation model, we re excited about unlocking WD-40 Brand s full potential in India moving forward. Over the last 5 years, we have achieved a compound annual growth rate for net sales in India of over 38%. Grace Zhang General Manager, China Philip Tweed Director of Growth and Development, Global Commercial Learning, Digital Commerce EIMEA and EIMEA Emerging Markets (India)
INDONESIA BRAZIL MEXICO UNLOCKING THE MANY GROWTH OPPORTUNITIES IN INDONESIA DIRECT OPERATIONS IN BRAZIL DRIVE 5X GROWTH IN SIX MONTHS DRIVING GROWTH THROUGH GEOGRAPHICAL REACH AND PREMIUMIZATION Indonesia, with over 280 million people, significant infrastructure investments, and a growing digital economy, remains one of Southeast Asia s largest and fastest-growing markets. Our Company s Four-by-Four Strategic Framework positions us to unlock this opportunity by focusing on key areas including geographical expansion, premiumization, and e-commerce. Through roadshows, technical education, product sampling, and targeting industrial end users, we re able to continue to grow WD-40 Brand market share in Indonesia. This effort has also contributed to Asia-Pacific s remarkable 58% gross margin in fiscal year 2024. Over the last 10 years, we have achieved a compound annual growth rate for net sales in Indonesia of approximately 8%. In Brazil, we unlocked value by shifting from a marketing distributor model to a direct operation, empowering our local team and leveraging global best practices to accelerate growth. In 2024, we acquired our longstanding marketing distributor and formed a strategic partnership. The transaction brought together the marketing distributor s established workforce, customer base, and distribution logistics with WD-40 Company s best-in-class marketing and brand building capabilities and resulted in growing our topline by 5x in just six months. Looking ahead, we are excited to drive growth in Brazil and Latin America, enhance operational efficiencies, and positively impact the communities we serve. In fiscal year 2025 we expect to achieve $7 to $9 million of net growth from this game-changing country. Our decision to begin selling directly in Mexico in 2020 has enabled us to make faster decisions, strengthen customer relationships, and focus sharply on brand building and marketing. In fiscal year 2024, we advanced our Four-by-Four Strategic Framework with a heightened focus on premiumization and geographic expansion. We established an industrial channel division, which quickly became our second-fastest growing sales division of the year. As we continue opening new sales channels, we are expanding the reach of our iconic blue-and-yellow can with the little red top, along with our broader product offerings. Over the last 10 years, we have achieved a compound annual growth rate for net sales in Mexico of nearly 14%. Daell Rollandiaz Business Development Executive, Indonesia Cesar Ornelas General Manager, Mexico Tiago D amico Vice President, Latin America WD-40 COMPANY | 2024 ANNUAL REPORT 3
 • shareholder letter icon 11/8/2024 Letter Continued (Full PDF)
 • stockholder letter icon 11/2/2023 WDFC Stockholder Letter
 • stockholder letter icon More "Specialty Chemicals" Category Stockholder Letters
 • Benford's Law Stocks icon WDFC Benford's Law Stock Score = 55


WDFC Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT

UNLOCKING VALUE THROUGH GLOBAL
EXPANSION
WD-40 Company   s largest growth opportunity is the geographic expansion
of the blue and yellow can with the little red top. We estimate the potential
global growth opportunity for WD-40    Multi-Use Product to be approximately
1.2 billion dollars and we are laser-focused on delivering long-term growth in
our top 20 growth markets around the world.
$1.65B
BENCHMARKED SALES
OPPORTUNITY*
$1.2B
GROWTH OPPORTUNITY
28%
OF OUR
BENCHMARKED
OPPORTUNITY
$453M
FY24 WD-40   MULTI-USE
PRODUCT NET SALES
*Based on Industrial Value Added (IVA) / Purchase Price Parity (PPP) third-party benchmarking. WD-40 Company   s estimated IVA/PPP figure is
calculated using country GDP (PPP) data, which is a country   s GDP converted into    international dollars    using the PPP index, then multiplied by the
country   s IVA (% GDP) figure.

LONG-TERM GROWTH AMBITION BY SEGMENT
176 COUNTRIES AND TERRITORIES | 62 UNIQUE TRADE CHANNELS | GLOBAL DIVERSIFICATION
AMERICAS
EIMEA
ASIA-PACIFIC
United States, Latin America and Canada
Europe, India, Middle East, and Africa
Australia, China, and Asia
5-8%
8-11%
10-13%
COMPOUND ANNUAL
GROWTH RATE TARGET
COMPOUND ANNUAL
GROWTH RATE TARGET
COMPOUND ANNUAL
GROWTH RATE TARGET
WD-40 COMPANY OFFICE LOCATIONS
TARGETING A COMPOUND ANNUAL GROWTH RATE FOR MAINTENANCE PRODUCTS IN THE
MID-TO-HIGH SINGLE DIGITS ON A NON-GAAP CONSTANT CURRENCY BASIS.
WD-40 COMPANY | 2024 ANNUAL REPORT
1

