CLX - Earnings call transcript Q2 2018

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Operator

Please standby. Good day, ladies and gentlemen. And welcome to The Clorox Company Second Quarter Fiscal Year 2018 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question-and-answer session. reminder, is a recorded. As Instructions] this being call [Operator host to conference, I like your for would now introduce today’s Ms. Lisah Burhan, Company. Clorox for Relations Managing Director of Investor The Ms. Burhan, your you may begin conference.

Lisah Burhan

and for Welcome, thank Evan. everyone joining Thanks, us. you

CEO; me with Financial Benno Chairman our call the and today Robb, On Steve Dorer, are Clorox’ and Officer. Chief

Internet call our of website, a the seven call We’re broadcasting and for at this will days over the replay be available thecloroxcompany.com.

but with SEC non-GAAP not on with In today’s accordance today’s to call, available supplemental will or press the financial tables website, updated particularly as XX-K earnings in description quarterly that other remind measures, and release, also that, EBIT our me be most prepared contains undertakes our results, I refer certain publicly materially Actual review directly end to including to Management found then believes flow, outcomes The EBITDA statements. recognize I’ll address financial today’s earnings forward-looking or in cover expectations well the results management’s of as filing our you financial filings business from that release. it read obligation our year. discussing located as cash our factors of on that in can QX for Let to With results any important outlook discussion with highlights providing tax with to may to information Steve SEC each webcast’s this most update or the outcomes direct to for comparable to investors ongoing impact and and you results financial at would GAAP that limited our better of Please forward-looking of enables materially and profit. plans. the refer free analyze we relates of no SEC. in management’s could debt performance, the as release, results segments. insights recent particular, measures forward-looking Reconciliations plans. filings from well to statements. of in margin, will measures a it our expectations revise legislation. today’s cause our be understand could remarks these differ helpful in differ the to economic Please and or company financial disclaimer the determined as our operations.

Finally, close Q&A. Benno followed will his with perspective by

Aplicare point volume grew QX X%, sales is of on negative company, This the each and increased volume in August year a growth nearly strong impact reflecting total the sale top very the and For of quarter grew X% XXXX. of sales from when ago X%. in

capacity impact In in combined shipments reduced late both carrier X by and quarter. about the addition, sales constraints, of to point were happened transportation the retailer inventory lower due which of adjustment from

volume will Importantly, the though, In the we do events. shipments grew X% results these consumptions X%. Cleaning we I saw from in ahead impact year QX to channel where not in late our quarter grew a tracked meaningful tracking expect now segment. of segment, by well return and sales

shipments Care, yet business is our growth single-digit topline another from in recognizing gains. In This shipments the the Wipes double-digit these share consecutive well Disinfecting of new growth market reflect Consistent results, of volume largest Aplicare of record equity Home top on our high-single grew products. Clorox in volume Growth growth double-digit business, XXth delivered double-digit where behind Care that quarter to it channel, and this, lapping Scentiva across in its sales Home of continues up points and ago with Clorox Care, of sales, QX Laundry Liquid for segment as to that from are for each broad-based pleased by we’re behind grew club with portfolio. on and as Clorox pleased growth in flat hurricane-related which led Recognizing ago launch as Cloromax. retailers mid gains unit, results, the strength Bleach quarter. segment, sales year premium digits new of growth reflects quarterly Clorox was the Clorox The Splash-less see the of by purchases. negative as following We’re continued share when volume about these Bleach volume impact sale stock Clorox includes in Cleaning quarter. year we with for our well Performance Bleach, modestly X the in Home

declined and of the segment, Cleaning sales the our Products within sale Professional Aplicare. by Lastly driven volume

Professional strongly. perform balance the to our However, of Products business continues

growth Turning in volume the QX Glad a in by declined increase higher more e-commerce. gains all-time saw we growth reflecting flat of in in with record mainly was sales segment. businesses. premium and than same volume profitable to decreased the year to with business, club and Starting sales margin offset XX% due lower channel, declines our focus RenewLife by compared our Wraps Household, Bags quarter, OdorShield the offerings, At this strong in offset our other in partially continued with driving and time, shipments ago X%, on sales volume

our control. superior innovation the which odor features business, guaranteed volume leak we year bottom, Charcoal strength reinforced and our ago sales the started following in increase ForceFlex In technology, Plus and best seven-day guard shipping advanced trash just a bags double-digit On quarter. protection new declined, a bag, front, trash yet,

representing a XX% small reminder, Now annual as is the than less relatively of a business, this quarter shipment. for QX

year, new as well we’re we toward as Major with the season second Baseball, League advertising. As head a new this in growing partnership of half launching fiscal

momentum Litter and inventory good for merchandising these adjustment. sales lower our the behind not result, market volume of innovation, and partly continue driven a for share our strong channel two consecutive have have quarter view impact in about the Fresh meaningful by Febreze to in and plans fifth feel declined, full this our to factors Step continues transitory retailer We do growth. business the with as a The late quarter anticipate business. to on year. in pet As them resulting we Cat plan a

Litter Step unmet consumer Fresh Paws launching to this by Low behind biggest Tracking momentum this category an Clean technology. advanced the on building and need in address new exciting We’re

to we’re excited RenewLife, sales increased portion significant grew this each In and turning in and about strong segment, business. channel, Lifestyle volume digits especially and now we’ve progress made volume the is a Finally, double each by X%. e-commerce sales which the of our

by Brita Stream well pitcher Our driven innovation. grew double strong by Last by Long as club sales our and as filter volume digits, merchandising, business each and

growth product health QX, as of consumption the the building to year volume innovation. to and and we focused invest long-term this of with in remain in in our care strong on Burt’s pleased the record the continue all-time first distribution fiscal due business, gain. and impact products, lip positive innovation had We’re delivered largely shipments half and brand behind Bees sales of

the gains barbecue XXth franchise overall, declined, deliver in of remained we retailer excited continues the be of partly cosmetics sauce, about a lower the quarter. To late early, due as the Positively, well as share to quarter to Hidden to new and still While line. KC consumptions segment, Masterpiece continue inventory shipments for and Lifestyle rollout conclude healthy consecutive Valley our volume sales food adjustment.

benefits X%, sales was flat, International, while the Finally, turning volume reflecting mainly grew pricing. of to

Care. to improvement Burt’s in margin while Home business, strategy in selectively Bees, our continue investing Laundry International We on focus drive and our RenewLife, Go to Lean

over Now, provide discuss who the I’ll on our year. will turn it QX updated our for to performance information Steve, more outlook and fiscal

Steve Robb

of Well, sales certainly half pleased And growth thanks, Lisah. X%. we’re with first our

sales full our are on X%. to year to track we outlook deliver Importantly, of X%

the in Our we promising brands half. feel are well performing about innovation second and the good

