[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Clorox's unaudited condensed consolidated financial statements, including earnings, balance sheets, cash flows, and notes on divestitures and cyberattack impact [Condensed Consolidated Statements of Earnings and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Income) Consolidated Earnings Summary (Unaudited) | Metric | Three Months Ended 3/31/2025 | Three Months Ended 3/31/2024 | Nine Months Ended 3/31/2025 | Nine Months Ended 3/31/2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,668 M | $1,814 M | $5,116 M | $5,190 M | | **Gross Profit** | $744 M | $766 M | $2,289 M | $2,164 M | | **Net Earnings (Losses) Attributable to Clorox** | $186 M | $(51) M | $478 M | $64 M | | **Diluted Net Earnings (Losses) Per Share** | $1.50 | $(0.41) | $3.84 | $0.52 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Summary (Unaudited) | Metric | As of 3/31/2025 | As of 6/30/2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,590 M | $1,622 M | | **Total Assets** | $5,512 M | $5,751 M | | **Total Current Liabilities** | $2,155 M | $1,574 M | | **Total Liabilities** | $5,322 M | $5,259 M | | **Total Stockholders' Equity** | $190 M | $492 M | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Summary (Unaudited) | Metric | Nine Months Ended 3/31/2025 | Nine Months Ended 3/31/2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operations** | $687 M | $355 M | | **Net Cash Used for Investing Activities** | $(18) M | $(94) M | | **Net Cash Used for Financing Activities** | $(645) M | $(382) M | | **Net Increase (Decrease) in Cash** | $22 M | $(147) M | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details accounting policies, significant events like the Better Health VMS divestiture, cyberattack recoveries, the Glad venture agreement, and segment performance - The company completed the divestiture of its Better Health VMS business on September 10, 2024, recording an after-tax loss of **$118 million** for the nine months ended March 31, 2025[25](index=25&type=chunk) - The agreement with P&G for the Glad business will terminate in January 2026, requiring Clorox to purchase P&G's 20% interest for cash at fair value, estimated at **$476 million** as of March 31, 2025[22](index=22&type=chunk)[23](index=23&type=chunk) - In relation to the August 2023 cyberattack, the company recorded insurance recoveries of **$35 million** and **$70 million** in the three and nine months ended March 31, 2025, respectively, with no significant future costs expected[29](index=29&type=chunk) Segment Net Sales and Adjusted EBIT (Nine Months Ended March 31) | Segment | Net Sales 2025 | Net Sales 2024 | Segment Adjusted EBIT 2025 | Segment Adjusted EBIT 2024 | | :--- | :--- | :--- | :--- | :--- | | **Health and Wellness** | $1,956 M | $1,833 M | $597 M | $517 M | | **Household** | $1,362 M | $1,353 M | $169 M | $162 M | | **Lifestyle** | $964 M | $947 M | $196 M | $192 M | | **International** | $796 M | $891 M | $87 M | $104 M | | **Corporate and Other** | $38 M | $166 M | $(193) M | $(238) M | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 financial performance, noting an 8% net sales decrease, improved gross margin, significant diluted EPS recovery, and strong liquidity [Consolidated Results of Operations](index=26&type=section&id=CONSOLIDATED%20RESULTS) Q3 FY2025 net sales decreased 8% due to divestitures, while gross margin expanded to 44.6%, leading to a diluted EPS of $1.50 Net Sales and Organic Sales Growth (Q3 FY2025 vs Q3 FY2024) | Metric | Total Company | Health and Wellness | Household | Lifestyle | International | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales Growth (GAAP)** | (8)% | 3% | (11)% | (3)% | (15)% | | **Organic Sales Growth (Non-GAAP)** | (2)% | 3% | (11)% | (3)% | 2% | - Gross margin for Q3 FY2025 increased by **240 basis points to 44.6%**, primarily driven by cost savings and benefits from divestitures[96](index=96&type=chunk) - Q3 FY2025 diluted EPS was **$1.50**, a **466% increase** from a loss of ($0.41) in the prior-year quarter, primarily due to the absence of the Argentina divestiture loss and higher gross margin[106](index=106&type=chunk) [Segment Results Analysis](index=29&type=section&id=SEGMENT%20RESULTS) Analyzes Q3 segment performance, noting growth in Health and Wellness, declines in Household and International due to divestitures and lower consumption - **Health and Wellness:** Q3 volume, net sales, and segment adjusted EBIT increased by **7%**, **3%**, and **10%** respectively, driven by strong consumption in Cleaning[110](index=110&type=chunk) - **Household:** Q3 volume, net sales, and segment adjusted EBIT decreased by **9%**, **11%**, and **18%** respectively, primarily due to lower consumption in Grilling[112](index=112&type=chunk) - **International:** Q3 net sales decreased by **15%**, primarily due to the divestiture of the Argentina business[116](index=116&type=chunk) [Financial Position and Liquidity](index=31&type=section&id=FINANCIAL%20POSITION%20AND%20LIQUIDITY) The company maintained strong financial position and liquidity, with net cash from operations significantly increasing and a new $1.2 billion credit agreement Cash Flow Summary (Nine Months Ended) | Activity | 3/31/2025 | 3/31/2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operations** | $687 M | $355 M | | **Net Cash Used for Investing** | $(18) M | $(94) M | | **Net Cash Used for Financing** | $(645) M | $(382) M | - On March 25, 2025, the company entered into a new **$1.2 billion** revolving credit agreement that matures in March 2030[132](index=132&type=chunk) - The company declared dividends of **$1.22 per share** in Q3 FY2025, totaling **$150 million** paid to stockholders[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no material changes to its market risk exposures since the end of the previous fiscal year on June 30, 2024 - There have been no material changes to the Company's market risk since June 30, 2024[157](index=157&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of March 31, 2025, with a new ERP system implementation potentially affecting future internal controls - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[158](index=158&type=chunk) - The company is implementing a new enterprise resource planning (ERP) system during fiscal years 2025 and 2026, which could result in changes to its internal control over financial reporting[160](index=160&type=chunk) [PART II - OTHER INFORMATION](index=41&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Risk Factors](index=41&type=section&id=Item%201.A.%20Risk%20Factors) This section directs readers to the risk factors detailed in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - The report refers to the risk factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and the 'Cautionary Statement' in the current report[163](index=163&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during Q3 FY2025, with approximately $993 million remaining available for repurchase under its 2018 program Share Repurchases (Q3 FY2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | — | $ — | | February 2025 | — | $ — | | March 2025 | — | $ — | | **Total** | **—** | **$ —** | - As of March 31, 2025, **$993 million** remained available for share repurchases under the publicly announced 2018 Open-Market Program[167](index=167&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) The company reports that none of its directors or officers adopted or terminated a Rule 10b5-1 trading plan or any non-Rule 10b5-1 trading arrangement during Q3 FY2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the three months ended March 31, 2025[168](index=168&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed with the Form 10-Q, including the new Credit Agreement and CEO/CFO certifications - Key exhibits filed with this report include the Credit Agreement dated March 25, 2025, and certifications by the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[171](index=171&type=chunk)

