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Sep 30, 2022
Clorox Q1 2023 Earnings Report
Clorox reported better-than-expected results in a challenging operating environment, reflecting brand strength and strong execution.
Key Takeaways
Clorox's Q1 2023 net sales decreased by 4% to $1.74 billion, with organic sales down 2%. Diluted EPS decreased by 40% to 68 cents, while adjusted EPS decreased by 23% to 93 cents. The company is maintaining its fiscal year 2023 outlook.
Net sales decreased 4% to $1.74 billion.
Diluted EPS decreased 40% to 68 cents.
Adjusted EPS decreased 23% to 93 cents.
Company is maintaining its fiscal year 2023 outlook.
Clorox
Clorox
Clorox Revenue by Segment
Clorox Revenue by Geographic Location
Revenue by Segment
Household Revenue
CapyFin.comLifestyle Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The company is confirming its fiscal year 2023 outlook with net sales from a 4% decrease to a 2% increase compared to the prior year (organic sales from a 3% decrease to a 3% increase) and adjusted EPS between $3.85 and $4.22.
Positive Outlook
- Gross margin increase of about 200 basis points, primarily due to the combined benefit of pricing, cost savings and supply chain optimization, offset by continued cost inflation.
- Selling and administrative expenses between 15% and 16% of net sales, including about 1.5 points of impact from the company's strategic investments in digital capabilities and productivity enhancements.
- Advertising and sales promotion spending of about 10% of net sales, reflecting the company's ongoing commitment to invest in its brands.
- Effective tax rate of about 24%, with year-over-year increase primarily reflecting lower excess tax benefits from equity compensation.
- Adjusted EPS between $3.85 and $4.22, or a 6% decrease to a 3% increase, respectively.
Challenges Ahead
- Net sales from a 4% decrease to a 2% increase compared to the prior year (organic sales from a 3% decrease to a 3% increase).
- Foreign exchange headwinds now represent about a 2-point reduction in sales from 1.5 points assumed in the prior outlook.
- Diluted EPS between $3.10 and $3.47, or a 17% to 7% decrease, respectively.
- Reflects continued normalization of demand in parts of the portfolio that saw the most significant surge over the last two years and progress rebuilding gross margin.
- Reflects the company's long-standing commitment to continue investing in its brands as well as a return to more normalized levels of incentive compensation and a higher effective tax rate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income