COVID-19 Has Powerful Impact on Clorox Sales
Sales and profits surged at Clorox during the company’s quarter ended March 31, driven by a 32% increase in the company’s laundry, home care and professional products division.
Clorox said its third quarter sales increased 15% and profits surged 31% as it saw strong demand in all its business segments, but it was the cleaning segment that stood out. Sales of cleaning products, which consist of Clorox laundry, home care and professional products, increased 32% to $671 million and operating profits increased 71% to $231 million during the quarterly period ended March 31.
"Our commitment to doing everything we can to support consumers, healthcare facilities and communities is reflected in our strong third-quarter financial results,” said chairman and CEO Benno Dorer. “Beyond the extraordinary growth in our disinfecting products, we saw broad-based growth across all four segments as our portfolio is uniquely positioned to serve consumers in this unprecedented time.”
Strength in the company’s cleaning business drove total sales to increase 15% to nearly $1.8 billion and operating profits to increase 24% to $297 million. Gross margins expanded by 330 basis points to 46.7% which enabled earning per share to increase 31% to $1.89.
Another area where the company saw strong growth was in its lifestyle segment, which consists of products such as food, water filtration, natural personal care and dietary supplements. Combine sales of products in those categories increased 10% to $339 million and operating profits increased 29% to $66 million.