Delivers lower-than-expected sales amid a challenging and volatile consumer and geopolitical environment while maintaining overall market shares and delivering its 10th consecutive quarter of gross margin expansion OAKLAND, Calif., May 5, 2025 — The Clorox Company (NYSE: CLX) today reported results for the third quarter of fiscal year 2025, which ended Mar. 31, 2025. PRESS RELEASE Clorox Reports Q3 Fiscal Year 2025 Results, Updates Outlook Key Segment Results Third-Quarter Fiscal Year 2025 Summary Following ...

Core Insights - The Clorox Company reported lower-than-expected sales for the third quarter of fiscal year 2025, with net sales decreasing by 8% to $1.67 billion, primarily due to divestitures and a challenging consumer environment [1][5][3] - Despite the sales decline, the company maintained overall market shares and achieved its tenth consecutive quarter of gross margin expansion, increasing gross margin by 240 basis points to 44.6% [1][5][6] - The company expects continued organic sales growth and strong earnings growth for the fiscal year, despite macroeconomic uncertainties impacting shopping behaviors [3][8] Financial Performance - Net sales decreased 8% to $1.67 billion, with organic sales down 2% due to unfavorable price mix and flat organic volume [5][6] - Diluted EPS increased 466% to $1.50 from a loss of $0.41 in the prior year, influenced by the lapping of losses from divestitures and cyberattack insurance recoveries [5][6] - Adjusted EPS decreased 15% to $1.45 from $1.71, primarily due to lower net sales, partially offset by higher gross margin [5][6] Strategic and Operational Highlights - The company maintained market shares despite complex geopolitical and macroeconomic conditions and continued to invest in product innovations [6][3] - Clorox achieved zero-waste-to-landfill status across all global manufacturing plants where infrastructure allows [6] - The company introduced several new products, including Burt's Bees Boosted Tinted Balm and Clorox Scentiva ToiletWand Refills, to meet consumer needs [6] Fiscal Year 2025 Outlook - The company updated its fiscal year 2025 outlook, expecting net sales to be down 1% to flat, with organic sales growth projected at 4% to 5% [9][13] - Diluted EPS is expected to range between $5.73 and $6.13, reflecting a year-over-year increase of 155% to 172% [10][13] - The outlook includes anticipated benefits from incremental shipments related to the company's ERP transition, expected to contribute 2% to 3% to organic sales growth [9][13]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Group 1 - The investment strategy is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1].

