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Clorox
🇺🇸 NYSE:CLX
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OverviewEarningsDividends
•
Dec 31, 2022

Clorox Q2 2023 Earnings Report

Clorox reported better-than-expected results in the second quarter of fiscal year 2023, driven by strong execution, brand relevance, and pricing and cost savings efforts. Net sales increased slightly, and adjusted EPS saw a significant rise.

Key Takeaways

Clorox's Q2 2023 results showed a 1% increase in net sales to $1.72 billion, driven by favorable price mix, with organic sales up 4%. Gross margin improved to 36.2%. Diluted EPS increased 43% to $0.80, and adjusted EPS increased 48% to $0.98. The company is updating its fiscal year 2023 outlook, expecting net sales to be between a 2% decrease to a 1% increase and adjusted EPS to be between $4.05 and $4.30.

Net sales increased 1% to $1.72 billion, with organic sales up 4%.

Gross margin increased 320 basis points to 36.2%.

Diluted EPS increased 43% to $0.80, and adjusted EPS increased 48% to $0.98.

The company is updating its fiscal year 2023 outlook, expecting net sales to be between a 2% decrease to a 1% increase and adjusted EPS to be between $4.05 and $4.30.

Total Revenue
$1.72B
Previous year: $1.69B
+1.4%
EPS
$0.98
Previous year: $0.66
+48.5%
Organic Sales Growth
4%
Previous year: -8%
-150.0%
Gross Profit
$620M
Previous year: $558M
+11.1%
Cash and Equivalents
$168M
Previous year: $192M
-12.5%
Free Cash Flow
$167M
Previous year: $124M
+34.7%
Total Assets
$6.05B
Previous year: $6.19B
-2.3%

Clorox

Clorox

Clorox Revenue by Segment

Forward Guidance

The company is updating the following elements of its fiscal year 2023 outlook: Net sales are now expected to be between a 2% decrease to a 1% increase (organic sales from flat to a 3% increase). Diluted EPS is now expected to be between $3.20 and $3.45, or a 14% to 8% decrease, respectively. Adjusted EPS is now expected to be between $4.05 and $4.30, or a 1% decrease to a 5% increase, respectively.

Positive Outlook

  • Net sales are now expected to be between a 2% decrease to a 1% increase (organic sales from flat to a 3% increase).
  • Diluted EPS is now expected to be between $3.20 and $3.45, or a 14% to 8% decrease, respectively.
  • Adjusted EPS is now expected to be between $4.05 and $4.30, or a 1% decrease to a 5% increase, respectively.
  • Foreign exchange headwinds continue to represent about a 2-point reduction in sales.
  • Gross margin increase of about 200 basis points, primarily due to the combined benefit of pricing, cost savings and supply chain optimization, more than offsetting continued cost inflation.

Challenges Ahead

  • Net sales are now expected to be between a 2% decrease to a 1% increase
  • Diluted EPS is now expected to be between $3.20 and $3.45, or a 14% to 8% decrease, respectively.
  • Adjusted EPS is now expected to be between $4.05 and $4.30, or a 1% decrease to a 5% increase, respectively.
  • Foreign exchange headwinds continue to represent about a 2-point reduction in sales.
  • Continued cost inflation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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