Clorox Co 10-Q for FY2024 Q1

Clorox Co (CLX)

10-Q 2023-11-01 For: 2023-09-30

Added on April 09, 2026

About this 10-Q

Clorox Co filed this 10-Q on November 1, 2023, covering the quarter ended September 30, 2023 (FY2024 Q1).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.39B; down 20.3% from $1.74B a year earlier
Net income: $22M; down 74.1% from net income of $85M a year earlier
Diluted EPS: $0.17; down 75.0% from $0.68 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware			31-0595760
(State or other jurisdiction of			(I.R.S. Employer Identification No.)
incorporation or organization)


(Former name, former address and former fiscal year, if changed since last report)
___________________
Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock - $1.00 par value	CLX	New York Stock Exchange


						Page
PART I - FINANCIAL INFORMATION						3
I tem 1. Financial Statements						3
Condensed Consolidated Statements of Earnings and Comprehensive Income						3
Condensed Consolidated Balance Sheets						4
C ondensed Consolidated Statements of Cash Flows						5
N otes to Condensed Consolidated Financial Statements						6
I tem 2. Man agement ’s Discussion and Analysis of Financial Condition and Results of Operations						18
I tem 3. Quantitative and Qualitative Disclosures About Market Risk						30
I tem 4. Controls and Procedures						30
PART II - OTHER INFORMATION						31
I tem 1.A. Risk Factors						31
I tem 2. Unregistered Sales of Equity Securities and Use of Proceeds						33
I tem 5. Other Information						33
I tem 6. Exhibits						34


	Three months ended
	9/30/2023		9/30/2022
Net sales	$	1,386	$	1,740
Cost of products sold		854		1,114
Gross profit		532		626
Selling and administrative expenses		276		261
Advertising costs		165		161
Research and development costs		29		32

Interest expense		21		22
Other (income) expense, net		12		34
Earnings before income taxes		29		116
Income tax expense		4		29
Net earnings		25		87
Less: Net earnings attributable to noncontrolling interests		3		2
Net earnings attributable to Clorox	$	22	$	85
Net earnings per share attributable to Clorox
Basic net earnings per share	$	0.17	$	0.69
Diluted net earnings per share	$	0.17	$	0.68
Weighted average shares outstanding (in thousands)
Basic		123,973		123,339
Diluted		124,650		123,914

Comprehensive income	$	24	$	51
Less: Total comprehensive income attributable to noncontrolling interests		3		2
Total comprehensive income attributable to Clorox	$	21	$	49


	9/30/2023		6/30/2023
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	518	$	367
Receivables, net		581		688
Inventories, net		710		696
Prepaid expenses and other current assets		102		77
Total current assets		1,911		1,828
Property, plant and equipment, net of accumulated depreciation and amortization of $2,768 and $2,705, respectively		1,317		1,345
Operating lease right-of-use assets		328		346
Goodwill		1,246		1,252
Trademarks, net		541		543
Other intangible assets, net		162		169
Other assets		486		462
Total assets	$	5,991	$	5,945
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Notes and loans payable	$	347	$	50

Current operating lease liabilities		88		87
Accounts payable and accrued liabilities		1,678		1,659
Income taxes payable		115		121
Total current liabilities		2,228		1,917
Long-term debt		2,478		2,477
Long-term operating lease liabilities		290		310
Other liabilities		837		825
Deferred income taxes		27		28
Total liabilities		5,860		5,557
Commitments and contingencies
Stockholders’ equity
Preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding		—		—
Common stock: $1.00 par value; 750,000,000 shares authorized; 130,741,461 shares issued as of September 30, 2023 and June 30, 2023; and 124,001,348 and 123,820,022 shares outstanding as of September 30, 2023 and June 30, 2023, respectively		131		131
Additional paid-in capital		1,246		1,245
Retained earnings		299		583
Treasury stock, at cost: 6,740,113 and 6,921,439 shares as of September 30, 2023 and June 30, 2023, respectively		(1,219)		(1,246)
Accumulated other comprehensive net (loss) income		(494)		(493)
Total Clorox stockholders’ (deficit) equity		(37)		220
Noncontrolling interests		168		168
Total stockholders’ equity		131		388
Total liabilities and stockholders’ equity	$	5,991	$	5,945


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three months ended
	9/30/2023
Costs of products sold	$	11
Selling and administrative expenses	13
Total	$	24


	Three months ended				Inception to date ended
	9/30/2023		9/30/2022			9/30/2023
Costs of products sold	$	—	$	(1)		$	(3)
Selling and administrative expenses	—		1			12
Research and development	—		—			(1)
Other (income) expense, net:
Employee-related costs	—		19			52


