CLX - Earnings call transcript Q3 2021

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Operator

Good day ladies and gentlemen and welcome to The Clorox Company Third Quarter Fiscal Year 2021 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. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce your host for today's call Ms. of for President Clorox Vice Burhan, Investor The Relations Company. Lisah Ms. may begin you your Burhan, conference.

Lisah Burhan

everyone you our understanding to and We Welcome to providing Christy. Thanks thank this to dynamic and well. start quarter families some and context hope you for your are the safe then commentary continuing emerge I'll have an Then our we're environment stay with give I'll from by of results as this you highlights from us. joining as seeing will as outlook. our we pandemic. segments. each company total FY of usual address begin topline Kevin to well my XXXX

cloroxcompany.com. over perspective call few Linda we current forward-looking We're the These for our go discussion management's be offer on expected at her may with outcome. call a results potential or including close to statements results. impact or Today's available reminders Internet of at replay and the of Finally, COVID-XX. will seven differ from and the expectations before statements A based Q&A. related days into actual will this website contains we'll but are broadcasting statements

important this the today's To quarter, the complexities to various takeaways. such share most of the website at financial In are earnings refer which Please some that with to of non-GAAP both on as which we located the see GAAP which to include forward-looking to through section like information of forward-looking help been SEC. non-GAAP affect factors identifies measures end our three statements what directly reconcile financial addition refer has release which key could financial and statements and section non-GAAP I'd measures. certain filed may we the cut the also measures, posted that tables comparable

track for on year. another strong First, we're

XXXX basis project XX% growth. also On outlook stack sales continues double-digit deliver we're two-year FY to to growth. a sales positioned about Our

financial to to accelerate see performance. we our opportunity continue Second, long-term

the to priorities growth during third, disinfecting stick the pandemic and strategy practices. our changed into into new global develop have the enhanced hygiene Clorox that a leaning behaviors consumer critical center We're has runways innovation including to enabler. help are IGNITE of leveraging around And pandemic relevance through which people many reinforced only example, technology For brand. as a expected changes these

Now, to quarter third turning our results.

deliver percentage begin the and US and to vaccinated. of the sprays. period of demand supply demand pre-pandemic, Health a joint growth Our household Arabia. ago result XX% in consumer wipes of penetration results strategy that remains in us of majority quarter. one in from very stack at in bleach wipes a in down organic shipments an Saudi lower has return the basis acquisition population XXXX business sales much a as were and about of sales benefit enabled level On persistent stocks ongoing pandemic. venture reflected from even a sales on in our quarter declines The In normal and ago in in higher and of X%. reflect number products to Segment lower strong, new the disinfecting sales the Nonetheless, shipments two-year these reflecting in and a QX onset growth constraints down the given this relative we products. than the gave see year consumers when cleaning Cleaning top year of with PPD. turned of Cleaning in to to out us growing Pine-Sol and Sales in our QX net to sprays were our also July share point flat reflecting declined are Wellness X% normalization our segment, a

Clorox double-digits businesses to and of lead wipes shares. will assortment and to wipes excited fundamentals innovation product to during our third continues to and many remain other including compostable PPD expected, strong as sprays, turn Clorox and demand category and a the in and consumption period. pipeline, consumption improve, quarter, continuing remain disinfecting products like supply Scentiva continue as the disinfecting cleaning, and healthy. we should innovation relative close the to ability some wipes lower availability to were year-ago pandemic, limited normalized. in progress We're partnerships to back we've our of be tailwinds, sprays by in and during bringing this in by of the down our With improvements sprays which and has products quarter disinfectants, cleaning to to also supply. remain wipes. increase cleaning elevated As the due Professional disinfecting out-of-home Sales had And shipments trends pause for Similar and be Products bleach in business consumer-preferred our in our

about good the feel of prospects we Importantly, this business.

the Lastly, driven segment, by third quarter, the were lower brands within COVID-XX. driven were a disruption spending. in from in strategic and by our of higher a vitamins, trade our Notably, this we business to period, sales year-ago chain-related shipments lapping up in and decrease supplements our double-digit minerals supply

shortly. to learned today's release, net moving forward recorded implementing strong business very which and Despite to remain our on at the our a strategy our remain and cleaning, we in and stay $XXX business, well press this businesses portfolio demand non-cash Kevin will differently, two-year we've in our several across continuing million our above we what to our address others. With related sales impact more focused setback, consumers in allocation. constrained. acquiring other VMS challenging long-term. as and supply incorporating targets. challenges, noted QX impairment As home more charge be segments some where the as Lifestyle, strong these since businesses In on gone some growth a meaningful refreshed detail get Similar of contributor supply Brita, And benefiting becoming before impacted the brief have this the continue of in clarity There business tailwinds Again, just in long-term continued I Household brands. inventory and results to in we well results, closures segments period we're into especially elevated year-ago on the in these context back the Nonetheless, path stack growth levels in space. businesses. have

their Turning a retail Through to we've in business. X% with three Kingsford's new growth, growth charcoal continue million businesses invested by for the Quarterly business. which up consecutive this collaborations were create past and double-digits segment. a to able including been sales and for more recorded In year, products Household lasting introduced the for household sales with was to new backyard, fourth shipments all up were Grilling of in one will grow buying our penetration pellet quarter. Kingsford to partners, And what the they've - record-setting in products strategic than share. we've tailwind households. quarter a

our new sales our the do and pricing grilling Kingsford reduce innovation as into been especially Gain Kingsford lapping stockpiling despite locations the helping the pellet peak Our we've e-commerce for the with distribution and to Litter consumer more increased year-ago driving period. innovation. and performance season this Fresh periods. business head Cat we the success in strong important, forces – quarter, of The comparable tough for QX. in Step with continues its channel goodness build will pantry flavors and even lineup planned nationwide. forward. strategy well is have improved environment, healthy behind also which this peak is these more of at going our has led a business, lineup us distribution, less All loading find product easier momentum a which innovation for making build And to it and product promotional to consumers

the during past lower as has that in Glad the record Additionally, sales after year continue mainly cat the necessities promotion. to number litter occurred ended. increased for like QX, pet of years to long resonate will has adoptions purchase behind trade parents pandemic come

consumption of As a at quarter, we XXXX. while late didn't the year-ago FY end in tail elevated see occur began until demand the reminder, heavy to

be action So have QX challenging comparison rising we July. significant To a manage than a effective seen pricing will those we've QX. a costs, recent announced in In months, brand price this inflation. on also resin more

resonates inflationary manage long toolbox. the using profitable holistically in growth to will our pressures a driven for that all approach time. category consumers, has allow mentioned, we've innovation tools with the As us continue for introducing we'll This which

