11.03.22
The Clorox Company reported results for the first quarter of fiscal year 2023, which ended Sept. 30, 2022. Net sales decreased 4% to $1.74 billion compared to a 6% net sales decrease in the year-ago quarter. The net sales decrease was driven largely by lower volume, partially offset by favorable price mix. Organic sales1 were down 2%. The three-year average growth rate for net sales was up 5%.
"We delivered better-than-expected results this quarter in a challenging operating environment, which reflects the strength of our brands and strong execution," said CEO Linda Rendle. "Looking ahead, we expect to face ongoing macro headwinds and will adapt with agility. Given these factors, we are maintaining our outlook for the year. We will continue to focus on rebuilding margin, investing in consumer-inspired innovation and driving our transformation forward to build a stronger, more resilient company."
Net sales of the Health and Wellness unit, which includes the company’s cleaning, professional products and vitamins, minerals and supplements (VMS) brands, decreased 4%, with 17 points of favorable price mix more than offset by 21 points of lower volume, according to Clorox. Cleaning sales decreased, primarily as a result of ongoing normalization of consumer demand, which was partially offset by a stronger-than-anticipated consumer response to a successful back-to-school merchandising program. Professional Products sales were flat, as favorable price mix was offset by a volume decrease due to the normalization of demand from the COVID-19 delta variant in the year-ago quarter. VMS sales decreased, primarily due to a reduction in inventory levels at select retailers as well as the business's ongoing shift away from noncore brands.
Clorox’s Lifestyle unit—food, natural personal care and water filtration— reported a net sales decline of 3%, with 7 points of favorable price mix more than offset by 10 points of lower volume. Natural personal care sales decreased due to lower shipments caused by supply.
"We delivered better-than-expected results this quarter in a challenging operating environment, which reflects the strength of our brands and strong execution," said CEO Linda Rendle. "Looking ahead, we expect to face ongoing macro headwinds and will adapt with agility. Given these factors, we are maintaining our outlook for the year. We will continue to focus on rebuilding margin, investing in consumer-inspired innovation and driving our transformation forward to build a stronger, more resilient company."
Net sales of the Health and Wellness unit, which includes the company’s cleaning, professional products and vitamins, minerals and supplements (VMS) brands, decreased 4%, with 17 points of favorable price mix more than offset by 21 points of lower volume, according to Clorox. Cleaning sales decreased, primarily as a result of ongoing normalization of consumer demand, which was partially offset by a stronger-than-anticipated consumer response to a successful back-to-school merchandising program. Professional Products sales were flat, as favorable price mix was offset by a volume decrease due to the normalization of demand from the COVID-19 delta variant in the year-ago quarter. VMS sales decreased, primarily due to a reduction in inventory levels at select retailers as well as the business's ongoing shift away from noncore brands.
Clorox’s Lifestyle unit—food, natural personal care and water filtration— reported a net sales decline of 3%, with 7 points of favorable price mix more than offset by 10 points of lower volume. Natural personal care sales decreased due to lower shipments caused by supply.