As and continue of we our press earnings. fiscal actions through release, certainly the balance quarter mentioned which the believe taking commodities, margin build year cost market, the tightening pressuring cost will we are from the facing over to logistics second address We we’re and and these the the impacted right long-term. headwinds in elevated

very with Reform are through take significant result Tax taking these seeing expected as pleased benefits Reform. a we quarter a comment what of I’ll second results. before from to our Tax we’re on moment you Importantly,

the territorial the including congressional, administrative to as to quite and elimination Tax The As of reduction the the U.S. of from a complex, XX%, of deduction. we’re corporate law of approach to foreign policies, all tax any you federal earnings extensive other brings changes, XX% working for the manufacturing adoption and of tax tax still is or income such certain modified changes through know, Reform law. updates or and interpretations domestic its the rate benefits guidance impacts, taxation including of significant

X% earnings per the main based that aspects ago second second several the in or million a to our driver of these million were a our period. to tax fiscal recorded tax income an of applicable $X.XX quarter of $XX is versus offset of U.S. minus There our XX% and tax benefit understanding foreign benefit share, rate of $XX effective increase the tax the rate, approximately current corporate net $XX tax of rate Reform which year tax law, include Now to on quarter foreign from Tax in tax on net benefits partially quarter the year income for our earnings we of impacted deferred the are federal of transition taxable our the $X federal current accumulated million liability, reduction from tax second these credits. revaluation million by one-time

the estimate the is based and be benefit and moving tax our on our forward for mid-XXs over we to understanding rate in to in Bottomline, tax a significantly to estimated long-term, Looking fiscal earnings lower range is of XXXX, tax rate XX% to year our forward, our Directionally, XX%. current cash expected range. flows. the rate be effective analysis,

including deploy cash shareholder with we’ll result, growing our priorities, Directors best to increasing allocation to on a how cash As our excess with consistent cash to shareholders. Board business value, enhance our continue discussions returning of and the

our information, will XX-Q which please more later refer For be to today. filing, available

Now for I’ll second our the quarter. take results financial through you

and quarter on mix, of the strong which includes partially Second X club of about about year point by X% sales quarter, X% point X growth channel in point ago offset over top pricing, volume unfavorable of shipments. reflecting of X.X grew

X in As combined the a supply to Much impact from Aplicare third point constraints. retail the impacted this reminder, ship volume X of quarter. and by second and divestiture negatively quarter carrier sales nearly inventory from were about is adjustments point expected of

pressures in discussed at last last on ago. year included in margin These mentioned driven of transportation we by XX and expected of XX%, be as of points market. points a a XXX the it XXX commodity higher quarter to our in of came I reflecting well as tightening costs, significant a basis call, versus under higher logistics points the we decrease basis further costs, pressure As quarter, hurricane-related basis the gross part earnings

XX Importantly, or savings in invested about programs. million consistent future the basis with $X we cost our and points growth strategy,

from largely strong ago, administrative points savings. Second advertising XX% quarter gross flat expenses essentially basis ago Selling were a and versus benefit and to cost and the year about year million of also margin sales increased includes $XX our quarter promotion XXX to earnings from Tax of reflects share innovation. expenses share $X.XX of product versus $X.XX, factors, of support from a consumer of which the delivered $X.XX includes benefit reduction related Net per demand diluted the of continuing operations earnings all building incremental of investments. we these also to Reform, per sales

Turning ago cash year-to-date versus period, net by provided payments. in year driven flow, the operations compensation to lower by $XXX $XXX million employee continuing incentive was fiscal cash million

no we our flows in second Reform had Tax release, press As the cash on mentioned quarter. in impact

offset and growth outlook, points fiscal to robust continue programs, sales Turning incremental cost modestly, year the down full XXXX our growth This as we our includes now X%. reflecting margin Aplicare mentioned, to of and I Gross about expected previous X% X is sales be of year from higher point assumptions. logistics innovation year pressures anticipate negative sale. partially to be the from between our X by fiscal related commodities to nearly for even impact to versus

previously communicated costs, significant already fiscal from elevated the reflected our outlook pressures reminder, hurricanes. recent year a As including

anticipate extent although of result the seen quarter. a we our the the third not quarters, assumptions, updated in fourth margin to in now gross As second to and be down

margins. above estimated strategy a of to expectations and to and operations, continuing diluted XXXX earnings the right sharp. in we by the half. Turning to This to our we I’ll an margin proposition fiscal of ago close $X.XX to to look we from have second range earnings from taking product our an and for $X.XX EPS lower previous $X.XX. year be increase place in address fiscal and to help year per the priority reflects that $X.XX press range administrative Tax year our $X.XX, in of differentiation now of work XX% in close expect at per considering $X.XX our be challenges, planned we gross reducing on versus brand Reform and adjustments mentioned benefit XX% updated share selling to in as the top range other keep our diluted believe these strongly share to release, pressures remains expenses, saying investing value the through our We’ll the

In finally, as I price partnering shareholder achieve International to productivity to of to result mentioned our savings addition, drive also review Directors value. to And and Go driving as Lean operational with efficiencies. our Tax looking continue margins, will of opportunities are to deploy we our strategy a and earlier, Board further additional Reform, initiatives cash forward enhance our cost support to to increases consider we’ll

Now I’ll to Benno. over turn it

Benno Dorer

Thank you, hello, and Steve, everyone.

key three today’s my Let messages for me with call. share you

results, QX including in year quarter fundamentals. execution X% ago transportation of impact business adjustments full retailer top the on we and inventory half late feel and the impacts sale sales of our good X% first grew and the Aplicare quarter, First, from We about the constraints.

quarter, have with see track X% delayed the importantly We recently, with late shifted to tracking shipments conception fiscal of pleased constraints channel half a January. of in more track target appears X%, on carrier into the remain X% growth ahead year. sales to sales it for Now by shipments we first that were growth and

to or consumers end to year-over-year in and better On at calendar by Importantly, penetration, the our the metric growing an value execution ago. finally, brand And strong supported year, strong and remain king. seen is XX% execution evidenced this of our in portfolio up The where programs basis Household portfolio and fundamentals customers win providing on business years XX-week value, international. is penetration, a is stable by following; we environment as our of a innovation four strong, critical just U.S. continue from have continues with Household the XX% of and the majority critical pricing who we by and also grow. consumers is is

a in Second, strategy, We environment in and through tougher keep cost in of our healthy, job which we’re cost U.S. the staying remains the course manage higher business we face fundamentally environment. committed to strong as our the remain one

points fiscal year and growth we aims and do incremental by sales We will differentiated brands, keep a and pipeline that offense to will in innovation deliver to continue playing investing with products X that of solid in ‘XX.

reduction on are including innovation our investment meaningful margin-accretive With consumers back in demand of and successful technologies. guard categories rollout we we We (XXXX) their engage categories, Glad the half to Cat the solid margin address needs of extension focused up biggest are Clorox for will marketing, strong cost respective in significant and sales online, to digital e-commerce Bathroom stepping that the into Track marketing unmet launch new returns on with year, focus of Clean investing and Scentiva as with and our on several in bags creation Fresh and improvements. well the Cleaning Paws the the innovations trash Low platform as Step leak innovations and Litter Toilet

of investing our for Atlanta enable to We’re facility, our the lower infrastructure capacity. such Home new us expands which Care West cost to self-manufactured our and grow

the options into commodity increases, We we’re strategy our additional for continue with to margin waste price evaluating cost international. improvement, reduction business given expansion, our margin And including support leading Lean Go to environment. support across including