Total, net	$	—	$	19		$	60


	Employee-Related Costs		Other		Total
Accrual Balance as of June 30, 2023	$	23	$	5	$	28
Charges	—		—		—
Cash payments	(16)		(5)		(21)

Accrual Balance as of September 30, 2023	$	7	$	—	$	7


	9/30/2023		6/30/2023
Finished goods	$	618	$	595
Raw materials and packaging	178		182
Work in process	20		8
LIFO allowances	(104)		(87)
Total inventories, net	$	712	$	698
Less: Non-current inventories, net (1)	2		2
Total current inventories, net	$	710	$	696


	Gains (losses) recognized in Other comprehensive (loss) income
	Three months ended
	9/30/2023		9/30/2022
Commodity purchase derivative contracts	$	(1)	$	(3)
Foreign exchange derivative contracts	1		1
Interest rate derivative contracts	—		—
Total	$	—	$	(2)


	Location of gains (losses) reclassified from Accumulated other comprehensive net (loss) income into Net earnings	Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings
		Three months ended
		9/30/2023		9/30/2022
Commodity purchase derivative contracts	Cost of products sold	$	(2)	$	4
Foreign exchange derivative contracts	Cost of products sold	—		1
Interest rate derivative contracts	Interest expense	3		3
Total		$	1	$	8


			9/30/2023				6/30/2023
	Balance sheet classification	Fair value hierarchy level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets
Commodity purchase options contracts	Prepaid expenses and other current assets	1	$	—	$	—	$	2	$	2
Commodity purchase swaps contracts	Prepaid expenses and other current assets	2	1		1		—		—

Foreign exchange forward contracts	Prepaid expenses and other current assets	2	2		2		—		—

			$	3	$	3	$	2	$	2
Liabilities
Commodity purchase futures contracts	Accounts payable and accrued liabilities	1	1		1		—		—
Commodity purchase swaps contracts	Accounts payable and accrued liabilities	2	—		—		1		1

			$	1	$	1	$	1	$	1


	Three months ended September 30
(Dollars in millions except per share data; shares in thousands)	Common stock			Additional paid-in capital		Retained earnings		Treasury stock			Accumulated other comprehensive net (loss) income		Noncontrolling interests		Total stockholders’ equity
	Amount		Shares					Amount		Shares
Balance as of June 30, 2022	$	131	130,741	$	1,202	$	1,048	$	(1,346)	(7,589)	$	(479)	$	173	$	729
Net earnings	—		—	—		85		—		—	—		2		87
Other comprehensive (loss) income	—		—	—		—		—		—	(36)		—		(36)
Dividends to Clorox stockholders ($2.36 per share declared)	—		—	—		(293)		—		—	—		—		(293)
Dividends to noncontrolling interests	—		—	—		—		—		—	—		(5)		(5)

Stock-based compensation	—		—	10		—		—		—	—		—		10
Other employee stock plan activities	—		—	(19)		(8)		31		204	—		—		4


Balance as of September 30, 2022	$	131	130,741	$	1,193	$	832	$	(1,315)	(7,385)	$	(515)	$	170	$	496

Balance as of June 30, 2023	$	131	130,741	$	1,245	$	583	$	(1,246)	(6,921)	$	(493)	$	168	$	388
Net earnings (losses)	—		—	—		22		—		—	—		3		25
Other comprehensive (loss) income	—		—	—		—		—		—	(1)		—		(1)
Dividends to Clorox stockholders ($2.40 per share declared)	—		—	—		(300)		—		—	—		—		(300)
Dividends to noncontrolling interests	—		—	—		—		—		—	—		(3)		(3)

Stock-based compensation	—		—	13		—		—		—	—		—		13
Other employee stock plan activities	—		—	(12)		(6)		27		181	—		—		9



Balance as of September 30, 2023	$	131	130,741	$	1,246	$	299	$	(1,219)	(6,740)	$	(494)	$	168	$	131


	Three months ended September 30
	Foreign currency translation adjustments		Net unrealized gains (losses) on derivatives		Pension and postretirement benefit adjustments		Accumulated other comprehensive net (loss) income
Balance as of June 30, 2022	$	(448)	$	121	$	(152)	$	(479)
Other comprehensive (loss) income before reclassifications	(29)		(2)		—		(31)
Amounts reclassified from Accumulated other comprehensive net (loss) income	—		(8)		1		(7)
Income tax benefit (expense)	—		2		—		2
Net current period other comprehensive (loss) income	(29)		(8)		1		(36)
Balance as of September 30, 2022	$	(477)	$	113	$	(151)	$	(515)

