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Mar 31, 2021
Clorox Q3 2021 Earnings Report
Clorox's sales remained flat, but the company is on track for its best full-year top-line growth in over 20 years.
Key Takeaways
Clorox reported flat sales in Q3 2021 compared to the previous year, with a diluted net loss per share of $0.49. Adjusted EPS was $1.62, a 14% decrease year-over-year. The company is on track to deliver its best full-year top-line growth in more than 20 years.
Sales were flat compared to 15% growth in the year-ago quarter.
Diluted net loss per share was 49 cents, a 126% decrease compared to the year-ago quarter, impacted by a pre-tax noncash impairment charge of $329 million.
Adjusted EPS was $1.62, a 14% decrease versus the year-ago quarter.
Gross margin decreased by 320 basis points to 43.5%.
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
Clorox expects fiscal year sales to grow between 10% and 13% and adjusted EPS to increase between 1% and 4%.
Positive Outlook
- Fiscal year sales are still expected to grow between 10% and 13%.
- Fiscal year organic sales continue to assume a 10% to 13% growth range.
- Fiscal year selling and administrative expenses are now expected to be below 14% of sales.
- Advertising and sales promotion spending is still anticipated to be about 11% of sales.
- The company’s effective tax rate is still expected to be in the range of 21% to 22%.
Challenges Ahead
- Gross margin is now expected to be down, primarily reflecting higher commodity and manufacturing and logistics costs.
- Fiscal year 2021 diluted EPS is expected to decrease between 19% and 16%.
- Expectation of moderating demand over the balance of the fiscal year.
- Fiscal year sales continue to assume about 1 point of contribution from the Saudi joint venture acquisition, offset by 1 point from unfavorable foreign exchange rates.
- Diluted EPS reflects assumptions for strong fiscal year sales performance, partially offset by an increasingly elevated cost environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income