Net Sales Rise 12% for The Clorox Company in Q4 2023

Net sales for The Clorox Company in Q4 2023 increased 12% to $2.0 billion compared to flat sales in the year-ago quarter. The increase was driven largely by favorable price mix, partially offset by lower volume and unfavorable foreign exchange rates. Organic sales were up 14%.

 

Clorox’s Health and Wellness segment, which comprises its cleaning; professional products business, recorded a net sales in Q4 increase of 14%, with higher sales across businesses. Cleaning sales increased, driven mainly by strong consumption, supported by ongoing improvements to supply chain performance. Results also benefited from lapping significant retailer inventory reductions, mainly in Clorox Disinfecting Wipes, following a covid-19 surge in the year-ago quarter, the company said. Professional products sales grew behind strong consumption, as demand continued to recover and distributors' inventory levels continued to normalize.


In Q4, Clorox’s Lifestyle segment, which includes its natural personal care products sold by Burt's Bees as well as food a water filtration products, recorded a net sales gain of 14%, increased 14%, driven by 15 points of favorable price mix, which more than offset 1 point of lower volume. Clorox said that natural personal care sales were essentially flat as consumption growth in lip care was offset by lower shipments in face care due to strong competition in the category.

Net sales for fiscal year 2023 increased 4% (6% organic sales increase) behind growth in three of four reportable segments—compared to fiscal year 2022. It was driven by 16 points of favorable price mix, partially offset by 10 points of lower volume and 2 points of unfavorable foreign exchange rates.

“We closed out fiscal year 2023 with strong results driven by broad-based consumption across our portfolio,” said CEO Linda Rendle. “Over the course of the year, we've been relentlessly focused on driving top-line growth while rebuilding margins in the midst of a challenging operating environment as we continue to advance our long-term strategy to invest in our advantaged portfolio of superior brands, advance our digital transformation, and streamline our operating model. Looking ahead to fiscal year 2024, we are committed to building on our progress and believe these actions, combined with the strength of our portfolio and the relevance of our IGNITE strategy, will enable us to drive long-term profitable growth.” 

Net sales for fiscal year 2024 are expected to be flat to up 2% compared to the prior year. Organic sales are expected to be up 2% to up 4%.