Clorox Tax shareholders. a sustained Reform is significant benefit Third, and for

to shareholder commitment strong as Our as value ever. is creation

including discussions shareholders uses benefits those are work consistent M&A and business with expedient Tax with actively cash for manner. in put to priorities, to we an returning the for are priorities cash shareholders, excess to Our progressing Reform of growth, Board targeted and

business near-term our Tax others there cost some by shareholders. we’re across are our benefits while half industry, and our pleased So, Clorox opportunities we’re for challenges our with results in to bring Reform and first summary, excited the and to

and that’s We our over responsible, competitiveness profitable, touch XXXX important to continue like that’s Q&A, growth to and before our to topic transition. and have we long-term. sustainable to aim go our create value in about of the deliver the to ability final one we CFO and shareholder I’d confidence as on optimistic Strategy we’re

us on strong he I the led that our nearly an how I company. As you succession been and I leader worked through with interactions to these I’ll day-to-day actively his of personally S&P and next capable peer company’s shape And admit of finance. Jacobsen well year. saw financial He’s exemplary served years has able to say our Steve positions during TSR have to the team Q&A. seven fiscal with Kevin Steve pleased of deeply years am and market as leader team Steve friend the am been I planning enabled our I’ll XX for leadership our appoint ahead Clorox less many Clorox after and period good than words in the Clorox to before to He’s XXX%, with and years transition Robb made strong closely of growth has And as pleased Steve the enjoyed Steve the retire the executive We end the smooth XXX% with in the us a been over through total and incredibly performance miss a capacity fortunate to on CFO. XXX much your on will ahead quarter. and Kevin involved He know nothing XX join parting to has decision shareholder few has and as stay equally and company’s the for the company that press of anticipate March work CFO, and past held advisory you go finance grateful him We’ve experienced a release, that, continuity. The in such as an to am return and the development of we strategies. capital such will after across have years. in next Steve in and tenure have a climbed here’s leader financial group. XXst develop operations to has the company years. commitment been Clorox to has alongside call many so such CFO. the and leadership with

Steve Robb

terrific to years. right the And Kevin people Thanks, and I’ve many and Jacobsen, who areas since to relationships who doing supported by about good the Benno. what organization. our the to is March, greatest and privilege leave over always as so the also Chief thing finance an as Well, feeling our Financial served always are after are of appreciate passionate appreciated the much importantly, insights, be it and your friend, with exceptional strategy, XX company’s established tremendous different been certainly investment a outstanding I’ve I as to Clorox and with talented of over I from leader very XXXX. Thank candor. I’ve you Directors questions the The and the committed end very At at a certainly people my listen, most has the Clorox reins course, the our well everyone. your pleased you the shareholders many of I’ll for right and has future. head I have Officer had company, business, of the community management of Board enjoyed team. years rest discussions

Benno Dorer

now it Thank you, Steve. your open for up we’ll And questions.

Operator

from of Powers question Mr. Deutsche Please go comes Dorer. Instructions] Bank. Our first [Operator Steve ahead. you, Thank

Steve Powers

Great. We’ll Thanks miss Steve. and you. congrats

Steve Robb

you. Thank

Steve Powers

in of the facing of and on pressure. of these lots course to so. the pricing to so to lonely. is we just and elevated about am everyone with that But lot look we’ve be face obviously, on calls Lisah, time this in with forward a the There now, Steves Hey, to talked actually look, dynamics net competition, right the working realized feeling challenges trying hold Kevin. three now love on just industry me working call over pricing and there’s I use retailer

result the price just, I segments and realized think margin results trends what down cited. inputs, gross is core and rising face in the obvious you of just we see with the quarter challenges across forward, you the X% in that the this look Household I on essentially upside, on -- a outlook calls? it mix that so guess, Cleaning surprises if that’s confident input again yet trends the that we with and that is on you to outlook your input will like are because tension in cost be there, inflation these and on pricing seems are we revised perpetual be grapple transportation how the as

Steve Robb

Yeah. Thanks, Steve.

off me this. lead on Let

So, costs. for first, commodity our outlook

Just best will opening is of in to I margin headwinds, full modestly, the anticipate point. cost gross estimate about in point included be that my that down that’s this for as ground comments, everyone, at year said we our X commodity

of costs. I fully includes as mind, in as earnings begin the But third fiscal pressure hurricane-related will that move I dissipate. previous certainly on placing it anticipate year we second the quarter. margins. impacted over that keep the $XX that through expect Now time, indicated our should impact we on quarter, Those call about million to downward do

I costs, of some probably are the and permanent. real commodity So think,

to I related dissipate. hurricane of likely them will think some the

So how are about programs doing it? and certainly thing feeling growth, company. is, good we’re the renovation delivering Well, always throughout that’s the profitable very innovation it’s about for growth and our first what we about

cost been has savings. second The

if we to on well investing think, took feel businesses, continue protect need need after we’re the and I margins and days, do pricing I we in good back very in Disinfecting pipeline will we investments but to and that some we quarter growth the like about in it As initiatives, take and that. our incremental the pricing. got health we’ve going feel brands, to to cost cost strength initiatives. did doing still take savings indicated, savings afraid I second I not early those of We and it’s support our Wipes, make think, if tell we’ll you, it’s things, then, three-year our to finally, we And

margin. to got opportunities think, we remain very that that continue we’ve confident build the to I over long-term So,

Benno Dorer

related which is seems the certainly your this underlying comment part ability take Steve, of question. to Perhaps, an to pricing, be Benno. additional Yeah. to one

As the about you Steve I’d U.S. international. marketing think continue a build way And some to love cost two today brands price that innovation in sure rise, years, make said, is and pricing have our confidence three continues our good additional and sensitivities, ago. perhaps, sensitivities and they position share to as brands whereas, as assess in a we your notably, we’ll the lower investments were to information so. that lower over to mine, can do importantly, put to you us And strong that by up price with a last share X%, X%. competitive they reminder, were just better, than are on years price sensitivities decreased on I

and better that’s that have offer XX innovation. remarkable, value the business swing. brands result a fact have of then, course, pretty that in that So and we point as of that the we a That’s we have invested

Importantly, also in XX% competitors our price this sensitivities in absolute lower space. are those about of than

again, that’s our and we look against categories, we of course, brands and we’re significant and are in ours compare value. benefit So those major brands seen our majority related of CPG better as seeing at when the because

has furthered that optimistic to increases, So wants cost strong that we will cautiously certainly about being sure a environment track think taking increases certainly pricing record this executing But price that even brand than we should in certainly confidence. our hard are justified. we reassess price us look and pricing have actions our a obviously, QX them need take make

Steve Powers

talking, of look clear, a you that Okay. be at, to measure And just that elasticity sensitivities that the that price exactly? is what you’re just is

Benno Dorer

data. price hard Those That’s elasticities. Yeah. are

Steve Powers

Okay.

