CleanTec Industry News

United States. The Clorox Company released results for the fourth quarter and fiscal year 2023, which ended June 30, 2023. Net sales increased 12% to $2 billion compared to flat sales in the year-ago quarter. The increase in net sales was largely driven by a favorable price mix, partially offset by lower volume and unfavorable exchange rates. Organic sales1 increased 14%.

Gross margin increased 560 basis points to 42.7% from 37.1% in the year-ago quarter due to benefits from pricing and cost-saving initiatives, partially offset by unfavorable commodity costs and higher manufacturing and logistics expenses.

Diluted net earnings per share (diluted EPS) rose 75% to $1.42 from 81 cents in the year-ago quarter. This includes continued investments in the company's long-term strategic digital capabilities and productivity improvements (16 cents), as well as the implementation of the company's optimized operating model (9 cents).

Adjusted EPS 1 rose 80% to $1.67 from 93 cents in the year-ago quarter, due in part to pricing benefits and cost savings. These factors were partially offset by higher SG&A expenses.

"We closed fiscal 2023 with strong results driven by widespread consumption across our portfolio," said CEO Linda Rendle. "Throughout the year, we have been tirelessly focused on driving revenue growth while also rebuilding margins amid a challenging operating environment as we continue to advance our long-term strategy to invest in our advantageous portfolio of top brands, advance our digital transformation and optimize our operating model. Looking ahead to fiscal 2024, we are committed to building on our progress and believe that 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."

In the Health and Wellness segment (Cleaning; Professional Products), the results were as follows:
Net sales rose 14%, with higher sales across all businesses. The increase was driven by 16 points of favorable price mix, which more than offset 2 points of lower volume.
Cleaning sales rose, driven mainly by strong consumption, supported by continued improvements in supply chain performance. The results also benefited from significant reductions in retailers' inventory, primarily on Clorox disinfectant wipes, following a COVID-19 surge in the year-ago quarter.
Sales of professional products grew on the back of strong consumption, as demand continued to recover and distributors' inventory levels continued to normalize.