https://assets.capyfin.com/instruments/678fdc13234e27009c5d5907.png avatar
Clorox
🇺🇸 NYSE:CLX
View Company
OverviewEarningsDividends
•
Mar 31, 2023

Clorox Q3 2023 Earnings Report

Clorox's Q3 2023 earnings reflected net sales increase driven by favorable price mix and organic sales growth across all segments, alongside gross margin expansion, but diluted EPS decreased due to a noncash impairment charge.

Key Takeaways

Clorox reported a 6% increase in net sales to $1.91 billion, driven by favorable price mix and an 8% increase in organic sales. The gross margin increased by 590 basis points to 41.8%. However, diluted EPS decreased to a loss of $1.71, impacted by a noncash impairment charge. Adjusted EPS increased by 15% to $1.51.

Net sales increased by 6% to $1.91 billion, with organic sales up 8%.

Gross margin increased by 590 basis points to 41.8% due to pricing and cost savings initiatives.

Diluted EPS decreased to a loss of $1.71, including a noncash impairment charge.

Adjusted EPS increased by 15% to $1.51, driven by pricing and cost savings.

Total Revenue
$1.92B
Previous year: $1.81B
+5.9%
EPS
$1.51
Previous year: $1.31
+15.3%
Organic Sales Growth
8%
Previous year: 2%
+300.0%
Gross Profit
$800M
Previous year: $649M
+23.3%
Cash and Equivalents
$242M
Previous year: $241M
+0.4%
Free Cash Flow
$285M
Previous year: $166M
+71.7%
Total Assets
$5.82B
Previous year: $6.32B
-8.0%

Clorox

Clorox

Clorox Revenue by Segment

Forward Guidance

The company is updating its fiscal year 2023 outlook, expecting net sales to increase between 1% and 2% and organic sales to increase between 3% and 4%. Gross margin is expected to increase between 250 and 300 basis points. Adjusted EPS is now expected to be between $4.35 and $4.50.

Positive Outlook

  • Net sales are now expected to be between a 1% and 2% increase.
  • Organic sales are now expected to be between a 3% and 4% increase.
  • Gross margin is now expected to increase between 250 and 300 basis points.
  • Adjusted EPS is now expected to be between $4.35 and $4.50.
  • Savings for fiscal year 2023 are now expected to be about $35 million.

Challenges Ahead

  • Foreign exchange headwinds continue to represent about a 2-point reduction in sales.
  • Effective tax rate is now expected to be about 37%, reflecting the impact from the impairment charge in the VMS business.
  • Diluted EPS is now expected to be between $0.45 and $0.60, or an 88% to 84% decrease, respectively.
  • Selling and administrative expenses are now expected to be about 16% of net sales, including about 1.5 points of impact from the company's strategic investments in digital capabilities and productivity enhancements.
  • The timing of charges has been adjusted as plans continue to be refined.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Clorox