Clorox Linda Rendle, CEO, told CNBC Wednesday that the company’s products are “household essentials” that can withstand rising inflation and difficult economic conditions.
The company’s brands include the Clorox product of the same name, as well as Brita water purifiers, Glad bags and Burt’s Bees.
As an example of Clorox’s pricing power, Lendl referred to another price increase round set in July to offset higher costs and “recover margins over time.”
CEO said Jim Cramer upon “Seriously” The Clorox brand provides great value for what people need to use every day, even in a recession. During the 2008 financial crisis, “our category is very resilient and we have grown most of our brand,” she explained.
Clorox reported a clearly mixed quarter after Monday’s Closing Bell. Shares fell on Tuesday, but rose 3%. An additional 1.4% was added on Wednesday.
- Late Monday, a major consumer packaged product reported third-quarter adjusted earnings per share of $ 1.31. Above the estimate, but down 19% From the previous year’s period.
- Net sales increased 2% to $ 1.81 billion, slightly higher than expected. Gross profit was crushed.
- The company has reduced its full-year sales forecast by 20 cents and expects annual net sales to decline by 1% to 4%.
“In the first half of the fiscal year, we achieved 27% sales growth in the year-ago quarter, but this quarter we were able to achieve organic growth in three of the four as we wrapped up in a more normalized environment. It’s done. Segment, most of our business. ” “In addition, we were able to increase our market share.”
Lendl said the cleaning habits that arose from Covid’s pandemic were tenacious, even though many aspects of life returned to a more normalized routine. She said the company was so inclined to launch a packaging solution that would allow people to “manage the environment” and carry their products on the go, and Clorox was a “much larger business” than it was before the pandemic. “.