Benno Dorer

Analytics make right of comes supported it so Department And by out supplier an to extra to external our speak. objective

Steve Powers

you, I that think, Okay. that expect technical that for Lisah shipments, and it the about this point from from fact by is what like the like It probably And essentially quarter, you consumption exceeded I questions to that cleanup on comments full expected to guess higher the as message? sounds is come to opposed third and upfront could just X back Steve. if just think back your consumption a sounded the I to just sure right quarter you And year rate forward. then that’s tax, implies in in the go it rate, a just your half the a make want absorb, the tax reverse in it tax -- implies

can what ‘XX you. in tax we’ll help So the us would you higher half in dynamics just the maybe Thank ‘XX, fiscal that a what of driving than just be see back helpful?

Steve Robb

Yeah. Sure.

Let into some we many me off, the absolutely, different ran like everybody carrier think I across in start late constraints industries. quarter

year result, that a to most, But that. meaningful expect if that full didn’t to the to it make instances drivers, on on orders will third through in was it’ll what volume see will short impact third not that in just know actions based all doesn’t quarter don’t need shipped As and we come tight market. and back the had future. we the a be we’re expect taking we in in to quarter of that But we difficult certainly transportation get out, this any today, of obviously challenging course, some the get repeat sure in we

XX% remember tax adjustment half also took a even again the As understanding halves, true-up it to to the year a of it onetime Yes, of XX%, full the about variability quarters in bit had first based a anticipate rate, quarter fair provisional to we Reform to very do the if in Tax rate? and and relates second going rate the to the tax the quarter. large see gain the because effective basis you you’re second on be on tax or Act our across will we

one you’re focus current that’s the half would I probably second the have more into get understanding there as just can what and year, think very would we our of to you it’s I I on some and complex on forward on the a we have difference piece full effective really see based to we year just the going remains you’re tax So out. of you model time rate echo, the going it variability The an the had think of here, and mid-XXs. and legislation, historically low most mid-XXs a XXs biggest rate tax important have away go in thing to take -- but in there. XX

reduction the XX% are So of really U.S. just sales our it’s sizable theist a than more in because and

other So and significantly indicated, cash generation probably that partnering we many years. to coming that’s we’re the can as and with I think up help disproportionately shareholder enhance going benefit. relative And value the that. step will It’s do flow quarters around companies, to we earnings on Benno why things company the Board to in the for

Steve Powers

Thank Perfect. you.

Operator

John Next from English Goldman ahead. Please question go comes from Sachs.

Jason English

if here call John folks. but Hey, me you so choose. Jason you can

thank press margin mentioned and you a afternoon compression Good I thinking compression in mine. talking maybe of can’t the different than the fourth away prepared release third your and you year, bit sort Okay. the for is question, of the definition but for quarters. quick remarks walk about modest clarifying modest question. both One the gross

quantify what does can modest So you mean? that,

Steve Robb

will Jason, be you is our third when try quarter, transportation less here want year, going to the gross for said. definition that fourth hurricane-related I and what does third modest less look we on reason the the gross the what hurricane-related you bit look think quarter through we we at in X mean, is, the had me will number work costs the it When and the third your in right both commodity perspective is a let fair to on be we gross I the there down margin importantly, significantly consistent ask previously for but year. that quarter pressure a than large volatility quarter. margin, and in look but look now of almost this. most margins second Recognizing margin be point? -- at than saw in think we the We the costs. know, with when -- something we’ll quarter gross it believe slightly that quarter margin you will And for down I What is modestly. is full particular, modestly, will when But be at when markets. we will be probably not down When think based what down of fourth to it’s those at absolutely

investing second the savings folding year, It making the are half of fairly in pipeline, doesn’t fiscal supply the and year. how investments we’re of it’s you’ll In future that, been get as we chain just some addition mean not we’ve into the drive the significant that. to across for to three-year cost see less our investments

Jason English

And you. on to I little more Thank in want helpful. That’s zoom Okay. Glad. then bit a

I increase price Waste I it’s corrective setting Glad on that sort the you actions, when of think going getting you Can about I actions you okay. where and you there? was the and like mentioned talk the of some took You from but corrective took it pipeline reference you’re those coming sounds portfolio believe you of took didn’t down business missed any success traction perspective next for color you. innovation, Thank I the on more it, bringing. you the give innovation can the are next on hear architecture on wave comments us Maybe what’s up pricing wave you any

Steve Robb

Yeah. thanks. Jason,

is what so look decrease importance. of used pricing the to at First action, business our portfolio that of to-date the enter see all, that that innovation, you on results, the of and trash that consumers can most has is which Glad pricing down as XX% growth. over is we’re strategic correctly, we that as We returned look take remember by part successful you was share going about said the the trash at you the to to portfolio, share if recent at weeks of Glad price

bag call with game and protection, look yet example our changing it something you that biggest cups worth, and you coming need significant that first category into the it trash out think has odor innovation, advanced bag unmet Glad trash protection, But because the trash consumer happening, and launched addresses best on it’s ForceFlex a kind of Plus leak. as food game you consumer to-date the the remnants, This joint innovation, leakage Glad is accretive leakage that and right control. combination liquid to venture. mind that preferred, its things, plastic and we So, strongest for unique our a trash in an see that that there’s and we and of can gives and of earlier bags, about of margin what was another consumer indicator liquid still what other at we comment changing pour on then strength innovation, is need bag of innovation being Glad it’s is if now. wanted We did in Glad that’s success. ForceFlex, it’s It’s protection consumers

forward right one-two on as another So rollout we business. pricing market this innovation indication a be in and innovation the successful going look on and this Glad that is every have punch, seeing anticipated to to now, and this is

Jason English

a Thanks on. pass I’ll lot guys. it

Operator

Teixeira JPMorgan. Please Andrea from go comes from question ahead. Next

Andrea Teixeira

And cash the uses narrowing M&A remarks, to question. and commentary the press the Thanks or added release. also afternoon. I wanted of taking about my kind you that go prepared for into Good in of Hi. on

sense of explore. be like all So the past life. you Steve, And of we the some just you make wondering phase areas In more looking were new want wish areas in in terms you��re you which to what RenewLife Thank the you. I of the and mentioned could or for was bigger have Lifestyle, with that that would best of would the about successful your something we you think that kind transformational?

Steve Robb

Well, thank I you, Andrea. that. appreciate

Let a perspective. me provide

are again, all, for more Reform. are and of statutory just passed and we’ve excited obviously, today U.S. things from company that, cash more its you’ve U.S. say even from the means infrastructure, savings projects. M&A of would A investments it true was cost projects whether investment before the attractive they December. assets, reduction much tax rate a First I that Tax this And for XX flows than fact got the by we’re a all standpoint. were point reason those is federal of late in couple got

we’ve So that our our good healthy. pipeline to businesses. behind always savings keep invested I brands, is, about feel invested cost We’ve what

the stay to that. course going We’re on

on going the being to We’re also stay course discipline.

have good said, continue opportunities that for will really of we look All as we to always investment. for

Our focus on remains M&A unchanged.