over environmental footprint, reduced higher-quality overall has XX%, that resin us improving by to decade, with allowed while bag past the use reduce cost using a example, stronger all we've structure started resulting For time. our in a over

were has driven with the had flat. quarter trash high. seasonings. Our The for Glad launch. consumption at-home sales our high penetration bottle business This The another of to bags ongoing latest Lifestyle a Hidden meals of Clorox and its XXXX on fall top Ranch single-digit has dressings straight growth In growth since dry Food sales innovation continued QX fourth trend segment, behind in Valley year-ago period. of increase well double-digit a ForceFlex growth record household performing been was

further partly in consumption much for as than its of QX this were optimism has these both by has and performing fueled been down decelerated well. the buying replacement. in Valley success plant Our spikes remained dressing, from is innovation level pre-pandemic, category right-based – Despite sales Valley strong our year-ago Brita double-digits, by higher consumption latest the business results, COVID-related ranch both by filter Hidden Secret have Hidden Sauces the which fueled period.

On filters already headwinds its mobility usage pantry by Brita, the up and as lapping As and also to balm. note, the positive care the the behavior, a during of has decreased have and begin our the for shopping we're The created Still, that brand position these to decreased one not progress wipes was share. Bees the recover and due sales. the caught sprays, us has period. changes number face and Burt’s in our care make with in in supply in both lip helped digits, segments. wearing year-ago have Mask which and impacting effect issues, chains not maintained, business fortified but supply occurred with addressing have double to only lip also shares loading sales demand continuing in particularly pandemic.

business new towelette growth be online of long-term innovation for scent. in business. our bright watermelon contribute returning continued and combined improving and colors, the mobility consumer growth in prospects this to and prepare we confidence this cosmetics spots, the consumers channels, These with the As sizes in we'll value to launching

most yet apart international Unlike operate has where US, segments. Lastly, unique high markets we that from don't other us its vaccination have the International rates. our sets own dynamics

the points for Saudi from XX% of and headwinds currency two JV rate the acquisition growth remain stack top In foreign combined grew XX%. X%. year-ago on impact are result, is elevated. The As segment, benefit sales QX and period. business from International for about of about about reflect points our the of which a this disinfecting seven product, in two-year growth results demand cleaning These

was growth wipes, sourced innovation sales and Excluding fiscal the launched acquisition, all impact this mainly by growth year. packs differentiation XX in chain brands in categories, we of business. than our flat strong Saudi of the international more the feel and line of supply introduction dedicated new this of our about disinfecting driven Clorox of like half this their good a innovation of With respective runway countries from

I'll it outlook as our will who updated to as XXXX. Kevin, Now, for discuss performance, well our over FY turn QX

Kevin Jacobsen

today. for Thank hope us you, joining are Lisah, well. families and and you your thank you everyone We

the not Minerals review in results, this we our charge our first and more acquisition, expectations. of profit brands, Health, transactions. of today. X% small impairment an Vitamins investments the scale acquired we lower result has increased address which projections Supplements the these small expectations third on company level was brands. competitive about business, our two assumes to and Performance sales, on of several comprising at driven our I business separate valuation, need sales time represents the total The Before non-cash initial versus me primarily by let and delivered impairment quarter Better updated The for activity of a reported

This income updated our values Supplement and initial or impairment of we of a valuation, its to other a Vitamin, non-cash and benefit unit. lower pretax of record purchase million with business associated per goodwill, $XXX charge this result of share. carrying about assets the we to Net a the price. trademarks Mineral As charge of XX% of represents $X.XX $XX tax net $XXX impairment, deferred a million recorded of

strategy. forward, portfolio Going we our are implementing refreshed

in health wellness. focus given believe attractiveness the driven space, by on fit, strong VMS tailwinds and to strategic continue We of the and our the consumer

operating meaningful Importantly, we a company fully clarity be results this our over contributor on overall will the ensure business underlying that of results To non-cash third will the our to expect quarter exclude my comments time. VMS the of impairment. our impact around performance business,

to venture acquisition. gain non-cash includes from it joint $X.XX a onetime outlook. $X.XX to comments contribute to our Saudi reported In excluding while a important EPS, $X.XX to of will Saudi is the that EPS It's our to impact addition, the gain my exclude joint that we're our related expected adjusted venture note, non-cash

outlook, acquisition. year in to charge, to forward, fiscal continuing primarily our intangible amortization Moving $X.XX $X.XX ongoing adjusted to the an include from we EPS XXXX related are

our our on review third I fiscal quarter Before I'll year briefly outlook. results, comment

As venture you a provided release, fiscal acquisition adjusted our non-cash impact in year non-cash quarter, excludes impairment confirmed in from gain an we've quarter. sales saw which the outlook, first the of press and in outlook a the as well as our Saudi joint one-time EPS third the VMS

is operational excluding our perspective, around items, these outlook. help from performance, which underlying For previous provide clarity unchanged our

historical XX% of deliver performance. strong our growth, track on I'm our Importantly above we're about another stack targeting for year financial well to shareholders, two-year a sales pleased

turning Now, quarter our results. to third

flat, year-ago initial spike saw were to COVID-XX. comparison quarter the in when XX% the Third sales growth we from in quarter,

results favorable third X volume, point Saudi from and a sales decline X declined reflect joint quarter an offset of sales our X%. On benefit points Our organic in X-point organic venture basis, price/mix acquisition. by

sales certainly across there's reflects variability although Our to navigate. largely environment a we as continue which dynamic expected, portfolio, very in came results our

businesses. basis we for XX.X%, year-ago primarily points higher temporary to of earlier related we Gross Gross from as volume sales Gross environment, US costs, six also reflects events Importantly, the to XX basis points the rising the These XXX experienced and quarter basis to the offset of points as costs, of came as out points in spending, the partially related basis weather higher incentive savings. non-cash negative Southern and XX.X% of compared factors percentage compensation in XXX primarily results year-ago XXX are of grew points resulting of cost inflationary XX.X% compared XX.X%, by quarter. the favorable impacted expenses, impairment at Selling trade lower XXX expenses, decreased commodity sales, by points cost a in to including promotion and came strong and administrative to XX% percentage the promotion in innovation robust our support on XXX for quarter. half continued of quarter manufacturing the sales, program as investment XX%, the VMS our business. reflect U.S. fiscal partially year. a resin, the Advertising at impact across levels, of extreme about well of at in in XXX lower of COVID-XX of in margin basis portfolio, this back a basis investments to spending sales pronounced with a reflecting logistics sales, in margin margin the reflecting quarter.

