As the Covid-19 pandemic has caused consumers and businesses alike to stock up on disinfectants and other cleaning supplies, The Clorox Co. (CLX, Financial) reported its strongest quarterly sales growth since 1998 before the opening bell on Monday.
The Oakland, California-based company, which manufactures bleach products, Clorox wipes, Glad trash bags, Brita water filters and other consumer goods, posted earnings of $3.22 per share for the first quarter of fiscal 2021, which eclipsed Refinitiv's estimate of $2.32. Net sales grew 27% from the prior-year quarter to $1.92 billion, topping expectations of $1.76 billion.
The company attributed its strong performance to double-digit sales increases in eight of its 10 business units. The health and wellness business, which includes cleaning and professional products as well as vitamins and supplements, saw revenue increase 28% to $813 million. The household division, which encompasses trash bags, saran wrap, charcoal and cat litter, reported 39% sales growth to $500 million. The lifestyle segment, which oversees the food, water filtration and natural personal care products, saw a 17% increase in sales to $318 million, while revenue grew 18% internationally to $285 million.
In a statement, CEO Linda Rendle lauded Clorox's "outstanding results" to start the new year. CNBC reported the company has kept its factories open around the clock in order to try keep up with the demand, but has still fallen short despite shipping products via air and employing more third-party suppliers.
"At a time of global uncertainty, these results speak to the strength of our brands and passion of our people as they stepped up to meet the needs of consumers around the world," she said. "Moving forward, we'll drive our momentum by leaning into our IGNITE strategy. We'll invest strongly in superior brand experiences and strategic growth initiatives in support of our ambition of accelerating long-term profitable growth for the company."
The company also revised its guidance for the fiscal 2021. It is now projecting full-year sales will grow between 5% and 9%, while earnings per share are anticipated to increase between 5% and 8% to $7.70 to $7.95.
"Our priority remains maximizing the supply of our products — leveraging all available resources to help ensure people can access what they need — and continuing to play 100% offense on all our businesses, with a focus on delivering value and innovation that allows us to convert new users to loyal consumers," Rendle said.
Investors responded enthusiastically to the results. With a market cap of $27.24 billion, shares of Clorox were trading 4.67% higher at $216.92 on Monday morning. Year to date, GuruFocus estimates the stock has climbed more than 40%.
Disclosure: No positions.
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