We’re today was in We businesses do more to few ago. even U.S. that’s we in months interest probably of shareholders. anything like? the than it What a open true like That’s best the

margin could that with and we things value. win asset and think businesses tailwinds accretive, drive like are light also have We shareholder that where right are to we categories, in

completely remains this of all unchanged. So,

Now before about process think the also to we we’ve of build to that, our starting though the community I and to cash to up investment cash to start as shareholders. -- returning Board need what’s were and excess talked we we and excess

and to to our cash we allocation I think the even think cash to adds our more priorities, Tax about just returning. probably look so that is Reform have And support you business. first at if

years, second the is increased dividend, priority. the and the and than two the XX The number dividend for more so is dividend we’ve

would been that ratio and I has third just say to X% our targeted The debt-to-EBITDA debt X.X%. is

We’re sitting X.X%. at X.X%, about

I last X.X%. think quarter it was

feel good repurchases. that share we about So in

focused return for inorganically, our comments, and that’s to his continue So have why look going and organically investing we to in I really to for that’s focus. on and growth, and shareholders both my ways think to continue Benno comments cash be then

Andrea Teixeira

you. Thank

can on ask on that talked side. mitigate So something the on kind processes, you investments of SG&A because program? kind thinking, obviously what should I just increasing and about of are like you discretion of this of you’re E&P, if savings more the you exactly saving of be a that to we looking kind as level you a rationalization in your about certain way -- SG&A is reached What cost more

Steve Robb

SG&A disciplined to we have years Well, approach very taken management. for many Yeah. a

savings I a taking and track make many where or the SG& focusing hurt A in that is we way going consumer whether the of going and our value I and out we expenditures or its this brands, they budgeting some where is in the a think record the before shareholders to companies down discretionary been it’s to this. way are just benefit at company were you apply cost to always not, to bringing not think zero environment, spend hurt or I not of doesn’t choices people. had we What had on going we a do we’ve based think really company below it’s nice XX%. take don’t as methodologies doing look difficult that cost number to our cost can

certainly bit So continuation near-term been inflationary pressures from to hurricanes. but it how we to probably going will harder lean a we’re we’ve the in what mitigate that a doing, of to can these of be some see

in So it’s what cost near-term situation where I think facing good discipline tried you’re to some any company we challenges. do

Andrea Teixeira

Okay. Great. Thank you.

Operator

from comes Bonnie question Next Herzog Wells Please ahead. go Fargo. from

Bonnie Herzog

demand trying investments how better out I to Hi, support right. this demand a am understand between I $XX or much has And I your on the driving that this question been plan and guys there you’ve to more building forward? up -- called investment in was had lag the was the when quarter levels All just one-time do and spend and million product incremental money everyone. investment of how historically, I you to innovation. your investment spent increase stepped going guess then accelerating then, growth? where investments, you am topline a

Steve Robb

Yeah. Thanks, Bonnie.

want related first this so to not to all, So, Tax of say, are I Reform. $XX million

of to this that step is not indication up assessment we an need spending. our So

sales and that happy You recently last we’re on based systematically that’s also we’ve do on with and general see more commented already spending years based that and place to we increase have in up that that, we assessment. have advertising today recall know that’s put in generally over demand us, not we we of strategy, will and amount promotion a stepped the the and need spending well where three it’s our that for very still what

at promotion versus demand that we but place. the with look those think we’re with we for up taking always pleased that would our we’re a future years of amount the year point, as I vary, million $XX investment year coincides in fiscal ago not total this estimate put for by we’ve or quarter at investments This sales spend innovation. that So advertising said will year planned

So support speed this the after dollars shelf innovation went -- the to of that to awareness. bulk and

that went and quarter. this winning three and and to building, we’ll equity on in see behind will increase we Notably we’ve margin these in customers, support saw advertising and half, success earlier, We when sales just of the to our Fresh that it the Bees, various we of should Step we and of offense. Perhaps, into types our perhaps, things and and innovations gross launched. awareness advertising sales all strategy, keep I we’re in love savings. We to Scentiva, platform with projects investment Clorox investments promotion. benefit deliver examples like there that playing to where and want see So all This promotion time cost being building, opportunities we Burt’s where first so savings we we bullish as this quarter, is back lastly, at invest the feel said consumers because and where an in not are look strategy, cost support confident future lead it. with last does will a in the sales lag investment innovations

to and We in will our manage total the for our year, that, business the long-term because lend for not the certain and do quarter we number a for place.

approach will these a $XX that. part We million are to and strategic continue take take -- of

Bonnie Herzog

this like morning mentioned Okay. again and know you’ve Bees, highlighted investments helpful. that That’s And the and the you your sounds really the focused doing is categories, one, in is really on growing I faster highlighted past you well that towards lipsticks. it’s Burt’s

for any Burt’s on you. that’s So with Bees? international how opportunities you at you’re And and where working? there Thank more could touch then color and that

Benno Dorer

Yes.

to and We started early, expand but Burt’s are that this excited last Bees like we about So this. we the line cosmetics in quarter. to That continue continue is will quarter.

of We’re end not December. per done

coincide will dates, with so that continue. rollout phased a it’s QX shelf retailers will So reset

of categories, I us. on balm we’ll the compromising Lip say, strong growing we’re a double-digit Its growth keep be and lip am care. share also not new and business, -- quarter. base that why by market I excited with but we last always done up. core solid and discipline is into about the but course, focus to mean opportunity Bees on to Burt’s the balm excited so as do seeing continues for that’s expand on seen International discipline I about we’ve on thing lip So well growth this, am one has

potential. Alibaba’s to distribution to well, XX more Asia innovating than been used platform think commented we’ve recently as has China we through many platform in now countries focus and we continued that we have and expanding in the a good and way going enter e-commerce and We’re markets, Mainland Tmall continue more has that in success that that’s see International and

Bees good as feel both in the well International. U.S., Burt’s about as So in

Bonnie Herzog

Okay. Thank you.

