Oil-Dri Corp of America (NYSE: ODC)

Oil-Dri Corporation of America is a leader in developing, manufacturing and marketing sorbent products derived from hydrated aluminosilicate minerals such as calcium bentonite, attapulgite and diatomaceous shale; the company surface mines its clay on leased or owned land near facilities in Mississippi, Georgia, Illinois and California, producing both absorbent and adsorbent materials for a variety of applications.

Oil-Dri generates revenue primarily through the sale of its sorbent products, including cat litter (branded and private label), industrial and automotive absorbents, sports field products, fluid purification bleaching clays, agricultural and horticultural carriers, and animal health and nutrition solutions; the company also offers items not based on clay such as synthetic sorbents for spill cleanup, silica gel crystal cat litter, and plastic litter box liners, which are sold to retailers, wholesalers, industrial distributors, agricultural manufacturers, oil refiners and livestock producers.

Oil-Dri Corporation of America operates through two reportable segments: the Retail and Wholesale Products Group and the Business to Business Products Group.

• Retail and Wholesale Products Group: This segment produces and sells cat litter products (branded and private label), industrial and automotive absorbents, and sports field items, serving mass merchandisers, pet specialty stores, grocery and drug chains, dollar stores, online retailers, and distributors of industrial cleanup and sports turf materials.

• Business to Business Products Group: This segment provides fluid purification bleaching clays for edible oil and renewable diesel processing, agricultural and horticultural carriers for active ingredients, and animal health and nutrition solutions for livestock, serving oil refiners, agricultural chemical manufacturers, feed producers, and livestock producers worldwide.

Oil-Dri holds a leading position in the sorbent products market, competing against larger firms in both its retail and business-to-business segments; in the Retail and Wholesale Products Group, it faces six principal competitors, one of which is also a customer, yet differentiates itself through product innovation, a broad distribution network and strong customer service; in the Business to Business Products Group, the company contends with nine principal competitors where price and performance are key, and it leverages its technical expertise and global reach to maintain competitiveness.

The company serves a diverse customer base that includes retailers such as Walmart, mass merchandisers, pet specialty outlets, grocery and drug chains, dollar stores and online retailers, as well as industrial distributors, agricultural chemical manufacturers, oil refiners, feed producers and livestock producers; sales to Walmart accounted for approximately 19% of total net sales in the most recent fiscal year, while no other single customer represents 10% or more of revenue.