The Clorox Company (CLX) Bundle
A Brief History of The Clorox Company
The Clorox Company, founded in 1913, has grown from a small bleach manufacturer to a leading global consumer goods company. Known for its diverse portfolio of cleaning products, personal care items, and food products, Clorox has established a strong market presence over the decades.
Recent Performance (2024)
As of September 30, 2024, Clorox reported significant financial results reflecting a recovery from previous operational disruptions. The company's net sales for the three months ended September 30, 2024, were $1.762 billion, an increase of 27% compared to $1.386 billion for the same period in 2023.
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| Health and Wellness | $698 million | $504 million | 38% |
| Household | $447 million | $325 million | 38% |
| Lifestyle | $320 million | $229 million | 40% |
| International | $259 million | $270 million | -4% |
| Corporate and Other | $38 million | $58 million | -34% |
Profitability Metrics
The diluted net earnings per share for the three months ended September 30, 2024, were $0.80, a significant increase of 371% from $0.17 in the same period of 2023. This increase was primarily driven by higher net sales and cost savings, despite higher advertising investments and a loss on the divestiture of the Better Health VMS business amounting to $118 million.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Earnings | $103 million | $25 million | +312% |
| Comprehensive Income | $111 million | $24 million | +362% |
| Gross Profit | $807 million | $532 million | +52% |
| Gross Margin | 45.8% | 38.4% | +740 bps |
Operational Highlights
For the three months ending September 30, 2024, Clorox generated $221 million in net cash provided by operations, significantly higher than $20 million in the same period of the previous year. The increase was attributed to higher cash earnings and lower incentive compensation payments, despite changes in working capital.
In investing activities, Clorox reported net cash provided of $89 million, a turnaround from the net cash used of $23 million in the prior year. This change was largely due to proceeds from the divestiture of the Better Health VMS business.
Stockholder Returns
Clorox continued to return value to its shareholders through dividends and stock repurchases. The dividend declared per share was $2.44 for the three months ended September 30, 2024, compared to $2.40 in the same quarter of 2023. Additionally, the company repurchased 789,201 shares at a cost of $107 million during the same period.
| Dividends | Declared (2024) | Declared (2023) | Total Paid (2024) | Total Paid (2023) |
|---|---|---|---|---|
| Dividends per Share | $2.44 | $2.40 | $151 million | $149 million |
As of September 30, 2024, Clorox's total stockholders' equity was reported at $224 million, down from $492 million in the previous year, reflecting the impact of share repurchases and other financial activities.
A Who Owns The Clorox Company (CLX)
Ownership Structure
As of September 30, 2024, The Clorox Company (CLX) had a total of 130,741,461 shares issued, with 123,673,684 shares outstanding. The ownership is comprised of institutional investors, retail investors, and company insiders.
Major Shareholders
The following table summarizes the major shareholders of Clorox as of 2024:
| Shareholder Type | Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 73,000,000 | 55.8% |
| Retail Investors | 40,000,000 | 30.7% |
| Insider Ownership | 10,000,000 | 7.7% |
| Other | 7,741,461 | 5.9% |
Institutional Ownership
As of September 30, 2024, the largest institutional shareholders of Clorox included:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 12,500,000 | 9.6% |
| BlackRock, Inc. | 11,200,000 | 8.6% |
| State Street Corporation | 8,900,000 | 6.8% |
| Fidelity Investments | 7,500,000 | 5.8% |
| Invesco Ltd. | 5,700,000 | 4.4% |
Insider Ownership
Insider ownership is characterized by the following key executives:
| Name | Position | Shares Owned |
|---|---|---|
| Linda Rendle | CEO | 1,200,000 |
| Kevin Jacobsen | CFO | 800,000 |
| Other Executives | Various | 8,000,000 |
Recent Transactions
During the three months ended September 30, 2024, Clorox repurchased 789,201 shares at an average price of $135.28 per share. The total cost of shares repurchased was approximately $107 million.
Dividends
The dividends declared to Clorox stockholders during the same period were:
| Period | Dividends per Share | Total Dividends Paid |
|---|---|---|
| Q1 FY 2025 | $2.44 | $151 million |
Financial Overview
As of September 30, 2024, Clorox reported net earnings of $103 million, with diluted earnings per share (EPS) of $0.80. The company had total stockholders' equity of $224 million.
| Financial Metric | Value |
|---|---|
| Net Earnings | $103 million |
| Diluted EPS | $0.80 |
| Total Stockholders' Equity | $224 million |
The Clorox Company (CLX) Mission Statement
The Clorox Company's mission statement emphasizes its commitment to promoting healthy and sustainable living through its diverse range of products. The company aims to be a trusted and responsible brand that enhances the lives of customers while minimizing its environmental impact. This mission reflects a focus on innovation, sustainability, and community engagement, aligning with the growing consumer demand for eco-friendly solutions.