Core Insights - Clorox Company (CLX) is expected to report a decline in both revenue and earnings for the third quarter of fiscal 2025, with revenues estimated at $1.71 billion, a decrease of 5.5% year-over-year, and earnings per share projected at $1.57, down 8.2% from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate indicates a trailing four-quarter earnings surprise of 23.8% on average, with an 11.5% surprise in the most recent quarter [2]. - Adjusted operating profit is predicted to increase by 8.3% year-over-year to $281.7 million, with an expected operating margin expansion of 180 basis points to 16.1% [6]. Strategic Initiatives - Clorox is leveraging its IGNITE strategy to enhance innovation and profitability across its business segments, particularly in the International segment, which is expected to see organic sales growth of 9% year-over-year [3][4]. - The company is streamlining its operating model to improve efficiency and productivity, which has positively impacted cash flow and adaptability to changing consumer behaviors [5]. Market Conditions - Clorox faces a challenging macroeconomic environment, with consumers experiencing financial pressures and increased advertising expenses impacting profitability [7]. - The company is also contending with stiff competition in the consumer goods sector, which is affecting its market share and operational performance [7]. Valuation and Stock Performance - CLX stock is currently trading at a forward 12-month price-to-earnings ratio of 19.45x, below the industry average of 21.08x, and has underperformed with a 14.8% decline year-to-date compared to the industry's 1.2% decline [9][10].

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Core Insights - Analysts expect Clorox (CLX) to report quarterly earnings of $1.57 per share, reflecting an 8.2% year-over-year decline [1] - Revenue is projected at $1.71 billion, down 5.5% from the same quarter last year [1] - The consensus EPS estimate has been revised 2.2% lower in the last 30 days, indicating a reevaluation of initial estimates by analysts [1][2] Revenue Estimates - 'Net Revenue - Health and Wellness' is forecasted to reach $597.23 million, indicating a -1.9% change from the prior-year quarter [3] - 'Net Revenue - Household' is expected to be $515.48 million, reflecting a -2% change year-over-year [4] - 'Net Revenue - International' is estimated at $258.40 million, showing a significant -16.7% change from the previous year [4] - 'Net Revenue - Lifestyle' is projected to be $314.14 million, indicating a -0.3% change from the prior-year quarter [4] Income Estimates - 'Income before income taxes - Health and Wellness' is estimated at $176.17 million, compared to $154 million in the same quarter last year [5] - 'Income before income taxes - International' is projected at $27.86 million, down from $38 million year-over-year [6] - 'Income before income taxes - Lifestyle' is expected to be $68.36 million, compared to $64 million in the same quarter last year [6] - 'Income before income taxes - Household' is estimated at $73.02 million, slightly down from $74 million in the same quarter last year [7] Stock Performance - Clorox shares have shown a return of -3.6% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite [7] - The stock holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [7]

Clorox Company Overview - Clorox is expected to report quarterly earnings of $1.57 per share, reflecting a year-over-year decline of 8.2% [3] - Revenues are anticipated to be $1.71 billion, down 5.5% from the same quarter last year [3] - The consensus EPS estimate has been revised 1.28% lower in the last 30 days, indicating a bearish sentiment among analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Clorox is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.58% [10][11] - Clorox holds a Zacks Rank of 3 (Hold), complicating predictions of an earnings beat [11] - Historically, Clorox has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +11.51% in the last reported quarter [12][13] Comparison with Industry Peers - Church & Dwight, another player in the consumer products industry, is expected to post earnings of $0.89 per share, a year-over-year decline of 7.3% [17] - Church & Dwight's revenues are projected to be $1.51 billion, showing a slight increase of 0.5% from the previous year [17] - The consensus EPS estimate for Church & Dwight has been revised 0.6% lower, but it has a positive Earnings ESP of 0.66%, suggesting a higher likelihood of beating the consensus estimate [18]

