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Dec 31, 2023
Clorox Q2 2024 Earnings Report
Clorox's Q2 2024 earnings reflected a strong recovery from the cyberattack, with net sales increasing and gross margin expanding.
Key Takeaways
Clorox reported a 16% increase in net sales to $1.99 billion, driven by higher volume as the company rebuilt customer inventories following the August cyberattack and favorable price mix. Gross margin increased by 730 basis points to 43.5%. Diluted EPS decreased by 6% to $0.75, while adjusted EPS increased by 120% to $2.16.
Net sales increased by 16% to $1.99 billion, with organic sales up by 20%.
Gross margin increased by 730 basis points to 43.5% due to pricing and cost-savings initiatives.
Diluted EPS decreased by 6% to $0.75, including charges related to pension plan settlement, digital investments, and the cyberattack.
Adjusted EPS increased by 120% to $2.16, driven by higher net sales and gross margin expansion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company updated its fiscal year 2024 outlook, expecting net sales to be down low single digits and gross margin to be up about 200 basis points. Diluted EPS is now expected to be between $3.06 and $3.26, while adjusted EPS is expected to be between $5.30 and $5.50.
Positive Outlook
- Progress made in the second quarter reflected in updated net sales outlook.
- Raise in expectations for the second half of the fiscal year.
- Gross margin expected to be up about 200 basis points.
- Benefit of pricing actions, cost savings and supply chain optimization.
- Effective tax rate is now expected to be between 22% and 23%.
Challenges Ahead
- Net sales are expected to be down low single digits.
- 5 points of unfavorable foreign exchange rates primarily due to the devaluation of the Argentine Peso.
- Supply chain inflation.
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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