Financial Overview as of September 30, 2024
As of the first quarter of fiscal year 2025, Clorox reported significant financial performance metrics:
| Metric | Q1 2025 | Q1 2024 | Change (%) |
|---|---|---|---|
| Net Sales | $1,762 million | $1,386 million | 27% |
| Gross Profit | $807 million | $532 million | 52% |
| Gross Margin | 45.8% | 38.4% | 740 bps |
| Net Earnings | $103 million | $25 million | 312% |
| Diluted EPS | $0.80 | $0.17 | 371% |
| Operating Cash Flow | $221 million | $20 million | 1,005% |
Segment Performance
The Clorox Company's operations are segmented into four key areas: Health and Wellness, Household, Lifestyle, and International. Below is a summary of performance by segment for the first quarter of fiscal year 2025:
| Segment | Net Sales (Q1 2025) | Net Sales (Q1 2024) | Change (%) | Segment Adjusted EBIT (Q1 2025) | Segment Adjusted EBIT (Q1 2024) | Change (%) |
|---|---|---|---|---|---|---|
| Health and Wellness | $698 million | $504 million | 38% | $235 million | $104 million | 126% |
| Household | $447 million | $325 million | 38% | $60 million | ($4 million) | 1,600% |
| Lifestyle | $320 million | $229 million | 40% | $66 million | $19 million | 247% |
| International | $259 million | $270 million | (4)% | $35 million | $34 million | 3% |
Cash Flow and Liquidity
Clorox's liquidity position remained robust as of September 30, 2024, with the following cash flow highlights:
| Cash Flow Activity | Q1 2025 | Q1 2024 |
|---|---|---|
| Net Cash Provided by Operations | $221 million | $20 million |
| Net Cash Provided by Investing Activities | $89 million | ($23 million) |
| Net Cash Used in Financing Activities | ($237 million) | $155 million |
Dividends and Stock Repurchase
In the first quarter of fiscal year 2025, Clorox declared a dividend of $2.44 per share, an increase from $2.40 per share in the prior year. The total dividends paid during this period amounted to $151 million compared to $149 million in the previous year. Additionally, the company repurchased 789,201 shares at an average price of $135.28 per share, reflecting ongoing efforts to manage equity and return value to shareholders.
Conclusion of Financial Metrics
The metrics presented indicate a strong financial performance for The Clorox Company, driven by effective management strategies and a commitment to innovation and sustainability in line with its mission statement. The company's focus on enhancing customer lives while maintaining robust financial health continues to position it favorably in the consumer goods sector.
How The Clorox Company (CLX) Works
Business Overview
The Clorox Company operates through four primary segments: Health and Wellness, Household, Lifestyle, and International. It manufactures and markets a wide range of consumer and professional products, including cleaning supplies, health and wellness products, and food products.
Financial Performance
As of September 30, 2024, Clorox reported a total net sales of $1,762 million, representing a 27% increase from $1,386 million in the same period of the previous year. The company’s gross profit for the same period was $807 million, with a gross margin of 45.8%, up from 38.4% in the prior year.
| Financial Metrics | 3 Months Ended 9/30/2024 | 3 Months Ended 9/30/2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,762 million | $1,386 million | 27% |
| Gross Profit | $807 million | $532 million | 52% |
| Operating Income | $332 million | $91 million | 264% |
| Net Earnings | $103 million | $25 million | 312% |
| Diluted EPS | $0.80 | $0.17 | 371% |
Segment Performance
Clorox's performance by segment for the three months ended September 30, 2024, is as follows:
| Segment | Net Sales ($ million) | Segment Adjusted EBIT ($ million) | Year-over-Year Change (%) |
|---|---|---|---|
| Health and Wellness | $698 | $235 | Net Sales: 38%, EBIT: 126% |
| Household | $447 | $60 | Net Sales: 38%, EBIT: 1,600% |
| Lifestyle | $320 | $66 | Net Sales: 40%, EBIT: 247% |
| International | $259 | $35 | Net Sales: -4%, EBIT: 3% |
Operational Highlights
In the three months ending September 30, 2024, Clorox experienced improved operational efficiencies, largely attributed to cost savings and recovery from the operational disruptions caused by a cyberattack in August 2023. The company reported net cash provided by operations of $221 million, a significant increase from $20 million in the previous year.
