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Clorox Company (CLX+2.49%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
Net sales for the quarter decreased by 15% to $1,686 million compared to $1,990 million in the same quarter the previous year. The decline was largely due to the impact of divestitures and the lapping of retail inventory restoration following a cyberattack.
Gross profit for the quarter was $738 million, representing a gross margin of 43.8%, up from 43.5% in the same quarter the previous year. The improvement in gross margin was attributed to cost savings and benefits from divestitures.
Selling and administrative expenses for the quarter were $280 million, representing 16.6% of net sales, compared to 16.2% in the same quarter the previous year. Advertising costs increased to $191 million, reflecting continued brand support.
Net earnings for the quarter were $194 million, with a diluted net earnings per share of $1.54, up from $0.75 in the previous year. The increase was primarily due to the absence of a pension settlement charge and cyberattack expenses recorded in the prior year.
The Health and Wellness segment saw a 13% decrease in net sales to $628 million, with segment adjusted EBIT down by 25% to $193 million, primarily due to lower net sales.
The Household segment reported an 11% decrease in net sales to $446 million, with segment adjusted EBIT down by 48% to $48 million, impacted by lower net sales and higher costs.
The Lifestyle segment experienced a 16% decrease in net sales to $338 million, with segment adjusted EBIT down by 36% to $70 million, primarily due to lower net sales.
The International segment saw a 12% decrease in net sales to $274 million, with segment adjusted EBIT down by 34% to $21 million, primarily due to the divestiture of the Argentina business.
Cash provided by operating activities was $401 million, up from $173 million in the previous year, driven by higher cash earnings and lower tax payments.
The company completed the divestiture of its Better Health VMS business, resulting in a loss of $118 million recorded in the six months ended December 31, 2024.
Clorox does not anticipate significant costs related to the August 2023 cyberattack in future periods, having recorded insurance recoveries of $25 million for the quarter.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Clorox Company quarterly 10-Q report dated February 3, 2025. To report an error, please email earnings@qz.com.