effective negative rate business. by we driven took VMS X.X%, our third Our quarter impairment the on was tax charge

quarter, the excess tax $X.XX decline our a for stock-based XX% Excluding as compared quarter third adjusted factors, $X.XX to in third the charge, versus quarter in per XX%. impairment the year-ago these year-ago lap on of we share came was compensation. rate quarter, the benefits in all Net tax at earnings XX%, of

operations the saw $XXX $XXX press net increase million release, an year-ago versus also our by million you cash provided of year-to-date in was XX%. in period, As

flow profitable sales tax payments was higher cash compensation and incentive higher offset partially strong due employee Our growth, to payments. by

to year updated Turning fiscal outlook. our

year pandemic continue as to strength our We beyond XX%, of we moderating in our the of for US half balance prior between to comparisons. demand year the the fiscal grow and XX% lap reflecting assumptions sales results peak ongoing anticipate fiscal first over the and to year exceptional move the of the

and from continues of expect business. expenses sales incentive a come We non-cash XX% remain by fiscal costs. organic growth. year third of point an administrative to due pronounced one in foreign to be our now due to Our sales outlook fiscal We selling to expect commodity more same. down to headwinds contribution our the VMS basis, elevated year reflecting to exchange on transportation margin XX% costs for quarter primarily compensation assume from offset and joint XX% our impairment assumptions lower below now of gross Saudi venture headwinds our one point On

spend advertising Additionally, innovation assumption we XX% back about spending of support fiscal continue half to reflecting in program. ongoing to anticipate to sales, year XX% about our our be to the

fiscal For ensure spend to to loyalty $XXX to year million we're year, planning a we're build brands. perspective, lifetime to ago about consumers leaning into this versus engaging more our

to growth, rate adjusted strong to and fiscal X% the and and reported assumptions X% by between we in $X.XX these increasingly our expect to in like with We a In fiscal mentioned as that continue basis to I top US, that dynamic factors, our we're EPS I'd the line navigating year partially factors peak be a be the on quarter, adjusted highly between medium-term. we continued XX% following an elevated the transition the cost can $X.XX results tax Net or including note anticipate to pandemic environment near the offset environment. of to reflecting influence last closing, XX%. performance from of year operating

First, category and consumption dynamics trends.

recognize As increasingly get to the a consumer will in higher they we trends become to US, in mobile portfolio changes demand role pandemic. which XX as line. in in demand short-term although to said our pandemic, in months, addressing megatrends top for different on longer-term, we accelerated That that over are of and eye an people will believe our keeping to contribute play the our last stages the continue these have cause varying levels products meaningful could prior we're markets vaccinated variability relative more

remains creates This recognizing extended to all while for supply capacity, that And another toolkit long-term. elevated pricing the our production us plan areas teams portfolio. which I'll capacity increased key finally, opportunities production expand for headwinds, keeping pronounced our while reinforce ongoing we're key sights to our priority on the more with shareholders, as of a support in set on demand. Second, this our third, chain. ongoing deliver our to year navigate we'll volatility including continue our cost tools look And to track every the to strong for opportunity for on our in

to X%. X% long-term our technology, even further plans in in we capacity lean raised our with and our brands, saw of of with to where to And I'll shareholders. efforts early create investments we of in you believe to service course, These to behind our production are Based February, value have continued success we sales ambition that to opportunities long-term our growth it strong a profitable all right for broader As strategy IGNITE turn people, target growth, the new our annual and win. to Linda. accelerate our on over

Linda Rendle

over business Out day. the Thanks, me here's and strategic take for what clearer. US, our being to people for And with our of in single led well. our time the to choices how do the and all are when for around were as consumer we to you and thrive public facing our health Kevin. consumers, and were back by we our we retail managed hope helped safety months right taking at Hello, well doing We call. A course ago territory. company, I purpose be look workers. of and as unchartered health wellness things. to is today's everyone pandemic XX today. stayed including serve thank to true spiked of away and actions, our every you world what's the support year the last knew us thing all you values, this in emphasizing I around We needs. communities which this put We this, we've that us in the our important and the health to with care role our our mind, three everything our from With people people ensuring of makes commitment actions. and partners the embraced support prioritize guiding proud a champion care staying our could We we became teammates center at

rewarded positioned consumers the business well have dedication communities our grateful team's our I'm is world. and people serving the First, for future. to our around

of in brands was our tough and the many before is play significantly year, turned across for than the have most larger brands We it our trusted People household incredibly support, to portfolio, business households. this an in our penetration with out pandemic. during in US see strong XX% has Clorox brands trusted Our categories.

showing users we strong We across core continue rates in base base quarter. And results, this to brands our larger Lisah in course, very consumers. strong of repeat last focus a flat mentioned, including to versus comparison the to loyal our And on in is up year. see year-ago new as continue sales of among retaining and this

hit growth worth stack message environment. year. quarter. that, in two-year third is in it's perspective, we noting track mentioned, And delivered stack the to of Kevin address about of priorities we XX% growth place continue that company on as to we're sales very for For near-term a total two-year strategic as have sales we in second XX% plans navigate dynamic the a to fiscal My a

on improve us. more but supply, in in focus higher-than-anticipated chain with there's working portfolio. for sources out. encouraged remains flat as every our to top us supply disruptions work third-party to lever priority available supply We're continue a progress, run quarter overall I'm improving by we our including be to to demand after supply, pulling of our and the parts First, third done certain especially weather-related

about we to That costs to want from And We supply Next, And to said, share. cost share by pressures shares consumption market expect we are challenges. critical our discussed, as relative continued strong recover to Kevin input across levels. declines and tightening facing and not we're driven brands fully feel portfolio transportation recent good acknowledge a improve seeing market. where demand pre-pandemic stronger key them supply primarily that for we capacity, market we are continue be. as

consumer their pursuing prioritizing what to brands. models the more expected cleaning, about to as to drinking we do accelerated companies serve as it people our health spending conviction reduction, our of management, routines increases cost on and to mitigate more best, including number taking inflation. because One our changed. relevant and a a and leveraging future, many significant trade serve these focus formed to And opportunity the as generated margin always support home address cost And net strategy water, including generate to the we a the strategy that in do strength, time we strategy on margins, our is in is us innovation, With choices trash particularly putting still last set role relentless have profitable taking more latest of has the meal to persist, key by for vitamins to count hygiene, less an are to four pandemic. helped to and past behaviors price guided has to approach makes our continue have purpose who hybrid this. revenue and during the pricing year, supplements tells tools be home. message What's pandemic our sights us is The think learned that of savings. support and through accelerate at and our by holistic of occasions we our our growth. long-term on We're around workforce, people proving fuel by ambition that consumer have at most that even and With of more My IGNITE IGNITE world. be more more and our strategy pressures a leverages center the to accretive people research growth we In megatrends the expect we continue online. more

to people's a of position in role every to to be portfolio these have a opportunities intention unique and Our we lives support growth continues accelerating new in play meaningful trends.