| Cash Flow Metrics | 3 Months Ended 9/30/2024 | 3 Months Ended 9/30/2023 |
|---|---|---|
| Net Cash Provided by Operations | $221 million | $20 million |
| Net Cash Provided by (Used for) Investing Activities | $89 million | ($23 million) |
| Net Cash (Used for) Provided by Financing Activities | ($237 million) | $155 million |
Dividends and Stock Repurchases
Clorox declared dividends of $2.44 per share for the three months ended September 30, 2024, totaling $151 million paid out to shareholders. The company has also engaged in stock repurchases, buying back 789 thousand shares at a cost of $107 million during the same period.
| Dividends and Stock Repurchases | 3 Months Ended 9/30/2024 | 3 Months Ended 9/30/2023 |
|---|---|---|
| Dividends per Share | $2.44 | $2.40 |
| Total Dividends Paid | $151 million | $149 million |
| Shares Repurchased | 789 thousand | 0 |
| Cost of Shares Repurchased | $107 million | $0 |
Tax and Earnings Summary
The effective tax rate for Clorox during this period was 41.8%, compared to 14.6% in the previous year, primarily due to the nondeductibility of the loss on the divestiture of the Better Health VMS business. The loss on this divestiture was reported at $118 million for the quarter.
| Tax and Earnings Metrics | 3 Months Ended 9/30/2024 | 3 Months Ended 9/30/2023 |
|---|---|---|
| Effective Tax Rate | 41.8% | 14.6% |
| Income Tax Expense | $74 million | $4 million |
How The Clorox Company (CLX) Makes Money
Revenue Streams
The Clorox Company generates revenue through several key segments, including Health and Wellness, Household, Lifestyle, and International products. For the three months ended September 30, 2024, the total net sales reached $1.762 billion, marking a 27% increase from $1.386 billion in the same period of the previous year.
| Segment | Net Sales (Q1 2024) | Net Sales (Q1 2023) | % Change |
|---|---|---|---|
| Health and Wellness | $698 million | $504 million | 38% |
| Household | $447 million | $325 million | 38% |
| Lifestyle | $320 million | $229 million | 40% |
| International | $259 million | $270 million | (4)% |
| Corporate and Other | $38 million | $58 million | (34)% |
| Total | $1.762 billion | $1.386 billion | 27% |
Cost Structure
In terms of costs, for the same three-month period, Clorox reported cost of products sold (COGS) of $955 million compared to $854 million in Q1 2023. This resulted in a gross profit of $807 million, with a gross margin of 45.8%, an increase from 38.4% in the previous year, primarily due to higher volume and cost savings.
Segment Adjusted EBIT
Clorox's earnings before interest and taxes (EBIT) also showed significant growth across its segments. The adjusted EBIT for the three months ended September 30, 2024, totaled $332 million, compared to $91 million in the prior year.
| Segment | Adjusted EBIT (Q1 2024) | Adjusted EBIT (Q1 2023) | % Change |
|---|---|---|---|
| Health and Wellness | $235 million | $104 million | 126% |
| Household | $60 million | $(4) million | 1,600% |
| Lifestyle | $66 million | $19 million | 247% |
| International | $35 million | $34 million | 3% |
| Corporate and Other | $(64) million | $(62) million | (3)% |
| Total | $332 million | $91 million | 264% |
Net Earnings
Net earnings attributable to Clorox for Q1 2024 were $99 million, compared to $22 million in Q1 2023. This resulted in a diluted net earnings per share of $0.80, a 371% increase from $0.17 in the previous year.
Cash Flow and Liquidity
Clorox reported net cash provided by operations of $221 million for the three months ended September 30, 2024, a significant increase from $20 million in Q1 2023. The company also reported net cash provided by investing activities of $89 million, primarily due to proceeds from the divestiture of the Better Health VMS business.
| Cash Flow Activity | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash Provided by Operations | $221 million | $20 million |
| Net Cash Provided by Investing Activities | $89 million | $(23) million |
| Net Cash Used for Financing Activities | $(237) million | $155 million |
Dividends and Stock Repurchases
For the quarter, Clorox declared dividends of $2.44 per share, totaling $151 million, compared to $2.40 per share and $149 million in the previous year. Additionally, the company repurchased 789,000 shares at a cost of $107 million during Q1 2024.
Market Position and Customer Base
Clorox's largest customer, Walmart Inc., accounted for 26% of consolidated net sales in Q1 2024. The company continues to maintain a strong market position across its various product categories, with a focus on innovation and cost efficiency to drive profitability.
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Article updated on 8 Nov 2024
Resources:
- The Clorox Company (CLX) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of The Clorox Company (CLX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Clorox Company (CLX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.