John Baer's questions to Oil-Dri Corp of America (ODC) leadership • Q3 2025
Question
John Baer of Ascend Wealth Advisors inquired about the performance of the Amlan animal health division and the company's strategy for managing rising natural gas costs. He asked about the reasons for flat quarterly revenue in Amlan, potential impacts from tariffs, and the outlook for growth. He also questioned what alternatives to natural gas Oil-Dri is considering to power its kilns and reduce operating costs.
Answer
Wade Robey, President of Amlan International, explained that while Q3 revenue was flat, year-to-date performance remains strong and on target. He attributed the quarterly volatility to tariff issues and logistics challenges, which are being managed through closer collaboration with distribution partners. Aaron Christiansen, VP of Operations, addressed the energy question by stating that while the company has explored alternatives like fuel oil and coal, natural gas remains the most cost-effective fuel. He noted that Oil-Dri uses forward contracts to manage price risk and is continuously focused on optimizing fuel consumption and has shifted over half its forklift fleet to electric.