our focus personalizing XXX and in with especially, so our forward, the and get that innovation that to in consumer of organization respond impact demand between XXXX; innovation we're we turnaround supply strong a in growth categories. That consumers and in on the the of deliver of know people million is innovating retailers for innovating future multiyear Innovating on for growth. our areas we year the an and Kingsford consumer leadership to smarter, to vision across strength. long-term value through superior lens and and healthy and societal leaning platforms we ESG more products, to how larger because that The chain enables great with by business; Moving category contributing is means; our technology remaining into through example to us significantly business brand our strategic experiences support work IGNITE And category profitable and faster how shopper work stickier makes core us of link value quickly to our strategy spikes. engagement; creation. finally, our case our key innovating believe our partnering innovation

only operations, pursuing meaningful We've some but business learning last not ESG matter are development reduce focused Here XXXX. also program person ESG introducing XX% to our by the XX% our but also that highlights into it because their We're our corporate of on every in and compostable brand, XX% our the a fiber XXX% means achieved company-wide goal packaging to to ESG are in for way sustainability behind our of by toward in or by and packaging quarter. our embedded We're they're plastic XXXX. virgin integration goal recyclable, our every not And consumers. efforts. embedding goals, brands with only goals contributing rallying reusable

As an poor-quality people of facing clean XXXX, to a This the water. Brita's heart purpose. has the water million to US goal in tap brand to provide X.X Brita access example by speaks

call. Lisah at open questions, the I of echo beginning it to I'd mentioned like takeaways the important the up Before for

for year. we're First, strong another track on

the accelerate opportunity we'll us Second, long-term to growth. seize profitable before

for putting the you strategy at line center, the for lay the people leveraging questions. IGNITE emphasizing our has pandemic open Third, now and proven the groundwork its may the relevance face the of innovation technology to future. in Operator, by

Operator

Thank first question Morgan you. Dara of [Operator Stanley. Mohsenian Instructions] from comes Your

Dara Mohsenian

guys. Hi,

Kevin Jacobsen

Dara. Hi,

Dara Mohsenian

for Two things me.

cases the range working next you can top-line longer-term, you can clarify just think higher top-line theory long-term greater few XXXX supply puts X% more time sort headwinds, are COVID is it the period about and but First, what are talked chain CAGNY. Is challenges opportunity that some are from one as a specifically CAGNY, up. there lot In then drove top here in some difficult that that? standpoint. over? in growth fiscal you quarters range? X% second a just Does from on. trying to clarify off. Vaccine professional we down at to comparisons, dropping line long-term counts XXXX-XXXX? Those understand the mentioned which going fiscal international are the you've of that you're growth guidance about and down a And Just post of of include And that takes

business you're over So in know how could facing, of a headwinds next I about give bit through of? how to than comparisons to a of some think you you're specific number, that think longer-term thinking or with positive I out you the do some give some here? of to positive not it the Thanks. but that particularly the you're play business was play of terms those take the out? just tailwinds look those you near-term, the as next decelerate Does those Could with does areas hoping few offset more line as going or think trying tailwinds. just top quarters in guys that long over of out here the us quarters few versus potentially context you

Kevin Jacobsen

Sure Dara. back February. your as goal And long-term sales X% of let raised mentioned me you first in with to X% or start our question, we

XXXX. consistent through of have playing get at and IGNITE to going half we we that's I which terms the raised XXXX, as sales in February fiscal be back of And runs back is timing sales to talked back the we're view, Dara with part how roughly to that point see In And year out back to our of our year we the we expect same strategy, expectation flat of half in X%. the our QX. as the our be long-term by that's the And into year. X% outlook of

by this So three comps we're slowdown work a expect X% comps forward. more that's for fully we When new we products through next got rates, as mobility, we at at going demand we to pandemic And we've know, that through as normalized get as that's in you really that quarters. for But January, the new as see elevated think level, tough of see next rate here to this expected. we higher those the phase X% we back we this some get we'll vaccination were level.

Dara Mohsenian

That's of few and line any and as context impact particularly Great. tailwinds perspective much the from progress those next that And supply some how top think quarters over challenges? here? headwinds a chain on then Any around that have helpful. you could front,

Linda Rendle

the out business certainly even seeing seeing the the cleaning some of welcome where of in We're with one. those take the I'll we for the cornerstone new little definitely behavior picture you're fully what depending on higher open need increase, I'll consumer But we're seeing we're us behaviors Sure. the mobility script with is home. new U.S. seeing that maybe a still In disinfection color. capacity big but health more look and in the both seeing as doing many or mentioned in the people starting this And inside as vaccinated people issue case, bit yet in We're for has back. the they we're long-term. embrace they're as to not on definitely that folks. that increased at trend start continue as the point tailwinds we're to And we over for are sticky are getting and that cases. as to and been has mobility of be really businesses hygiene market seeing routines. and mid people even

as seeing see And definitely a improve. to to how looking impact mobility the a we're we're will to both quarters long-term that but QX. short-term future as So headwind

of persisting. I are care we taking people to think continue health other their wellness things the and around see that

of are who a hasn't even sales installed with during we're Brita of and for base, to have sure. in home quarter the home. of in example, continues role a expectations mobility, as as healthier and was lot business will that's to continuing as what habits. good And to strong in quest to are persist, people on many people with people to that XX% we that last more at average But work seeing people Digital then, persist pandemic pitchers new digital at accelerate. And and all, continue course, in for working people be more and the And home into that And have we're our with well-know we've from you as eating really that changed that already. filter leaning position take e-com from marketing home. purchased seeing them in who see then, we've more to a were than continue up We industry we the business over be over be their the three period you built our year-to-date. And of above think for tailwind. that our tailwind invested years continues trend a our our

