Clorox Makes a Comeback in Net Sales for Q1 2025

Fiscal year 2025 is off to a sweet start for The Clorox Company.

The Happi Top 50 company saw a 27% surge in net sales for Q1 2025 reaching $1.76 billion, which ended Sept. 30, 2024.

This compared to a 20% net sales decrease in the year-ago quarter.

Officials attribute the increase to higher volume reflecting the lapping of a cyberattack dating back to August 2023.

“We achieved better-than-expected results this quarter and fully restored overall market share, enabling us to maintain our sales outlook and raise our gross margin and EPS outlook for the year,” said Chair and CEO Linda Rendle. “As our consumers remain under pressure, we’re focused on delivering superior value, strong innovation and continued investment in our brands to win with consumers and grow share. Anchored by the strength of our portfolio and the advancement of our IGNITE strategy, we are confident we are taking the right steps to deliver consistent and profitable growth for the long-term.”

Health & Wellness

For health and wellness, inclusive of cleaning and professional products, net sales increased 38%, driven by 38 points of higher volume and two points of favorable mix, offset by two points of higher trade promotion spending. Segment adjusted EBIT increased 126%, primarily behind higher net sales and cost savings, partially offset by increased advertising investments.

Lifestyle

For the lifestyle segment, inclusive of natural personal care, net sales increased 40%, with 48 points of higher volume partially offset by eight points driven by unfavorable mix and higher trade promotion spending. Segment adjusted EBIT increased 247%, due to higher net sales, partially offset by higher advertising investments.

International

For the international segment, which includes sales outside the US, net sales decreased 4%, mainly driven by the impact of the Argentina divestiture and two points of unfavorable foreign exchange rates. Excluding Argentina and effects of foreign exchange rate changes, organic sales1 grew 11%, driven by 11 points of organic volume growth. Segment adjusted EBIT increased 3%, due to higher volume growth excluding Argentina, partially offset by higher advertising investments.
Divestiture of Better Health Vitamins, Minerals and Supplements Business

On Sept. 10, 2024, the company completed the divestiture of its Better Health VMS business in its entirety. The divested business includes the Natural Vitality, NeoCell, Rainbow Light and RenewLife brands, relevant trademarks and licenses and associated manufacturing and distribution facilities in Sunrise, FL. The transaction is in support of the company’s IGNITE strategy and reflects the commitment to continue evolving its portfolio to reduce volatility and accelerate sales growth, as well as structurally improve its margin, in service of driving more consistent and profitable growth over time. As a result of this transaction, the company recorded a one-time after-tax charge of $118 million during the first quarter of fiscal year 2025.

Fiscal Year 2025 Outlook

For its fiscal year 2025 outlook, Clorox expects net sales to be flat to down 2%. Organic sales are expected to be up 3- to 5%, excluding about two points of negative impact from the divestiture of the company’s business in Argentina and about three points of negative impact from the divestiture of the Better Health VMS business.