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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.
Revenue by Segment
Revenue by Geographic Location
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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