Net Sales for Clorox Decline 8% in Q2 Fiscal Year 2022 Results

Net sales for The Clorox Company declined 8% to $1.7 billion in the second quarter, which ended Dec. 31, 2021, the company reports.

 

In the year-ago quarter, net sales increased 27%, equating to an increase of 19% on a two-year stack basis. The decline in net sales reflects a 10-point decline in volume and two points of favorable price mix. 

 

Year-to-date net cash provided by operations declined 65% to $222 million, compared to $629 million in the year-ago period.

 

Net sales declined 21% in the health and wellness category for cleaning, professional products, vitamins and minerals/supplements. The decline was primarily driven by an 18 point-decline in volume from lower shipments in cleaning and professional products and 3 points of unfavorable price mix. On a two-year stack basis, net sales grew 21%.

 

Cleaning sales decreased double digits primarily due to lapping significant demand in the year-ago period related to COVID-19 impacts. Sales were also impacted by unfavorable price mix as assortment and the promotional environment continued to normalize.

 

Professional Products sales decreased double digits primarily due to lower shipments of Clorox Total 360 as the business lapped peak COVID-driven demand.

 

Vitamins, minerals and supplements sales decreased primarily due to lower shipments of noncore brands. Segment pretax earnings declined 77% primarily due to lower net sales, higher manufacturing and logistics and commodity costs, partially offset by lower advertising costs.

 

New Innovations, A Stronger, More Resilient Company  

 

Clorox launched new innovations that support consumer well-being and the company's ESG commitments. New Clorox Disinfecting Mists make it easier to disinfect hard and soft surfaces while also providing reusable sprayers and refills that help send less waste to landfill. Additionally, the new Clorox Multi-Purpose Cleaner concentrate packaging uses 80% less plastic than a typical 16-ounce bottle. Tapping into scent trends, the company introduced Glad ForceFlexPlus Cherry Blossom.

 

In speaking of the year ahead, CEO Linda Rendle acknowledged cost pressures, but noted the actions being taken to strengthen its competitive position. 

 

“In the face of a challenging cost environment, we're executing well on the factors we control,” said CEO Linda Rendle. “We're driving cost savings and pricing to mitigate inflationary headwinds, while also continuing to meet strong demand across our portfolio. And we're keeping an eye on the long-term by investing in innovation, our brands and strategic digital capabilities. Although we expect cost pressures will continue through fiscal year 2022, we're confident we have the right strategy and are taking the right actions to strengthen our competitive position, build a stronger, more resilient company, and create long-term shareholder value.”