GLOBAL
EXPANSION
SPOTLIGHTING MARKET
PERFORMANCE
   As I look around the world,
all I see is opportunity.
Our strategy is simple yet
effective: make the blue
and yellow can with the
little red top available to buy
in more places and ensure
our product is always within
arm   s reach of our target
customers, wherever they
are located. By getting
more cans in more hands,
we   re turning opportunity
into success.   
Steve Brass
2
WD-40 COMPANY | 2024 ANNUAL REPORT
CHINA
INDIA
BUILDING TRUST AND
LOYALTY ENSURES
FUTURE GROWTH AND
RESILIENCE
STRONG DISTRIBUTOR
RELATIONSHIPS
ARE ESSENTIAL FOR
SUCCESS
   Despite a slower Chinese
economy, we   ve achieved
remarkable growth by focusing on
brand building and distribution. Our
passionate, empowered workforce
excels at cultivating strong
relationships with distributors and
end users through our unique
product sampling and education
programs. Our impressive growth
in new channels, like e-commerce
and new products such as
WD-40 Specialist   BIKE and
WD-40 Specialist   MOTORBIKE,
showcases our brand   s strength
and the loyalty we   re building in
China. Over the last 10 years, we
have achieved a compound annual
growth rate for net sales in China
of over 7%.   
   In India, we unlocked the strong
fiscal year 2024 growth via our
strategic partnership with our
skilled marketing distributor. Their
unique approach to brand building
via a nationwide program of
product demonstrations delivered
over 140,000 product demos
to Indian trade end users, such
as mechanics and industrial
technicians. Our robust digital
presence, consistently ranking
highly within Amazon.in search
results, reinforces our overall Fourby-Four Strategic Framework. With
our marketing distributor   s unique
demand generation model, we   re
excited about unlocking WD-40  
Brand   s full potential in India
moving forward. Over the last
5 years, we have achieved a
compound annual growth rate for
net sales in India of over 38%.   
Grace Zhang
General Manager, China
Philip Tweed
Director of Growth and Development,
Global Commercial Learning, Digital
Commerce EIMEA and EIMEA
Emerging Markets (India)

INDONESIA
BRAZIL
MEXICO
UNLOCKING THE
MANY GROWTH
OPPORTUNITIES IN
INDONESIA
DIRECT OPERATIONS
IN BRAZIL DRIVE
5X GROWTH IN SIX
MONTHS
DRIVING GROWTH
THROUGH
GEOGRAPHICAL REACH
AND PREMIUMIZATION
   Indonesia, with over 280 million
people, significant infrastructure
investments, and a growing
digital economy, remains one
of Southeast Asia   s largest and
fastest-growing markets. Our
Company   s Four-by-Four Strategic
Framework positions us to unlock
this opportunity by focusing on
key areas including geographical
expansion, premiumization, and
e-commerce. Through roadshows,
technical education, product
sampling, and targeting industrial
end users, we   re able to continue
to grow WD-40   Brand market
share in Indonesia. This effort has
also contributed to Asia-Pacific   s
remarkable 58% gross margin
in fiscal year 2024. Over the last
10 years, we have achieved a
compound annual growth rate
for net sales in Indonesia of
approximately 8%.   
   In Brazil, we unlocked value
by shifting from a marketing
distributor model to a direct
operation, empowering our local
team and leveraging global best
practices to accelerate growth.
In 2024, we acquired our longstanding marketing distributor and
formed a strategic partnership. The
transaction brought together the
marketing distributor   s established
workforce, customer base, and
distribution logistics with WD-40
Company   s best-in-class marketing
and brand building capabilities
and resulted in growing our
topline by 5x in just six months.
Looking ahead, we are excited to
drive growth in Brazil and Latin
America, enhance operational
efficiencies, and positively impact
the communities we serve. In fiscal
year 2025 we expect to achieve
$7 to $9 million of net growth from
this game-changing country.   
   Our decision to begin selling
directly in Mexico in 2020
has enabled us to make faster
decisions, strengthen customer
relationships, and focus sharply on
brand building and marketing. In
fiscal year 2024, we advanced our
Four-by-Four Strategic Framework
with a heightened focus on
premiumization and geographic
expansion. We established an
industrial channel division, which
quickly became our second-fastest
growing sales division of the year.
As we continue opening new sales
channels, we are expanding the
reach of our iconic blue-and-yellow
can with the little red top, along
with our broader product offerings.
Over the last 10 years, we have
achieved a compound annual
growth rate for net sales in Mexico
of nearly 14%.   
Daell Rollandiaz
Business Development Executive,
Indonesia
Cesar Ornelas
General Manager, Mexico
Tiago D   amico
Vice President, Latin America
WD-40 COMPANY | 2024 ANNUAL REPORT
3



shareholder letter icon 11/8/2024 Letter Continued (Full PDF)
 

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