11.22.21
Brady Corporation reported its financial results for its fiscal 2022 first quarter ended Oct. 31, 2021.
Sales for the quarter ended October 31, 2021 were $321.5 million compared to $277.2 million in the same quarter last year. Sales for the quarter ended Oct. 31, 2021 increased 16%, which consisted of an organic sales increase of 7%, an increase of 8.3% from acquisitions and an increase of 0.7% from foreign currency translation.
By segment, sales increased 25.4% in Identification Solutions and decreased 7.8% in Workplace Safety, which consisted of an organic sales increase of 13.2% in Identification Solutions and an organic sales decline of 8.6% in Workplace Safety.
Income before income taxes and losses of unconsolidated affiliate increased 5.8% to $44.7 million for the quarter ended Oct. 31, 2021, compared to $42.2 million in the same quarter last year. Net income for the quarter ended Oct. 31, 2021 was $35 million compared to $33.5 million in the same quarter last year.
“Our investments in sales, marketing, and research and development over the last several years are paying off. These investments, coupled with increased customer demand, and the acquisitions completed in the fourth quarter of last year, helped us generate double-digit sales growth this quarter,” said J. Michael Nauman, Brady’s president and CEO.
“Our strong 16.0% year-over-year sales growth was driven by our Identification Solutions division which had total sales growth of 25.4% this quarter,” Nauman added. “We remain excited about the three acquisitions completed last year, which are performing at or above our initial expectations.
“Supply chains for certain components remain tight and we are experiencing inflation in many areas including wages, freight, utilities, and raw materials,” he continued. “Even with these inflationary pressures, our gross profit margin was still an enviable 48.2%, which was right in line with the gross profit margin experienced in the fourth quarter of last year. We believe that these gross margin challenges are temporary and once our pric-ing and efficiency initiatives catch up to the cost inflation, our strong sales growth and im-proved gross profit margins will drive significant bottom-line growth.”
“Brady is financially strong and continues to generate significant cash flow,” said Brady CFO Aaron Pearce. “We have been increasing our inventory levels to ensure that we can meet the ongoing strong customer demand and our accounts receivable increased due to the strong revenue growth we experienced this quarter.”
Sales for the quarter ended October 31, 2021 were $321.5 million compared to $277.2 million in the same quarter last year. Sales for the quarter ended Oct. 31, 2021 increased 16%, which consisted of an organic sales increase of 7%, an increase of 8.3% from acquisitions and an increase of 0.7% from foreign currency translation.
By segment, sales increased 25.4% in Identification Solutions and decreased 7.8% in Workplace Safety, which consisted of an organic sales increase of 13.2% in Identification Solutions and an organic sales decline of 8.6% in Workplace Safety.
Income before income taxes and losses of unconsolidated affiliate increased 5.8% to $44.7 million for the quarter ended Oct. 31, 2021, compared to $42.2 million in the same quarter last year. Net income for the quarter ended Oct. 31, 2021 was $35 million compared to $33.5 million in the same quarter last year.
“Our investments in sales, marketing, and research and development over the last several years are paying off. These investments, coupled with increased customer demand, and the acquisitions completed in the fourth quarter of last year, helped us generate double-digit sales growth this quarter,” said J. Michael Nauman, Brady’s president and CEO.
“Our strong 16.0% year-over-year sales growth was driven by our Identification Solutions division which had total sales growth of 25.4% this quarter,” Nauman added. “We remain excited about the three acquisitions completed last year, which are performing at or above our initial expectations.
“Supply chains for certain components remain tight and we are experiencing inflation in many areas including wages, freight, utilities, and raw materials,” he continued. “Even with these inflationary pressures, our gross profit margin was still an enviable 48.2%, which was right in line with the gross profit margin experienced in the fourth quarter of last year. We believe that these gross margin challenges are temporary and once our pric-ing and efficiency initiatives catch up to the cost inflation, our strong sales growth and im-proved gross profit margins will drive significant bottom-line growth.”
“Brady is financially strong and continues to generate significant cash flow,” said Brady CFO Aaron Pearce. “We have been increasing our inventory levels to ensure that we can meet the ongoing strong customer demand and our accounts receivable increased due to the strong revenue growth we experienced this quarter.”