Balance as of June 30, 2023	$	(445)	$	99	$	(147)	$	(493)
Other comprehensive (loss) income before reclassifications	(11)		—		11		—
Amounts reclassified from Accumulated other comprehensive net (loss) income	—		(1)		3		2
Income tax benefit (expense), and other	—		—		(3)		(3)
Net current period other comprehensive (loss) income	(11)		(1)		11		(1)
Balance as of September 30, 2023	$	(456)	$	98	$	(136)	$	(494)


	Net sales
	Three months ended
	9/30/2023		9/30/2022
Health and Wellness	$	504	$	657
Household	325		423
Lifestyle	229		320
International	270		285
Corporate and Other	58		55

Total	$	1,386	$	1,740

	Segment adjusted EBIT
	Three months ended
	9/30/2023		9/30/2022
Health and Wellness	$	104	$	133
Household	(4)		22
Lifestyle	19		60
International	34		23
Corporate and Other	(62)		(63)
Total	$	91	$	175
Interest income	10		2
Interest expense	(21)		(22)

Cyberattack costs (1)	(24)		—
Streamlined operating model (2)	—		(19)
Digital capabilities and productivity enhancements investment (3)	(27)		(20)
Earnings before income taxes	$	29	$	116


	Net sales
	Three months ended
	9/30/2023		9/30/2022
Cleaning	32	%	33	%
Professional Products	4		5

Health and Wellness	36	%	38	%
Bags and Wraps	11		11
Cat Litter	8		8
Grilling	5		5
Household	24	%	24	%
Food	9		10
Natural Personal Care	3		4
Water Filtration	5		5
Lifestyle	17	%	19	%
International	19	%	16	%
Corporate and Other	4	%	3	%
Total	100	%	100	%


	Three months ended September 30, 2023
	Percentage change versus the year-ago period
	Reported (GAAP) Net Sales Growth / (Decrease)		Reported Volume		Acquisitions & Divestitures		Foreign Exchange Impact		Price/Mix/ Other (1)		Organic Sales Growth / (Decrease) (Non-GAAP) (2)		Organic Volume (3)
Health and Wellness	(23)	%	(29)	%	—	%	—	%	6	%	(23)	%	(29)	%
Household	(23)		(30)		—		—		7		(23)		(30)
Lifestyle	(28)		(37)		—		—		9		(28)		(37)
International	(5)		(13)		—		(14)		22		9		(13)
Total Company (4)	(20)	%	(26)	%	—	%	(2)	%	8	%	(18)	%	(26)	%


	Net sales
	Three months ended
	9/30/2023		9/30/2022
Health and Wellness	$	504	$	657
Household	325		423
Lifestyle	229		320
International	270		285
Corporate and Other	58		55
Total	$	1,386	$	1,740


	Three months ended
							% of Net Sales
	9/30/2023		9/30/2022		% Change		9/30/2023		9/30/2022
Selling and administrative expenses	$	276	$	261	6	%	19.9	%	15.0	%
Advertising costs	165		161		2		11.9		9.3
Research and development costs	29		32		(9)		2.1		1.8


	Segment adjusted EBIT (1)
	Three months ended
	9/30/2023		9/30/2022
Health and Wellness	$	104	$	133
Household	(4)		22
Lifestyle	19		60
International	34		23
Corporate and Other	(62)		(63)
Total	$	91	$	175
Interest income	10		2
Interest expense	(21)		(22)

Cyberattack costs	(24)		—
Streamlined operating model	—		(19)
Digital capabilities and productivity enhancements investment	(27)		(20)
Earnings before income taxes	$	29	$	116


	Reconciliation of earnings (losses) before income taxes to adjusted EBIT
	Three months ended
	9/30/2023		9/30/2022
Earnings (losses) before income taxes	$	29	$	116
Interest income	(10)		(2)
Interest expense	21		22

Cyberattack costs (1)	24		—
Streamlined operating model (2)	—		19
Digital capabilities and productivity enhancements investment (3)	27		20
Adjusted EBIT	$	91	$	175


Exhibit Number						Exhibit Description
10.1						T he Clorox Company Annual Incentive Plan, amended and restated as of September 20, 2023
31.1						Certification by the Chief Executive Officer of the Company Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2						Certification by the Chief Financial Officer of the Company Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32						Certification by the Chief Executive Officer and Chief Financial Officer of the Company Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.SCH						XBRL Taxonomy Extension Schema Document.
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB						XBRL Taxonomy Extension Label Linkbase Document.
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).


		THE CLOROX COMPANY
		(Registrant)


DATE: November 1, 2023	BY	/s/ Laura Peck
		Laura Peck Vice President – Chief Accounting Officer and Corporate Controller


Date: November 1, 2023


/s/ Linda Rendle
Linda Rendle
Chief Executive Officer


Date: November 1, 2023


/s/ Kevin B. Jacobsen
Kevin B. Jacobsen
Executive Vice President - Chief Financial Officer