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Jun 30, 2024
Clorox Q4 2024 Earnings Report
Clorox reported Q4 and FY24 results, and provided FY25 outlook.
Key Takeaways
Clorox reported a decrease in net sales by 6% to $1.9 billion, driven by the Argentina divestiture, unfavorable price mix, and lower volume. However, gross margin increased by 380 basis points to 46.5%. Diluted EPS increased by 22% to $1.73, and adjusted EPS increased by 9% to $1.82.
Net sales decreased 6% to $1.9 billion; organic sales decreased 3%.
Gross margin increased 380 basis points to 46.5%.
Diluted EPS increased 22% to $1.73, and adjusted EPS increased 9% to $1.82.
Company announced sale of its Better Health Vitamins, Minerals and Supplements Business.
Clorox
Clorox
Clorox Revenue by Segment
Clorox Revenue by Geographic Location
Revenue by Segment
Health and Wellness Revenue
CapyFin.comHousehold Revenue
CapyFin.comLifestyle Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
Clorox expects net sales to be flat to down 2% and adjusted EPS to be between $6.55 and $6.80 for fiscal year 2025.
Positive Outlook
- Organic sales are expected to be up 3% to up 5% excluding about 2 points of negative impact from the divestiture of the company's business in Argentina and about 3 points of negative impact from the expected divestiture of the Better Health VMS business.
- Gross margin is expected to be up about 100 basis points, primarily due to the benefits of holistic margin management efforts, partially offset by cost inflation and higher trade promotional spending.
- Selling and administrative expenses are expected to be between 15% and 16% of net sales, which includes about 150 basis points of impact from the company's strategic investments in digital capabilities and productivity enhancements.
- Advertising and sales promotion spending is expected to be about 11% to 11.5% of net sales, reflecting the company's ongoing commitment to invest behind its brands.
- Adjusted EPS is expected to be between $6.55 and $6.80, or an increase between 6% and 10%, respectively.
Challenges Ahead
- Net sales are expected to be flat to down 2% compared to the prior year.
- Organic sales are expected to be up 3% to up 5% excluding about 2 points of negative impact from the divestiture of the company's business in Argentina and about 3 points of negative impact from the expected divestiture of the Better Health VMS business.
- Gross margin is expected to be up about 100 basis points, primarily due to the benefits of holistic margin management efforts, partially offset by cost inflation and higher trade promotional spending.
- The company's effective tax rate is expected to be about 28%.
- Adjusted EPS excludes the long-term strategic investment in digital capabilities and productivity enhancements, estimated to be about 60 cents, and a loss on sale related to the divestiture of the Better Health VMS business in the first quarter, estimated to be about $1.00.
Revenue & Expenses
Visualization of income flow from segment revenue to net income