Kingsford see So Hidden business our be business trash whether business, to that there's our or in that on definitely our we trend. positivity Ranch stay-at-home Valley on our impact that

chain sales. to after all we've months be pre-pandemic. those of the perspective, in a challenge. gone that long-term. increased a we headwind that were bigger to the be think We're a And and are company what of our tremendous the means amount I as have has going much done look coming we supply in than chain. And From we supply complexity tailwinds, So a continued to is

nodes. more have We lot a

we're that more We have continues managed closely something we weather quarter, be a it's to experienced And course being a overall to were in help majeures a it, really then, didn't we're chain that we disruptions to more hinder be watching, And But or although our and that -- deliver us. few products. this watching supply of helping a the something what through lot something that force parties quarter commitment to from be manage we help quite were a as third our able forward. look the continues see expanded, any three could we perspective, have. volatility caused

Dara Mohsenian

if in potentially other rest Is matter if about, still it How just Is talk it obviously more can have a on Can about place one Glad? do bit pricing, Thanks. across you of in, of Glad think beyond the communicate And rest just when the of decided? you in it? a portfolio portfolio? the the sneak pricing you little you helpful. you opportunities in That's areas. front, being increases, the the I mentioned Great. pricing plans

Linda Rendle

absolutely do innovation. points, launch XX seeing what and the the we the relentless so approach from looking points it, our incremental a entire well. is we year perspective. QX, And inflationary as things And include have And highlighted the an as this to set that perspective across a program, ecosystem beginning to our we innovation pricing like now Kevin net margin Absolutely, increases have continuing We're think management, of is toolbox accretive very at XX started I industry get robust across and that and and reductions. holistic. And trade revenue have address highlighted terrific is pressure, Lisah long-term as of and that their in EBIT as way to of savings. then, we cost price in on scripts, will both, how, sights from retailer innovations we our focus course, is margin basis list accretion basis this, goal we on a

this. from we're strength now, entire that coming place of And toolbox employing across all of our in we're So a right businesses.

brands strong Our right are now.

consumer is repeats. strong had value never a have We seeing measure. We're Household penetration strong. higher

we And to we're we're we're we're is I'll to and price measured in I want We're be will across category-by-category take broader I category with it hear looking is But message the ability targeted very tell businesses. we going in we're this. But all at -- And weighing feeling confident want by you, our we're broadly excellence. executing that. to So that. And the what you across -- on our surgical be because portfolio. evaluating in focused of really course very environment.

Dara Mohsenian

Thank you.

Operator

you. Thank

is question Securities. Wells of Carey Chris next from Fargo Your

Chris Carey

everyone. Hi

just line want a And follow-up of that I So around pricing. on, then, question. commentary to have on I second

on just understand, caused pricing that Glad, was front, maybe help the your it pricing just last -- shelf. time So us at volatility happened on

have that some you're you of to to of promotions competitors that that getting are are how the you. you be talk won't mention that And ahead then I lower going you pricing. happen again related net just this part Can to did moving a pricing time? Now confidence think

low think that's I level. promos are you said. at a what But already pretty

Thanks. so do promo -- I second you your you Glad and framework peers? prices of you're the into anticipate hear fiscal that get think there But can well general right a source just we rest until pricing then going I I is, levels And below risk a the pricing that question. in have portfolio actually just And a did just promotional then implying that list And of basically be the at follow-up. maybe 'XX? have not looking yet

Linda Rendle

Thanks Chris. I'll start.

in this in perspective in strength of Glad. have in confidence take that and our we to right turned advertising, ability of give brands and and the confidence continue terms what we brands to the So us of incremental is how time, pricing. investment put during inclusive have absolutely to innovation our that our put And all from now an we in, consumers

what pretty is really we everyone experiencing. saw this is throughout what the we're seeing time systemic think I versus and broader time what also that last environment is industry inflationary a

like move categories So mentioned, competitors you as in we've Glad. seen

particular, July. already up and Glad in the I think even we've volatility have with increase resin But pricing that additional at in that's price looking just given in we come the take seen. we're based I'll market, the in effective are on seeing Glad we will increases highlight we what

this guide the So are you away should is we not go right What are again doing increases. you that We want term hear brands let all be on as that do the of do be long looking we at the a we're the -- company at the at we want other moment, pressures But to that in way we we're looking take that to at across that not annually cost price seeing our needs -- to right Glad. now for but mid on resin is look I brands We're But us to to faster extraordinary what this first to with position. holistic. helping that us. understand that. circumstances

savings. us not. every business cost is price to some will increases, And what So will those you'll apply include others hear

get but entire And with every of perspective, an on growth we increases can margin on period strong lap I promotion system we'll QX, how in lower a to growth. pre-pandemic the as levels. it's promotion. our out the we're although bunch is working about evaluating accretive plans we a state of but you them. about and discounting normalized still it's there's that we're it think what growth have And was working well we're category innovation think portfolio. to deep from accelerated plans. us still trying hear in think do price And where less targeted to of You'll as And on-shelf a growth retailer incentive on, we're again question, across And very put a be versus business, and more lapping little across very below

behind to thinking all the promotions of into lean lower that we're a consumers tailwinds. environment, is lap. have that's could strong So in them environment. context promotional And the growth sure to and And we want how continue that invest make the that about we mean that course, of lower to we the

as that as trial the using can sentiment watching closely overall it's to intended be, and drive we and category. us what for But keeping will it the for get to to promotion rational consumers would on we're keep it depend and So curious. again

Chris Carey

about time of just, last whether certainly points the you the to forward? basis also several pricing heard in there our the think surprised area just the model is lot but a Can underlying Thank sequential think decline staples companies mean signing. this to the I appreciate framework this accounted a a Like basis. a and you're I sort that if little second one that there's of on quarter. is partnerships we've was we've gross in -- for just close that. a cycle other these Maybe also for hundred business, professional margin. to a relative cyclicality loop, And this commodity realistic to on came quarter there you certainly I was I just seen international light then to from was comment which go And of guess question all about bit the what relative

outlook. question your the can be maybe so I to businesses confidence X% the just underlying think longer is X% to two And term contributors growth that these

takes puts bigger give drivers maybe businesses Just Thanks so you be saw which can going confidence forward? all that. this and much growth any those quarter that that for you

Kevin Jacobsen

said Linda looking will to at we're as levers increases different the offset XXXX. well. turn to seeing. start the we're those I'll we're in for And plans maybe work of to certainly it of I'll going us our a how a transportation start of your right in levers to providing but Chris be as going be now Pricing one it's to you first middle and pricing, well. for terms of others year over to early looking We're and at tell impact in fiscal I'd perspective. question number building commodity Linda On number we'll regard Hey Sure. too be cost the right of as of

regard one a that you down. as with volume as on we was have get may So, further you plans update just International perspective of to seen we'll In August. in International our along

to on I the cleaning think disinfecting now. in added Lisa very of and continue wipes it's feel we we're we're noting good expand making mentioned into countries worth her our we and remarks, prepared as work. progress number And countries the introducing about we've XX

Canada. one in Specifically, though in had the was third we the quarter, challenges of

now the market know different may our you're for if in saw growth in in you we deemed Canadian pretty it's that And broadly a US, their tracking are While across portfolio non-essential. little Canada lockdowns third lockdown. than their region, items the that in and are they

outlet, in blocked can't are many shop a aisles them. you into off where go cases, those retail you If

example an saw of significant business. cleaning our disinfecting quarter so And other business parts third and we pretty declines in in but grew as our we in Canada,

over Our Brita business XX%. was down

able Our to down a consumers because aisles. amount shop Burt's also is by Bees similar not business are those

announced right through lockdown they've the Now, May XXth. now goes

our large, rebound. we as our progress professional a move get cleaning talk we about feel will businesses and very we little on expect quarter. as of and disinfecting our And But those Linda So about fourth that then bit effect will we out by has lockdown, some the that good into But knock-on portfolio internationally. business.

