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Jun 30, 2020
Clorox Q4 2020 Earnings Report
Reported a 22% sales increase and a 28% increase in diluted net earnings per share for its fourth quarter.
Key Takeaways
Clorox reported strong Q4 2020 results with a 22% sales increase and a 28% increase in diluted EPS. The growth was driven by strong demand for their products due to COVID-19 and consumers spending more time at home.
Sales increased by 22% driven by double-digit volume growth in all reportable segments.
Organic sales were up 24% for the quarter.
Gross margin increased by 170 basis points to 46.8%.
Diluted EPS increased by 28% to $2.41.
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 anticipates sales growth ranging from flat to low single digits, reflecting the expectation for continued elevated demand through the first half of the fiscal year and a deceleration in the back half from lapping of the initial spike in demand from COVID-19.
Positive Outlook
- Continued elevated demand through the first half of the fiscal year.
- Fiscal year 2021 sales reflect about 1 point of positive impact from the company’s increased stake in its Kingdom of Saudi Arabia joint venture.
- Advertising and sales promotion spending is expected to increase to about 11% of sales.
- Diluted EPS outlook includes an estimated contribution of 45 to 53 cents in fiscal year 2021 as a result of the company’s increased stake in the Kingdom of Saudi Arabia joint venture.
- Investing aggressively in brand-building and category growth as well as in production capacity to meet heightened demand.
Challenges Ahead
- Significant uncertainty about future COVID-19 impacts related to various areas of its business.
- Deceleration in the back half from lapping of the initial spike in demand from COVID-19.
- Fiscal year 2021 sales reflect about 1 point of negative impact from foreign exchange rates, primarily in Argentina.
- On a full year basis, this one-time gain will be offset by the company’s expectations for a higher tax rate and foreign currency headwinds for the company.
- None
Revenue & Expenses
Visualization of income flow from segment revenue to net income