The Clorox Company
CEO : Ms. Linda Rendle
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q2 | 1.4% YoY | 32.7% | 37.3% | 2023-02-02 |
Kevin Jacobsen says,
Consumption and Share
- Consumption increased by 6%.
- The company held share in track channels in the U.S.
- The company continues to grow shares internationally.
Record Cost Savings
- The company delivered a record cost savings for the quarter.
- This is the strongest quarter the company has had in the last 10 years.
Supply Chain Operations
- The company made very good progress improving its supply chain operations in spite of the ongoing disruptions.
- The company hit a record case fill rate since the pandemic has begun.
Timing Shifts
- Cold and flu season started earlier than anticipated and peaked in Q2, which pulled forward some of the shipments for cleaning and disinfecting products.
- Merchant timing shifts provided some benefit to the quarter.
Cost Savings
- The team was able to pull forward some of the benefit of the record cost savings.
- The company is on track for the full year to have a very strong year.
Linda Rendle says,
Q2 Results
- Organic sales growth in three of four segments
- Gross margin expansion
- Double-digit earnings growth
Updated Full Year Outlook
- Good progress through building margin
- Driving top-line momentum
- Executing against Ignite strategy for long-term growth
- Advancing innovation pipeline
- Delivering cost savings
- Taking additional cost-justified pricing actions
- Confident in leading product portfolio in essential categories
- Using levers to recover margin and drive long-term growth
Operating Environment
- Expect volatility and challenges to remain
- Continuing to invest in brands, categories and capabilities
- Protecting value proposition of products
Q & A sessions,
Gross Margin Expansion
- Returned to gross margin expansion in Q2
- Expected to build on it in Q3 and Q4 with additional 200-300 basis points of expansion
- Rebuilding margins will take some time
Top Line Momentum and Investments
- Continuing to maintain top line momentum and prioritize investments in digital transformation and streamlined operating model
- Expecting acceleration in back half of the year for organic sales growth
Pricing and Cost Savings
- Fourth round of pricing in effect, still uncertain about how it will play out
- Expecting more volume deleveraging in Q3 with the impact of the fourth round of pricing
- Continuing to drive pricing and cost savings to rebuild gross profit and margin
Supply Chain Normalization
- Seeing improvements from supply chain disruptions and normalizing supply chain
- Reducing safety stock levels as supply chain normalizes
- Dealing with intermittent supply chain disruptions, but seeing less disruptions than before
Inflation and Cost Environment
- Anticipating a moderating cost increase, but still seeing inflationary environment all year long
- Resin is a cost tailwind, but most other key buys are seeing cost increases on a year-over-year basis
- Expecting declining impact from commodity costs as we move through the year
No bad stock 