Clorox Sales Remain Flat in Q3 2021

In its fiscal third quarter ending March 31, 2021, The Clorox Company reported flat sales with lower shipments offset by favorable price mix and 1 point of benefit from the July 2020 acquisition of a majority share in the company's joint venture in Saudi Arabia. Organic sales were down 1%.
 
Sales in the Health and Wellness segment—which includes cleaning, professional products, vitamins, minerals and supplements—decreased 8%, mainly due to lower shipments of cleaning and disinfecting products in both the retail and professional channels in comparison to unprecedented growth in the year-ago period as well as supply constraints for some key products.
 
Household segment sales were up 6%, while Lifestyle segment sales remained flat.
 
“As expected, we delivered flat sales in the third quarter compared to 15% growth in the year-ago quarter. What's important is that we're on track to deliver our best full-year top-line growth in more than 20 years,” said CEO Linda Rendle. “Looking ahead, our portfolio continues to play a meaningful role in addressing consumer megatrends that have accelerated in the last 12 months, positioning us well to fulfill our ambition to accelerate long-term, profitable growth.”
 
Clorox's fiscal year sales are still expected to grow between 10% and 13%, reflecting strong front-half sales results as well as the expectation of moderating demand over the balance of the fiscal year.
 
Fiscal year sales continue to assume about 1 point of contribution from the Saudi joint venture acquisition, offset by 1 point from unfavorable foreign exchange rates. Fiscal year organic sales continue to assume a 10% to 13% growth range.