Clorox Company CAGNY 2023 Conference Call Summary Company Overview - **Company**: The Clorox Company (NYSE: CLX) - **Participants**: - Linda Rendle - CEO - Kevin Jacobsen - CFO - **Conference Date**: February 23, 2023 Key Industry Insights - Clorox is navigating a challenging macroeconomic environment while focusing on rebuilding margins and maintaining top-line growth despite inflationary pressures [2][5][50]. - The company emphasizes its commitment to innovation and consumer intimacy as key drivers for long-term growth [2][4]. Core Strategies and Performance - **IGNITE Strategy**: Launched in 2019, focuses on leveraging innovation across four integrated choices: fuel growth, innovate experiences, reimagine work, and evolve the portfolio [10][11][22]. - **Brand Strength**: Over 80% of Clorox's portfolio consists of 1 or 2 share brands in their categories, with a consumer superiority rating of 76%, the highest recorded [8][12]. - **Financial Goals**: Aiming for top-line growth of 3% to 5% and annual EBIT margin expansion of 25 to 50 basis points [56]. Financial Performance - Clorox has returned approximately $4.7 billion to shareholders over the last five years through share buybacks and dividends [51]. - The company has seen a 3-year CAGR of 17% in its e-commerce business, indicating strong growth potential in online sales [44]. - Recent quarters have shown gross margin expansion after a period of decline, with a projection for continued improvement [60]. Innovation and Product Development - Clorox is focusing on "big, sticky innovations" that provide long-term value and consumer engagement [16][25]. - Recent product launches include: - **Clorox Disinfecting Mist**: A non-aerosol disinfecting spray that emphasizes sustainability through a refill model [28]. - **Outstretch Cat Litter**: Initially struggled but has seen a turnaround with improved communication and marketing strategies, achieving nearly $50 million in sales [34]. - **Glad with Clorox**: A successful product that generated $120 million in its first year, addressing consumer needs for odor control [39]. Supply Chain and Operational Improvements - Clorox has made significant investments in its supply chain to enhance resilience and efficiency, particularly in response to pandemic-related disruptions [59]. - The company is implementing a $500 million digital transformation to improve operational capabilities and data analytics [53][20]. ESG Commitment - Clorox has integrated ESG considerations into its business strategy, aiming to maximize impact through holistic management [7][18]. Conclusion - Clorox is positioned to leverage its strong brand portfolio and innovative capabilities to drive profitable growth while navigating current economic challenges. The focus remains on balancing short-term results with long-term strategic investments [18][61].

Clorox Company Conference Call Summary Company Overview - **Company**: The Clorox Company (NYSE: CLX) - **Event**: 2022 Barclays Global Consumer Staples Conference - **Date**: September 07, 2022 - **Participants**: - Linda Rendle - CEO - Kevin Jacobsen - CFO Key Points Industry Context and Operating Model - The company is operating in a challenging environment and is taking actions to grow margins and maintain top-line momentum [3] - A new streamlined operating model was announced, aiming for cost savings of $75 million to $100 million, with benefits expected to begin in the latter half of fiscal year 2023 and continue into fiscal year 2024 [3][12] Digital Transformation - A $500 million investment in digital transformation, including a new ERP system, is underway to modernize capabilities and support long-term growth [5][6] - The ERP system is over 20 years old and is being replaced to improve internal visibility and efficiency [6][8] Margin Recovery and Cost Management - The company aims to rebuild gross margins to pre-pandemic levels of approximately 44%, having lost about 800 basis points during the pandemic [17] - Expected margin improvement of about 200 basis points for the current year, despite facing 550 basis points of cost inflation [17] - The company is focused on pricing actions, cost savings, and optimizing the supply chain to support margin recovery [17][39] Retailer Relationships and Pricing Strategy - Discussions with retailers about pricing are becoming more nuanced due to consumer pressure and inflation [19][20] - The company expects to implement additional pricing plans in the back half of the year to cover inflation and improve margins [36][39] Inventory Management - Inventory levels are about 50% higher than pre-pandemic levels, but the company has started to reduce inventory, aiming for a return to more normalized levels [23][24] - The company has seen improvements in supply chain stability, allowing for better inventory management [24] Innovation and Brand Investment - Clorox has launched innovations in 28 categories in the last fiscal year, with a focus on maintaining advertising and innovation spending [6][14] - The company is committed to investing in its brands to ensure long-term growth and consumer relevance [14][27] International Growth - The company sees international markets as a growth opportunity, with plans to expand beyond Latin America into more stable markets [44] - Recent efforts have doubled the distribution in several countries, contributing positively to organic sales growth [44] Overall Performance and Future Outlook - The company has averaged 5% growth over the last three years, with strong performance in various segments despite challenges in the cleaning category [29][41] - Clorox is focused on balancing short-term tactical execution with long-term strategic goals to ensure sustainable growth [27][30] Additional Insights - The company acknowledges the need for continuous adaptation in response to market dynamics and consumer behavior changes post-pandemic [32] - Clorox is committed to maintaining a strong relationship with retailers while navigating the complexities of pricing and inventory management [19][20]