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Jun 30, 2023
Clorox Q4 2023 Earnings Report
Clorox reported strong results driven by broad-based consumption across its portfolio.
Key Takeaways
Clorox reported a 12% increase in net sales to $2.0 billion, driven by favorable price mix. Diluted EPS increased by 75% to $1.42, and adjusted EPS increased by 80% to $1.67. The company delivered double-digit organic net sales growth in all reportable segments and achieved sequential quarterly improvement in gross margin.
Net sales increased 12% to $2.0 billion.
Organic sales were up 14%.
Diluted EPS increased 75% to $1.42.
Adjusted EPS increased 80% to $1.67.
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
Net sales are expected to be flat to up 2% compared to the prior year. Organic sales are expected to be up 2% to up 4%. Diluted EPS is expected to be between $4.65 and $4.95, or an increase between 290% and 316%, respectively, primarily due to the impact of the noncash impairment charge in the VMS business in fiscal year 2023. Adjusted EPS is expected to be between $5.60 and $5.90, or an increase between 10% and 16%, respectively.
Positive Outlook
- Gross margin is expected to increase by about 150 to 175 basis points, primarily due to the combined benefit of pricing, cost savings and supply chain optimization, offset by continued cost inflation.
- Advertising and sales promotion spending is expected to be about 11% of net sales, reflecting the company's ongoing commitment to invest behind its brands.
Challenges Ahead
- Net sales are expected to be flat to up 2% compared to the prior year.
- Organic sales are expected to be up 2% to up 4%.
- Selling and administrative expenses are expected to be between 15% and 16% of net sales, which includes about 1.5 points of impact from the company's strategic investments in digital capabilities and productivity enhancements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income