Operator

Our Please comes ahead. Kevin next from Grundy Jefferies. go from question

Kevin Grundy

Thanks. extend I and my Good also Stephen want Kevin. and congratulations to afternoon to

I the wishes on guidance. of wanted to to you. both sales clarification of point So, best growth

apologize a that you’re the has was year-over-year little headwind should includes help. or X from So growth. if dollar even but it bit so Aplicare, track weakened seemly That guidance missed X% and FX this, sales the I a point I mentioning X% to point a but probably the of previously now, X flat be maybe

and So Benno last category I expectations for updated volume changed a you at perspective. from company was like sound all doesn’t the price hoping from has changed anything comment perspective, could since that growth broadly you mix on a guidance? then has your your And it

bit on little wrapped based well? of in but delta encouraged POS could into with pretty touch and there you’re the seeing there’s between a maybe you sort quarter, POS on Thanks. of this that a answer and understanding the late sound data, as You the that shipments what

Benno Dorer

are Steve categories there I’ll quite and can the solid Maybe Yeah, start pretty and are of question. fundamentals first healthy. part Yeah. your answer then

growth I at quite non-tracked is all And look channel really expectations the tracked right line the If channels, healthy. growth is hovering you that’s in at with think our you that X%, category and and above actually where unchanged is. know

than stronger is X%. there growth the So

good. all early certainly what and translate whether a to our feel into Reform whether bring, that’s we’ll look So category that’s what us now. economy is that. good now picking It’s Tax right will consumer environment consumer if But and for overall we’re question we the certainly spend, consumer look is consumer unemployment, The see is categories. that’s on at confidence, where we you it whether fundamentals will about they have stable say good categories the pretty and up to environment seeing and too are about that’s

Steve Robb

believe were this we X% it’s with late little are thinking that about a based other we consistent the from year-to-date of X%, the we’ve to had quarter, and standpoint, quarter. We in will we what issues are we in the outlook just come the we can quarter what obviously, that back X% in And course, it transportation on but still fairly third carrier talked see. range, unchanged, fiscal volume last remains sales we got disappointed solidly in

so you’ve got And Fair a always track, on at math generally, on pretty takes do that. on can looks would on X enough I points the say, some known innovation that. is puts and we’re Applicare much you good, FX, just

of that to plays quarters, been wash, FX, the stuff, other feeling our let’s and that rest much to when But have it’s outlook. all for sales at year. but a pretty see We next couple in and of get the I a just the confident look mix again, how price out

Kevin Grundy

Thanks. Okay.

is this on Powers up, question follow quick earlier. one Steve Just

succinctly, your reached been costs come do clearly, really like start you your where we’ll see follow to now are categories, Have tipping more to is receptive to broadly? a point are take hold, and feel pricing you are for impression pricing seemed not maybe more but for they’ve quarters peers I wages start up, in we retailers more are guys the just Thanks margin it been up have what up we here from perspective. -- here sort your for up. a of Just is and waiting that and fashion costs for to but profound way? mean, logistics the

Benno Dorer

growth, is category suggests I on that comment. you the price right it invest like it’s sensitivities wise what’s market am in comment would well, cost think if brands, thing really if feel get if performing quoted easy to more happening me I are assessing can’t these solid do certainly Taking should have -- days. are to back. you I if your not have for you justify think equities, data I the we brand whether brands you to we don��t have leading innovation, I broadly. pricing be But if us and for

grow and the Wipes about growth to successful best we’re categories, can if you categories I certainly looks to a that. part successfully. say quarter that recipe like everybody, that successful probably is not important shown that retailers also fundamentals and it’s pricing -- of on would for do Clorox I to that think retailers, in category we easy We honest know do been will. for that, has it and but thinking say, Disinfecting business, certainly, pricing to have decide we the wouldn’t last certainly we often the our in certainly shown past can do we relative it about today, easier be possible others position on should We’ve

Kevin Grundy

Thanks, Good luck. Benno.

Operator

Our Merrill next of question Please comes from Olivia Tong from ahead. Bank America Lynch. go

Olivia Tong

and Great. Thanks Kevin. congrats and to Steve

your with your of that some you’re people more tax that build considering deficiencies do terms you color reinvesting that? advertising, us of Board discussions into like about in-store, investments think out like lie, things back, can you capabilities, In benefit you’re to what give the some where having more

Steve Robb

significantly is stepped up demand Olivia, again, the I the consumer of would investments. we’ve Well, guess, remind and we’ve couple hallmarks of what Strategy over everyone successfully building done our years that one I just of XXXX last

You at cost to capital been look savings. up fixed our investments, stepped and growth support that’s both

the good making. So investments I actually we’ve been feel about

can take we’ll significant we’ll make Tax that, always you to course, there’s with of hard Of be hard to a more take shift to doing, don’t but leave a I we want even Reform the there’s going be Reform look because that if a light look. Tax in of but that sure there, impression

capacity, invest to ways our well the while think the our at shareholders of to back opportunity cash biggest have look plenty for just disciplined that capacity staying get as cash take business. terms within look as and is excess and both a I capacity, in hard we to behind to flow of generation borrowing range,

a now shareholders in for return Reform able to Tax of we’re of because good having sheet, as the cash So those Board. are the doing, very invest to growth, cash we’re been the to with because flows the balance discussions also be but and spot, and we’ve

Olivia Tong

because to you the already have I it. -- Cleaning. thought been was Got the you specifically price the I mix should about was mean, what guess, on get QX, price that Cleaning, in mentioned yet Glad, reflected -- I down actions the in price to but And mentioned started wipes? in

a been that So the division expect price reaction to be you far in actions that competitive this do and What’s contributor implemented? to been year? so still has those specific

Lisah Burhan

Olivia, it’s Lisah.

some month some the importantly a still a we Wipes only see month, and So actually double Wipes, lift. over in so But more did little maybe Disinfecting Clorox about you this CDW, Clorox growing Cleaning, pricing digits as is or results so, of channels. quarter see a we’re though Disinfecting

So strength again hope to brands Benno’s question. I of answers that your here. our point,

Olivia Tong

Yeah. Thank It does. you.

Operator

Altobello Joe from Our go Raymond next from Please James. question ahead. comes

Joe Altobello

Thanks. guys. morning, Good

So question for I guess Steve. first

Just out Clorox? to curious if and sticking at there’s any it even thought given year an XX calling

Steve Robb

mind, this in and so stay I said, it’s at going than I years more the company that as keep much Well, to as Benno been on XX an adviser to am end. love

pretty getting to be that close I’ll So mark. XX-year

Joe Altobello

watch actually impact quantify the my mark. And the in delayed question, reductions inventory a Hopefully quarter? and you here get guess, did at shipments is from first, I the XX-year retailer you

Steve Robb

opening that Yeah. comments. We in did certainly our

think very of to the unfolding, transportation you was to about that point this you’re is quarter if of came the think so never reported, for well happened, we have the sales it’s of bit some year. the is retailer were at point estimate, much but on likely if as track the impact what measure, the sales little of we so quarter, best we about on inventory optimistically in quarter, to full and a as looking X course, adjustments, where versus in challenging but we point think challenges, Our the no the to third growth but occur because an way incremental

Joe Altobello

back delayed should we obviously happened January? come point the have that around of part shipments that So should

Steve Robb

Yeah. Yeah.

