Charles Sternberg, Assistant Editor04.30.21
In its fiscal third quarter ending March 31, 2021, The Clorox Company reported flat sales with lower shipments offset by favorable price mix and 1 point of benefit from the July 2020 acquisition of a majority share in the company's joint venture in Saudi Arabia. Organic sales were down 1%.
Sales in the Health and Wellness segment—which includes cleaning, professional products, vitamins, minerals and supplements—decreased 8%, mainly due to lower shipments of cleaning and disinfecting products in both the retail and professional channels in comparison to unprecedented growth in the year-ago period as well as supply constraints for some key products.
Household segment sales were up 6%, while Lifestyle segment sales remained flat.
"As expected, we delivered flat sales in the third quarter compared to 15% growth in the year-ago quarter. What's important is that we're on track to deliver our best full-year top-line growth in more than 20 years," said CEO Linda Rendle. "Looking ahead, our portfolio continues to play a meaningful role in addressing consumer megatrends that have accelerated in the last 12 months, positioning us well to fulfill our ambition to accelerate long-term, profitable growth."
Clorox's fiscal year sales are still expected to grow between 10% and 13%, reflecting strong front-half sales results as well as the expectation of moderating demand over the balance of the fiscal year.
Fiscal year sales continue to assume about 1 point of contribution from the Saudi joint venture acquisition, offset by 1 point from unfavorable foreign exchange rates. Fiscal year organic sales continue to assume a 10% to 13% growth range.
Sales in the Health and Wellness segment—which includes cleaning, professional products, vitamins, minerals and supplements—decreased 8%, mainly due to lower shipments of cleaning and disinfecting products in both the retail and professional channels in comparison to unprecedented growth in the year-ago period as well as supply constraints for some key products.
Household segment sales were up 6%, while Lifestyle segment sales remained flat.
"As expected, we delivered flat sales in the third quarter compared to 15% growth in the year-ago quarter. What's important is that we're on track to deliver our best full-year top-line growth in more than 20 years," said CEO Linda Rendle. "Looking ahead, our portfolio continues to play a meaningful role in addressing consumer megatrends that have accelerated in the last 12 months, positioning us well to fulfill our ambition to accelerate long-term, profitable growth."
Clorox's fiscal year sales are still expected to grow between 10% and 13%, reflecting strong front-half sales results as well as the expectation of moderating demand over the balance of the fiscal year.
Fiscal year sales continue to assume about 1 point of contribution from the Saudi joint venture acquisition, offset by 1 point from unfavorable foreign exchange rates. Fiscal year organic sales continue to assume a 10% to 13% growth range.