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Clorox
🇺🇸 NYSE:CLX
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•
Sep 30, 2024

Clorox Q1 2025 Earnings Report

Reported better-than-expected results, fully restored overall market share, and updated outlook.

Key Takeaways

Clorox reported a 27% increase in net sales to $1.76 billion, driven by higher volume due to lapping the cyberattack. Diluted EPS increased by 371% to $0.80, and adjusted EPS increased by 280% to $1.86. The company has raised its gross margin and EPS outlook for the year.

Net sales increased by 27% to $1.76 billion, driven by higher volume reflecting the lapping of the cyberattack.

Gross margin increased by 740 basis points to 45.8%, primarily due to higher volume and cost savings.

Diluted EPS increased by 371% to $0.80, driven by strong operational performance and lapping of the cyberattack.

Adjusted EPS increased by 280% to $1.86, primarily due to higher net sales and cost savings.

Total Revenue
$1.76B
Previous year: $1.39B
+27.1%
EPS
$1.86
Previous year: $0.49
+279.6%
Organic Sales Growth
31%
Previous year: -18%
-272.2%
Gross Profit
$807M
Previous year: $532M
+51.7%
Cash and Equivalents
$278M
Previous year: $518M
-46.3%
Free Cash Flow
$182M
Previous year: -$4M
-4650.0%
Total Assets
$5.5B
Previous year: $5.99B
-8.2%

Clorox

Clorox

Clorox Revenue by Segment

Forward Guidance

The company is updating its fiscal year 2025 outlook. Gross margin is now expected to be up about 100 to 150 basis points. Fiscal year diluted EPS is now expected to be between $5.17 and $5.42. Adjusted EPS is now expected to be between $6.65 and $6.90.

Positive Outlook

  • Gross margin is now expected to be up about 100 to 150 basis points, primarily due to the benefits of holistic margin management efforts.
  • Fiscal year diluted EPS is now expected to be between $5.17 and $5.42, a year-over-year increase of 130% to 141%, respectively.
  • Adjusted EPS is now expected to be between $6.65 and $6.90, a year-over-year increase of 8% to 12%, respectively.
  • Net sales are still expected to be flat to down 2%.
  • Organic sales are still expected to be up 3% to up 5%.

Challenges Ahead

  • Gross margin increase is partially offset by cost inflation and higher trade promotion spending.
  • Net sales are expected to be flat to down 2%.
  • Organic sales exclude about 2 points of negative impact from the divestiture of the company's business in Argentina.
  • Organic sales exclude about 3 points of negative impact from the divestiture of the Better Health VMS business.
  • Selling and administrative expenses continue to be expected to be between 15% to 16% of net sales.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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