Oil-Dri Announces Plans to Raise Prices on its Industrial and Automotive Absorbent Products

Rhea-AI Summary

Oil-Dri Corporation of America (NYSE: ODC) announced plans to raise prices on its industrial and automotive absorbent products by 15% to 20% in Q4 2022. This decision stems from the necessity to offset increased costs in packaging, natural gas, labor, and manufacturing, as explained by President and CEO Daniel S. Jaffee. The company is focused on pricing adjustments, production optimization, and cost reductions to restore margins to historical levels. Sales representatives will provide customers with additional pricing details.

Positive

• Planned price increase of 15% to 20% on absorbent products could enhance revenue.
• Focus on cost reduction and production optimization may lead to improved profit margins.

Negative

• Rising costs in packaging, natural gas, and labor may indicate ongoing inflationary pressures.

CHICAGO, April 01, 2022 (GLOBE NEWSWIRE) -- Oil-Dri Corporation of America (NYSE: ODC) today announced that it is notifying customers of plans to raise prices on its industrial and automotive absorbent products during the fourth quarter of fiscal year 2022. These price increases will range from 15% to 20%, depending on the product.

“As we continue to operate in an inflationary environment, it is necessary to raise prices to offset higher packaging, natural gas, labor, and other manufacturing costs,” said Daniel S. Jaffee, President and Chief Executive Officer. “Pricing actions, production optimization, and cost reduction remain key objectives for the Company, as we navigate these challenging conditions and strive to restore our margins to historical levels.”

Oil-Dri sales representatives will communicate additional details of the price increase to customers directly.

About Oil-Dri
Oil-Dri Corporation of America is a leading manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, bleaching clay and fluids purification, agricultural ingredients, sports field, industrial and automotive markets. Oil-Dri is vertically integrated which enables the Company to efficiently oversee every step of the process from research and development to supply chain to marketing and sales. With over 80 years of experience, the Company continues to fulfill its mission to Create Value from Sorbent Minerals. To learn more about the Company, visit oildri.com.

^{Category: Company News}

Contact:
Leslie A. Garber
Manager of Investor Relations
Oil-Dri Corporation of America
InvestorRelations@oildri.com
(312) 321-1515

 

FAQ

What price increase is ODC announcing for its products in 2022?

Oil-Dri Corporation is raising prices on its industrial and automotive absorbent products by 15% to 20% in Q4 2022.

What factors are prompting ODC's price increase?

The price increase is necessary to offset higher costs in packaging, natural gas, labor, and manufacturing.

How is ODC planning to manage its costs amidst inflation?

ODC aims to implement pricing actions, optimize production, and reduce costs to restore its margins.

When will the price increase take effect for ODC?

The price increase is set to occur during the fourth quarter of fiscal year 2022.

Who communicated the price increase at ODC?

The price increase was announced by President and CEO Daniel S. Jaffee.