Linda Rendle

Yes.

because you this, very unique really think heavily is our And part it about of with is really think portfolio comparison to it mobility. has I do professional if period. a the tied to

down side in takeaway saw businesses we -- So, point hadn't open. three, the retail part consumer quarter last were in shut most the the by though for businesses even that

spaces are is long innovation many And benefits again. they partnerships have those out-of-home that for growth we're to is have their suite in we conviction including on to see know clean. and And to of four reassurance top businesses so and opportunities, to the and is new the So, strongly strong of in they're new we single-digits that them expand can I a to disinfected businesses really recall for just not the just it We This been strong you we years. our the continue to trends new industry. impact. so both And professional But the company It's electrostatic that's most brought new space this same so you established The before had term. in forms bring continue of we've get expanding offering an sprayer And comes the and high when as business clean to want back this X% lap. up guests back that of continue you coming to trends branded two-year need cleaning to we business growing very and the space ours, this about that too businesses terrific by very a about with to that these chemistries. to about ones provide reality growth a consumers we The closed. if Clorox very growing had XX% that but strong broadly and have in across we've space, we think continue. contrast on if not years. period look professional. new quarter remain in step And comparison broader years had seeing to The that the on excited on. a take continue mid-single business a stack that have partners quarter

term, long a lot the our So no business. noise really about of in future. to good of for encountered, short of the term professional There's feel this change have outlook the spaces as out the most there but

Chris Carey

Well for all thanks. you Okay. that. Thank it. both Appreciate

Operator

you. Thank

Capital Modi Nik RBC Our of next from is question Markets.

Nik Modi

everyone. Hi, Yeah.

can two on I vectors growth. was something think Linda, to address just category you So disinfecting hoping about on wipes,

is So rate buy data than disinfecting consumers unvaccinated faster suggest I that look at vaccinated shopper dropping that numerators consumer. vaccinated wipes

back thoughts can what's make And just been complex was I supply around would and you secondly then So about longer place? you it can the supply-related problem going So to support, where market some I that. exists? share the basket at -- that case provide like loyalty any this be brand get a space retailers or helpful. mean, feel the marketing around is to hope no thoughts that point you to a I issue, be size on given has mean

Linda Rendle

Sure Nik.

behavior as experience became vaccinated people continue did to we really changes that behavior strong But disinfecting, with changing. from And starting we see Just anticipate curve did to move is slightly. consumers. up see we

little got people vaccinated, frankly, than as And a vaccines we happened it earlier anticipated. just So earlier. happened had

normal. that's So

for that forward. feel in continue in disinfecting levels to significantly cleaning And cleaning to our forward. moving X% that expect future. buying -- We the prepandemic behaviors expected growth is X% areas these to to rate to into go about their the continue we growth ability and But we're us as get to and from versus consumers. elevated. seeing we key We're are our habits confident them And that to be hearing still takeaway

market disinfecting. really and be the be quarter grow is did more mid- that issues, to Not related primarily clear, that but think with really And the about I just has, our And last as the do have it of and ability the we long three. the does it to of et to that in course we that included impacted depletion risk want period term. across supply talked driven we are cetera, we very, only to to share. it's This very we Whether the happy. our inventory more share, nodes particularly want as it supply, comes goal particularly supply really expand to more all that over not the it cleaning a the system strong lap have our introduces. weather-related that chain, we --

good from to months. businesses the progress substantial optimistic. As including And on next we're consumers improvement what in wipes in four are be We've we forward by we look to plan of anticipate And supply than the Clorox the better in see. what going already cleaning in is made then the we QX. and they're shelf stock to they've They're our though, the experiencing is end most something of And by months to that. we anticipate Cleaning fully QX. stock to good experienced business premium for end being and across which finding

also are a starting continue. And market at that started start again. of prior them that. the pause. to moving we it sprays we that that had to help, supply and on they the And are is business So expect of distribution pandemic going other disinfecting to floor suite we that other is about. we'd be reintroducing And some large have us forward, still And includes the on a supply and that we things to to right of then, platform wipes pandemic, that also like again. things expanding had pandemic. share to are to comes we excited that some thing but constrained. ship the our a Scentiva we're prior items the going was the really had Compostable includes we When know for market back in And beginning innovation. innovation put expect retailers to broad are in strong terrific quarter mopping four that growth

off we're of to to our already million then cleaner, towel and over a the that's electrostatic Clorox new space all-purpose business, launching forms launching addition, brand-new chemistries new market. the sales and In brand-new and wipes, $XXX of paper kind including building brand-new in innovations, non-bleach at

really that's working we're of innovation well. So, suite growing and category. on what resonated we're on and with great a innovation that's And retailers that the focused

Nik Modi

And That's vitamins. I very one real one if quick helpful. could on -- just just

backdrop of that of you You of around plan would going have what talked overarching just given Can seems kind fortunes than to everyone's Because much to to exactly on been it terms have place. the it of you pre-pandemic is about you like the business? of be do self-care. industry plans kind turn self-health and focus look specific in better that in

So any strategy be specifics helpful. around would the

Linda Rendle

then to planning we're think that as talk don't bit too? why Nik, to of would be give background backdrop. helpful I I a little just about do Yes. what a

grow bought As very we Kevin small mentioned ago. bunch three These natural small five to in the brands we channel. his brands And years remarks, strong a low-double-digit of two then through were in acquisitions, fast-growing underperformance synergies. we're expected them a consistent category, high-single-digits broader related to we growth, time to The to that is what to with what getting and shorter in course, of seeing bought.

