11.03.16
The Clorox Company reported sales growth of 4% and an increase of 3% in diluted net earnings per share (EPS) from continuing operations for its first quarter ended September 30, 2016. On a currency-neutral basis, first-quarter sales grew 6%.
In the first quarter, volume grew 8%, reflecting increases in all reportable segments, including the benefit of the RenewLife digestive health business, which Clorox acquired in May 2016. Total company sales grew 4%, driven by strong volume growth, including 2 points from the RenewLife business, and the benefit of price increases in the company's international business.
The company’s cleaning operations—its laundry, home care, and professional products—reported 13% volume growth and 7% sales growth. Clorox said volume growth was driven largely by gains in home care, particularly record shipments of Clorox disinfecting wipes behind expanded club-channel distribution and increased merchandising support for the back-to-school season. Record shipments across a number of Clorox-branded products, including toilet bowl cleaners and disinfecting spray products, also contributed to segment volume results. Professional products also contributed to segment volume growth, reflecting strong gains across cleaning brands. The variance between volume and sales growth was due to unfavorable mix. Pretax earnings growth reflected higher sales and cost savings.
Clorox’s lifestyle segment, which includes its natural personal care operations as well as food and water filtration, recorded 1% volume growth and 2% sales growth. Segment volume growth was driven primarily by gains in personal care behind innovation in Burt's Bees lip color products.
"I'm very pleased about our solid start to the fiscal year, as investments behind our 2020 Strategy, including product innovation, resulted in continued strong topline growth," said Clorox chairman and CEO Benno Dorer. "Notably, we grew volume in all US and International segments. We also delivered these results on top of strong topline growth in the year-ago quarter."
Clorox’s international unit saw a 4% volume increase with flat sales. Segment volume results were driven primarily by gains in Canada, reflecting base business growth and the benefit of the RenewLife acquisition, as well as growth in the Burt's Bees business in Asia, partially offset by decreases in select Latin America countries, notably Argentina.
In the first quarter, volume grew 8%, reflecting increases in all reportable segments, including the benefit of the RenewLife digestive health business, which Clorox acquired in May 2016. Total company sales grew 4%, driven by strong volume growth, including 2 points from the RenewLife business, and the benefit of price increases in the company's international business.
The company’s cleaning operations—its laundry, home care, and professional products—reported 13% volume growth and 7% sales growth. Clorox said volume growth was driven largely by gains in home care, particularly record shipments of Clorox disinfecting wipes behind expanded club-channel distribution and increased merchandising support for the back-to-school season. Record shipments across a number of Clorox-branded products, including toilet bowl cleaners and disinfecting spray products, also contributed to segment volume results. Professional products also contributed to segment volume growth, reflecting strong gains across cleaning brands. The variance between volume and sales growth was due to unfavorable mix. Pretax earnings growth reflected higher sales and cost savings.
Clorox’s lifestyle segment, which includes its natural personal care operations as well as food and water filtration, recorded 1% volume growth and 2% sales growth. Segment volume growth was driven primarily by gains in personal care behind innovation in Burt's Bees lip color products.
"I'm very pleased about our solid start to the fiscal year, as investments behind our 2020 Strategy, including product innovation, resulted in continued strong topline growth," said Clorox chairman and CEO Benno Dorer. "Notably, we grew volume in all US and International segments. We also delivered these results on top of strong topline growth in the year-ago quarter."
Clorox’s international unit saw a 4% volume increase with flat sales. Segment volume results were driven primarily by gains in Canada, reflecting base business growth and the benefit of the RenewLife acquisition, as well as growth in the Burt's Bees business in Asia, partially offset by decreases in select Latin America countries, notably Argentina.