Joe Altobello

the reductions or that are does not yet? ease, But inventory happened has that seeing you

Benno Dorer

XX years more felt me all, Yeah. his of reassured XX. Joe, like first Steve that

think, We brands of turn come but it turn So, come that it will back, some will we’ve not clearly, I But, back. got our fast and covered. all think that routinely. of

too all perhaps, We it, it but there an inventories some of Steve So, get going is back, upward typically seeing adjustment. to we’re said, not is there things, come not and is in be factor. noise, fiscal a reality, of it’s material when low, think but for end total but which the a of of the unfortunate will quarter no year for year, grand the fiscal be but scheme as

Joe Altobello

million to? was And one item, That’s Okay. last helpful. income that the the housekeeping in just what quarter, in related $X other

Steve Robb

Yeah.

reminder, period, as we swing, -- biggest on that a year-over-year the in about X income was charge was well, is thing about the and million talking just rest that’s it that if took biggest change, our talking yeah, year just would non-cash the $XX charge You’re to a the Aplicare, expense, you’re a I the and ago other small takes. the say puts

Joe Altobello

care. guys. Steve. Okay. Perfect. Thanks, Congratulations Take

Steve Robb

Joe. you, Thank

Operator

comes from Our next from ahead. question go Ali Dibadj Please Bernstein.

Ali Dibadj

guys. Hi,

One So questions. how help it help us a be down. actually much -- just margin, to would trying I quantify had around me was few EBIT

do how basis so so pay whether gross you more, going so grow. down I negative. on below positive. wonder, word, modest the you if I but level, roughly, I you’re I more room that’s gross the margin So down if can I guess, don’t modestly, SG&A, maybe is or another you is you don’t points talk to know constraints. as how going obviously, be don’t and unless a XX so gross And margin to greater, it’s the clearly little constraint already margin, not that’s How know even release down the the do to supplier help that? bit, there’s wonder know do XX% question about that answer I be you I do mean, pressure

quarters least flat you up, I get EBIT of think it? trying couple a guess, and going sense about how to it I SG&A, to and pressures as more be the investment on at be it’s given am it margin to just as little gross bit down a of How business? advertise you much should So, margin, well ago, sounds you’re said the in like going

Steve Robb

So, Steve. is Ali, this

Let couple here. of me questions got -- you a

if see me in answer I can Let turn. one each

more not some move me comment tightening. short, an First just you loads people logistics In there’s but equipment, market about point. logistics, is importantly, brought let important enough because routes. to in up The

very will gross not of I the on pressure that It’s Clorox. It’s will tied we’ve equipment one work so time, We now industry-wide do can to to the and the be an understand reasons this issue. obviously out. our at try outlook. down we margin think just folks think modestly. upward But when the people That’s I much make importantly, So we’re reflect that moved also we in logistics got put that partnering get issue. with costs. the to companies those sure it right with need that the that we orders

associated we with So we’ve are we always that at it to say and execution as be will had in think many, can plans we in years. cost but not changes for without captured ensure making the we challenges, as least that this have best outlook properly operating many good incremental to

would point belt-tightening, to general One, SG&A kinds you near-term again, cost As face things. I just it of things the do relates two when to you expenses, challenges.

think these impacts, the margins, and been margin incremental to I EBIT other thing less thought bit some we than our is going gross compensation cost to a earnings. are and be there’s what because is be going margin obviously, obviously, with pressures, less, to incentive

year lowering well. that So SG&A a effect the will have this bit as of

would margin. I again, just As to EBIT gross far as back circle margin,

hurricanes, modestly of the we’re way to the think and in the market investments gross but think be of again, margin bps, the I tougher. is year. both point commodity long-term probably cost in going down to less making XX expansion something Long-term, this that’s think, year savings. with I logistics the is margin to to EBIT the But, it’s and right XX increases, absolutely we’re just than growth again, bps or cost innovation, why committed range

Ali Dibadj

with is you think about line margin, modestly down would gross in margin EBIT how So it?

Steve Robb

X% the I’ll can you you provided Ali, you that, X% if margin… math. do haven’t I gross just Yeah. for to But but see, as let again, outlook our take sales

Ali Dibadj

Yeah.

Steve Robb

modestly. …

Ali Dibadj

Okay.

Steve Robb

I range. think you can probably do the math on the

Ali Dibadj

Okay.

it reductions even market terms today? get to but I with it from I Benno, as pricing And well a So we mean what spread something competitive wonder for pricing, or Day quarter and Household in volume zero of there’s pressures. Day, at last Wraps I as quarter specifically? we are finally. point, and second SKU commentary is the the okay, then relatively with off So pricing given of does in I would sales, well. I X% has raised this the the to the just ago, questioning, price on there share that zero in are Bags where a shifted was market say, to own market the just maybe want mean start more was aligned before in on Analyst the one you share X% downplayed, the X% and negative comfort that But Analyst at and our well else just then certainly segments relief given competitive some in from whether to in coming going

Steve Robb

the Ali, to midway increase plans. our price on that was change no I first Yeah. want of Glad to there all, confirm

we well, volume, feel to on that we that. So and there And of to increasing innovation now, going this So the shares was is did plan that’s and price great XX% nothing executed course, about innovation. increase enable good so related we about competitive what about pressures? in back, of hit We feel quarter coming that. to

segment of Household at a good year a two on So double is want growth, even though important growth look and shares The litter I’d feel inventory net this we is business, feel about us you our this the which for on at out last we we importantly, about that’s business. Litter to significant adjustments, going but best and of said quarter, growing also had good in category we business innovation and on the now very and never in we’ve litter, good come Glad sales X% that Glad and and retailer affected innovation tested ever Glad by was we about see course, a where I’d are. the XX% XX% is growth just feel decline just click segment then positive stare talk decline. I still to years if over it the and overall.

prospective, year on category XX% sales. Charcoal XXXX last to and a to our X% particularly in we’ve innovation also was in but yes, ago, slowest in invest e-commerce are shows e-commerce able a that of a litter we was be again, season leader This for going. the will business is was we and a digits, on quarter bearing in double-digit off doing winter continued up run we in far can in efforts given double be and e-commerce, business. the been year a which add well by and that that’s you it fruit that quarter, think that and keep mover to of RenewLife down, last increase sales, So of

stages, kind RenewLife are and for first we’re also is on development We something of a about. non-GMO line excited consumer of an the and its all kids we’re need launching launching a which probiotics, kids organic and line important

look Household can’t So and I in how good if individual businesses I but feel at feel the help I segment, the optimistic. and

Ali Dibadj

on pain, you International, bit? in were there same had margins How this Latin little more about improving there, still bit terms the been little a trends little especially was and Okay. trajectory bit Latin and which do Asia does I feel rough volumes and less American was do the America you now. Asian for Last a about of International a similarly you pricing volume question, just good, feel mean, flat, in of clearly,

Benno Dorer

cost had was I yet really Yeah. solid to continues of want challenged, international, not an is we We’ve also not inflation. that in a But, FX we’re where number okay because quarter. be. continued we’re clearly, This headwind. to be seeing -- still feel quarters.

time. of is their and for the us that Argentina, economy looking a requires market at course, internationally in biggest big -- a and We’re is which lot but recovery progressing more

save macroeconomic business that a in that doing selectively opportunities, Lean, continued would well. is that to we But we’re margin macroeconomic and up want well growth that can as business which in Go to QX. very So, control, doing which difficult to to need I drive towards environment for as in initiatives invest higher is everything seen environment profitable haven’t with International, and say, to, we’re ease do, we we that costs, we

Steve Robb

at just making up quarter build on It demand on we’re some over to earnings that was earnings Ali, actually perspective. just well was year-over-year Steve, decisions relates if when basis, look the cost investments represents building decrease and can I $X the you reported of half pressures investments around Benno’s million least a a step is And the about the balance to just Lean. Go consumer in of then comments, to the as at this we it made decrease, and

you be going direction. well. context to across right to and I business. that that keep have But the There’s the margins in think that right So, to long-term we’re variability taking in do in moving put as profitability actions

Ali Dibadj

Okay. Thanks a lot again and Steve. congrats

Steve Robb

Thanks, Ali.