amount et that brands a given get weighted also entered people in forms, there. and negative headwinds and space. probiotics heavily channel have retail component just and consolidation. at And realize very that. competition seeing plus pandemic longer and then been down food, the attractive we as a time It higher we big been we to Natural X% have slowed the of has to fragmented. bought, the more it's what in cetera, category of the we're of massive investment people And been in that accelerated certainly from size So went time other at We're that's who've X%. given given bought the launching then, going that in headwind to take only it a probiotics

a we conviction are care future? and consumer to of tailwinds the of and category take People Those wellness, from part continuing to the and we with the see supplements the It to do that very really we do what in their strong. So, health are have remain that good starts the things do perspective. strength fact that. absolutely and of looking vitamins

future. is at category what really we about that, feel we I first the detail give in the talk that. you up strategy But what coming level and sure right more have knowledge high with we'll great can So the on about and welcome in focused a that we're I'll about making talking

that We new of we how talent have and has it. of We've how in a better to those category with a works understanding industry lot the operate that. hired need this and portfolio brands particularly space win forward. and our in refreshed experience and And brands they've helped moving how to around on get we strategy, with we've us clear our those small

And accretive, so with that, built on do think we get accretive and to type us and for on to but get slow We company to these take delivering what as fully details we've they're I ramp-up share company. long-term. know because growth more Nik do be place in and brands period you a a to probably as it's to want to of able we'll that that, time the expect plan over But more that, have profit a sales we to to about going some where later.

Nik Modi

Excellent. Linda. Thank you,

Linda Rendle

Thanks, Nik.

Operator

Thank you.

Your from of Andrea is JPMorgan. next Teixeira question

Andrea Teixeira

that's any you Linda, this understand. consideration Glad you -- to what chain far pricing? the pricing also the be can also because taking on normalized six at it comment, don't work having the coming expect the end products and of to brands by took hopefully that be we categories competitor calendar now about commentary I to the assuming that commodities these price had still categories you think to that be taking only cleaning that we you your curious through? -- cost the But about strategy And have answer. Thank as on high this you. recover like so are across flow so by come the fully to I transportation take do that I'm as the the So segments? pressures one but the before opportunistic. benefit mark And know would some and second is your from the -- pricing you think months capacity come pandemic, and share? that from that now professional large point. before fiscal to rates, some bag I'm appreciate having will recover shelf professional when actually everything will as and to on business from by being as know cleaning other that want quarter, impacted through Is of to middle share do when And considered that that's XXXX and of the understood knowing just international other the we normalized? as supply across vaccination time other and of see I strong in should the also that you I are you

Linda Rendle

question those and I'll the Thanks. start turn Glad in you that pricing we'll had. take with

we given March resin And I effective said that with they action don't retailers and And that contemplating just be and the we previously, pass would and to round that. But have Glad. on increase the in prices on take looking want then that on as So July we it And we'll that inflation we're see it the an effective price on news we're still to in do trade be we to continued we announced are at July. seeing though as additional change announced through. timing share will will will shelf in that.

have As different category They different them. do have relates plans. has it with the plans. businesses comment These that broader different on your is promotional timing. seasonal to They it have to specific and innovation pricing to aspects really

category does And that of And of Glad resin. also right But some we'll to we'd are of take any that but our US we're as places take category. take are to same. on up on separate. that in it we're as timing question chain, is of we doing given we're with year. on We're this that any recover cleaning to we we be on share could do additional deliver our every they to retail. small to we're supply is going pricing plus and expected there with course, But want other would cost what has And don't shared those looking to you track across cost all on looking And back. also what at course, plan. for savings pleased the more the away you now I absolutely and be every international from retail target savings our what the have of broader a -- then I but we have that news I your innovation on that categories, Glad just news it's supply seeing chain then so and And we we're on at and largely action be same at away it as this but timing are experiencing, on dynamics portion we at But it. the have across want professional to share more want businesses. to those they are business, looking will point components has completely category-by-category really doing We have

in point I international that we're given particularly at Although, our supply not the a a businesses chain, vast constrained majority International dedicated chain. would with we're say this because dedicated that supply have at wipes we of of point

Andrea Teixeira

And you XX mentioned is think or I growth fruit. wipes got other the the now any low-hanging already. Lisah mentioned there countries countries? places, I anticipation say, I into Is of obviously which additional any or right up ramp think accelerating like you'd the

things offer growth? may or other I'm sprays to them the accelerate actually that international Now going

Linda Rendle

Yes.

cleaning accelerate more at that growth to, from behind global and growth, consumers like do about strengthening of range, we CAGNY our the can help against able brand, sprays, is that that anticipate profitable would we goal brand. to include we to a we our broadly to that of And have, X% stronger wipes we an the that be, get X% Clorox world. really innovation As to the the across idea would but mentioned think which we And And serve spoke to can we like set products sales that had portfolio, course, that. long-term important but around really Clorox cleaning be part is across looking building things you international. of start

Clorox as can right at markets, So we we the markets innovation behind the those leverage what our to exactly brand. what's we're lineup and looking in enter that's expand presence where product

Andrea Teixeira

useful. Very you. Thank pass on. I’ll it

Operator

you. Thank

Credit Kaumil Suisse. from Your with next Gajrawala question is

Kaumil Gajrawala

maybe suggests across Good are the structural an degree, pretty morning the taken? of change From lot you consumer elasticity be suppose. risk there's things? it about perspective, is pricing got about afternoon, if what use an much the can you've you take for But board. about is there's elasticity, you pricing I that research A that worried – changes inflation perfect and to an what home. cost have you perspective too know do I for the the sense or a pricing products are quite to how in a that obviously, a of a there's everybody. and and intent makes Good trend, breaking and like guys, through home to you view it. of coming may thinking Hi. opportunity question at of careful strong feel be on To lost from cover

Linda Rendle

ability look we by brand course we take of to always measure, because brands the value the is strength and on that that. our always I'll by deliver products. how of When consumer focus our a mix start. composed that the at we of at category value strength trying looking It's value function consumers product of competitive of that of our optimize is comprised look as that forms And triangle for to to we're that pricing, that say, experience we're we sub-segment brands, versus And the the strength at have. to and is people course, well. of determine of as consumer that the what right right to and pricing the

take that it. into think about we So account as we

brand keep that of invest over was brands implies, have them innovation it Given And we price. program, take ability and leaned that, our we've your than time was of that year, is, and measuring we've to when since questions that behind consumer strength XX% as strength And the began one strengthen in our the the equity that lot long-term. ever had to spend building as about would we've already? have the why a we during a this people brands you it want value we fact strong of higher our they brands got

have take and So them to. demand of that as pricing we ability as introduce course to we new to it, need they products,

as time willingness taking through, account. that absolutely shown all their also keep long-term of that at into that and trends regardless a of these having to to start to say, around we're consumers in cleaning, drinking eat So cetera. meal here they whether pricing, they've during to stay. in grills, And invested of Consumers well have seen I pay would behaviors experiences. home, and safe themselves behaviors consumer water et are more we've be behavior. this invested lots They've

where do seeing, good really we're but take trends the about feel which price to to advantage our to recover of both, it's we So ability that continue is appropriate also margin.

