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Clorox Reports Q4 and Fiscal Year 2020 Results, Provides Fiscal Year 2021 Outlook
OAKLAND, Calif., Aug. 3, 2020 – The Clorox Company (NYSE:CLX) reported a 22% sales increase, including double-digit growth across all reportable segments, and a 28% increase in diluted net earnings per share (diluted EPS) for its fourth quarter, which ended June 30, 2020. For fiscal year 2020, the company reported sales growth of 8% and a 16% increase in diluted EPS.
“I’m pleased that we’ve delivered a quarter of exceptional results, fueled by strong demand for our products that we’ve been privileged to provide in support of public health and to serve some of the essential needs of consumers as they’ve had to stay at home more,” said Clorox Chair and CEO Benno Dorer. “These results could not have been possible without dedication and strong execution by our people, who have always been guided by our core value Do the Right Thing.”
Dorer added: “Guided by our IGNITE Strategy, we remain committed to building on this momentum through deliberate and aggressive investments to support our ambition of accelerating long-term sales growth.”
This press release includes some non-GAAP financial measures. See "Non-GAAP Financial Information" at the end of this press release for more information.
Fiscal Fourth-Quarter Results
Following is a summary of key fourth-quarter results. All comparisons are with the fourth quarter of fiscal year 2019, unless otherwise stated.
|●||22% sales increase|
|●||$2.41 diluted EPS (28% increase versus year-ago quarter)|
In the fourth quarter, sales increased 22%, driven by double-digit volume growth in all reportable segments due to COVID-19 and consumers spending more time at home, which was partially offset by 2 points of impact from unfavorable foreign currency exchange rates. Organic sales1 were up 24% for the quarter.
The company’s fourth-quarter gross margin increased 170 basis points to 46.8% from 45.1% in the year-ago quarter. The increase in gross margin – the seventh consecutive quarter of year-over-year gross margin expansion -- reflects the benefit of volume growth and cost savings initiatives, partially offset by higher manufacturing and logistics costs.
Clorox delivered earnings of $310 million, or $2.41 diluted EPS, compared to $241 million, or $1.88 diluted EPS, in the year-ago quarter, representing a 28% increase in diluted earnings per share. Diluted EPS results reflect higher sales and the benefit of cost savings, partially offset by higher selling and administrative expenses, manufacturing and logistics costs, and advertising investments.
Key Segment Results
In the fourth quarter of fiscal year 2020, the company realigned its reportable segments following operational and systems integration. The Digestive Health and Dietary Supplements business units were combined into a new Vitamins, Minerals and Supplements business unit, and the Laundry and Home Care business units were combined to create the Cleaning business unit. These newly established business units, along with the Professional Products business unit, now make up the new Health and Wellness reportable segment due to their shared economic and qualitative characteristics.2
1 Organic sales growth/(decrease) is a non-GAAP measure. See “Non-GAAP Financial Information” at the end of this press release, including the reconciliation of organic sales growth/(decrease) to net sales growth/(decrease), the most comparable GAAP measure.
The following information was filed by Clorox Co (CLX) on Monday, August 3, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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