Operator

Markets. question from KeyBanc Gere Capital next from Jason Our comes

Jason Gere

bit more guess afternoon of Good talk you’re make very wanted set on advertising will I that for luck. brief. best a the Okay. and this I to thing the one Steve that was I year. budget little this

So would anything environment, any actually maybe of towards trying you the your that inflation, come realizations. would gross some because then talk the everyone’s to and little down of competitive there net, there out to bit, context shift is start see think the anything can seeing you that price with in cost definitely -- a the to prohibit where to rising in advertising of are gross that you you more get to do have you your categories net just

in should about impact Thank net thinking to for that advertising just So the I margin? was wondering gross if would and relative year to we where be be maybe about you talk can the gross you.

Benno Dorer

Yeah.

the have, Jason, environment sales changed. promotion and net has we -- I in make taxes the the that about to a commented competitive think we So being that’s again, and don’t difference that on of past advertising sales XX% number. right not

So our solid that our in deliver sales have we growth feel we like to it’s outlook. number a

and so over innovation, been have most spend, to whenever be time, opportunity maybe there’s spend. support the because optimize. of to way you you learn then you learn years you step as where in go dollar, company good Wipes. is That’s spending, of the of you and product what the the categories may that terms look like trade a as an for certainly there particular down, In next then our hallmark optimize was single that’s last that’s that’s we and to related other perhaps it know of up over up and innovation, competitive one strategic stepped But to support spend, that opportunity some it go activity at elevated do to three you every in for step certain you so it perhaps to effectiveness long-term

perhaps But for got want and right the that marketplace, in there’s either take is So between optimize unless fiscal that the or years opportunities to that promotion, remains something for be place. advertising it be. the spending existing the by for to that I be in think down, increase coming us ROI seen. about the It sales happens to significant then we to quarter, the fiscal where continue year exactly but will vary total it’s to

Jason Gere

Thank Great. you. Okay.

Operator

Lieberman from comes Barclays. question next Our from Lauren go Please ahead.

Shirley Serrao

of morning. on is Shirley Lieberman. This Lauren Good Hi. Serrao actually behalf

little the filters, on Lifestyle, seen in noticed so of we’ve in Just strengths wanted volume category point data while. the I volume gains of bit positive a deeper just in in into to dig some a double-digit sort volumes that first water

quarter through? early innovations that around read of the details some there and you Thank any pursued initiatives you. some on have in just come the So

Lisah Burhan

Lisah. How Hey, This are Shirley. you? is

we So, we scripts, the my it’s club we importantly, category our new quarters also in really have, of as and our that innovation Brita, have innovation opening the that difference both ago as to as well we growth, you strength know, due couple said remarks today, a and Last recently it’s launched really in made as and shares. Stream saw, Long pitcher filter

Shirley Serrao

Thank Steve. luck and Great. you good

Steve Robb

you. Thank Shirley.

Lisah Burhan

So we question. more will one take

Operator

next Our go comes question Jonathan from Consumer ahead. Please Edge. from Feeney

Jonathan Feeney

questions. much. wanted to Steve, Kevin, so Thanks two congratulations. first ask I

these like Thank price raw long you I happen wonder experience, some of have historical, increased right your in has magnitude Benno, about from retailers little how be private your how slow. magnitude Trends and to on past talked on to -- Glad Steve bit know you’ve going It’s this flu you. of I wondering I surprising material seems go, Google tend I don’t any scares know does theme the price certainly resin, pretty think, we at this perspective generally, times how to higher that I and and and wondering your commodities been any have if your would its a company marketing if increase XXX% label way the Just history you pricing the I about noticed know am through from am has impact to know category? several First, for it cadence takeaway take make as how historically, or it’s historically, of things data historically, just I’ve in of a increases the about, at having think, searches And talked major products. time, up that interest something business. flu either had year-over-year. now helpful? I be for point? CAGNY you’re way a of secondly, considering

Benno Dorer

through resin not On and so, away. pricing goodness a Jonathan, all, in first of we we Yeah. pricing, coffee we’re where take right industry passed and

there it all and depends is So time cost on are what expecting. price, plateau we a lag resin

So strategically. pricing we’re

and actual expectations, price mid-term We’re on development. pricing future with on as an we the cost eye as the well depending

expected that is where be tell really we which to up we’re I can So right as pricing. at significantly mid-term depends, next both it importantly, that, way looking or to months is over is need months up be to now, six elevated, is looking where but at certainly we’re XX you of to the justify cost to stay and cost going believe a

and it with time. that the able pricing to lead some months certainly businesses when time, on that require have with We’re we does this takes done other planning past, pricing execute customers execute we and business in and

think something a in and just with that switch about So a I button. snap don’t done is this a of is

because almost with lead On channel. grew bit not So have may there associated it much. we is right club in double flu means tiny lead digits giving matter high-single for the doing Certainly, Wipes been little double it, time. in some Disinfecting it season, think so QX pricing us but time a digits, a that digits, is strategic and

Clorox up a course, We on also spray, offers also shares is saw Bleach, properties disinfecting and which Clorox of which Clean-Up disinfectant. market

disinfecting products that think certainly our also don’t that’s that get you us capacity to we’re still is flu supply as a course, an season QX, there’s should so we every -- supply just increased them QX February, category planning product Typically be little in materially rid there customers and and enough But strength should need react enough consumers with it, we them and early help can was are elevated our another in of its what that to and it’s it I is demand, I fully we’re have germs. customers we season. with But on early. see help season flu but What store be to peak you we’re to and look tell of consumers it and to. able if certainly November to peak season to that is see it’s typically able to as season, There little two in entering months flu February February, say. a seen. be remains So the

Jonathan Feeney

Thank you.

Steve Robb

Thanks.

Benno Dorer

look think that’s a with you Thank quarter to again when weekend. share speaking good I forward results. our all third in of we Have everyone, So, it. you, I May and

Operator

conference That does for you our conclude for participation. your Thank today.

You may disconnect.

The Clorox Company (CLX) 2 Feb 182018 Q2 Earnings call transcript