Kaumil Gajrawala

Thank Great. Okay. you.

Operator

Thank you.

Bank. Your next question with is Deutsche Powers from Steve

Steve Powers

Thanks. Hey guys. A couple questions me. of for

you're then, plus quarters. or And Health new $XXX out do to trying came Just is Does down and it do the this I'm back several million the go $XXX You've about segment that And middle? -- segment kind running of first I'm thinking the think sense, in average level factoring Wellness about as The the in think consumption I obviously improved level think likely the in been new somewhere this as you sales the we is million. be of what one how you and of to last the base? think just, are the trying bounce rate pandemic, run is consumption? seeing your absolute to gauge, normal for what below meet just quarter normal the as of of you forward. as you we as envisioning the guys coming well as supply, ability guess to new that

Linda Rendle

Sure.

seen if think, the we're maybe talk and you base. if this really we've back what about seeing in you a I I how -- the past from past. operating look what we're strong a and was I'll because, overall -- I'm think take step clear not sure, in

cleaning mid-single in and step look a for of business a business, back were was that cleaning bottom prepandemic number a for retail take and our We you growing the strength both If us. retail at of topline years. place in line digits

was mid-single if look that five-year the So you CAGR digits. prepandemic, at

of we were that. we place strength. see we starting that we the of So continuing from off and move to see as And -- a building future

all what going anticipating, we big that the play above are to think move it company that changed. as investing that about, thinking really Clorox we've we're we of be long be been And a you and this during a from that we've investment brand, role to where an have So but because given fact then tailwinds forward again, those we is gives going it's innovation things. working, as solid consumer And place behavior the is think idea a consumer needs we combine it's will of pretty if increased average where in what pandemic. perspective, we're the

Steve Powers

Okay.

The quarter guess your can work -- with to basis think I correct. contraction I gears point margin. I that. fourth the in for something XXX guess I the Okay. what if shifting my point math here. depth two a basis are XXX-plus things of is gross fourth like there is guidance quarter implies

in first then or claw of getting you're level recovery, you something this. can just you it pricing are the gauge urgency about -- -- I'm clear. is that the question You a part margin But -- with if back be just Obviously, and it's satisfied think I not. is guess, I trying back. do as you coming looking you But that's the would back. size made one urgency sense taking in number to what sense B, that trying this half your elongated your you're pricing building correct elsewhere guess what A, me of of path more of to contraction of Glad, of we second of to Glad gauge 'XX? at of kind I'm as eager I

Kevin Jacobsen

for full question. be to with you our don't things. quarterly down. guidance Yes, is gross Steve, expect thanks said for provide On as the we year Two but QX, I the what can we we margin share

For would me year is degree. about mentioned it full be to And back we lesser expectation in on February as my XXX the basis. that's likely bps down a

had back is us. a we've for the what's changed in of we storm about When the It's half back challenging in us for previous transportation while resin ice I the continues XXX driven really saw biggest really be headwind commodities call, February, impact from that market during As anticipated we in our year. highlighted back earnings February. the had talked to by really bps

bps going I saw bps the we provided think closer to that's to you in And our XXX in QX now about QX. attachments be in in half. back XXX

I it be and some in think it And 'XX QX. think we'll peak start I fiscal will of higher half probably softening. front see will then the year to in

And play recovery, near-term. And longer-term to it's just think going the question that's it. out Linda this margin year so then how in on your I mentioned

EBIT growing XX to to committed the are XX We over bps margins long-term.

recover about actions areas helpful. these bps to comment the that and in cost but in end gross aggressively of that, it Steve last is XXX savings that And as so now goal. increases, And into work to of one to leaning as we're going other we're margin. well. element to being going relates the We'll as to pricing cost continue about we're be towards that the were year margin. stack If part talking performance on two-year that's we're XXXX I where a before perspective, at our if fiscal a financial And we many recovering work of likely basis about you broader be year provide pandemic in where maybe might then this think a increase

quarter XXX our quarter. this certainly the earlier, the sales long-term delivering be challenged two as a X% years. next half year expanding the earnings and then And is last margins by the I to margins. so delivering We're we take time of over we we'll growth. goal fiscal said the back company to X% If we've We're growth. get I are of improved bps And view about XXXX,

you some and XXXX. back to this move necessary we're profit long-term perspective our environment on half to taking of through quickly gives but the sales sure goals on our track for challenging us make that hopefully in put So desire the actions

Steve Powers

build impactful announced like about the move think I specified I And GAAP in Is to not to price exactly that. $X.XX intention your just in adjusted That as be No think for actions moving helpful. Glad we something should -- for different squeeze you adjusted, your for an And to XXXX we is? on about guess how that EPS in that fiscal you and up across amortization or I could the sizing there's moving a don't year? is did back I would guidance planned July? quantification I you. you have any charge then on this back does. there's a fiscal it think an appreciate the and there it. increase that Clorox the sounds If is for beyond to -- guess, you $X.XX offer Thank to could to XXXX. quantification GAAP, layering like it $X.XX number. adjusted fiscal in XXXX that is portfolio,

Kevin Jacobsen

Yeah. Thanks Steve.

mid-single an as it tell I'd we'll on On effect questions action necessary. Glad, actions then that pricing And to evaluate additional introduced are digits the Linda we you EPS July. said, And take you in for both as our two will adjusted said the on think would low if on noncash had And, thought would Steve, as intent the time reported we we this large two but investors a quarter. provide we help adjusted as this first also really GAAP help now. thought charges is we've basis,

impairment. VMS have gain the have the our in Saudi and We acquisition QX from we

you you're additional use able think a have to one-time charge one-time of XXXX, operational continue to year. perspective allows to fiscal year better have so as we go And that helpful. gain this we performance this into giving you is or particularly adjusted past look And our understanding as

us use going forward. expect should you that So to

Steve Powers

much. Thank so Okay. you

Kevin Jacobsen

Thanks Steve.

Operator

Thank you.

is Our Lieberman of Barclays. from next question Lauren

Lauren Lieberman

valuation has fourth versus a to Difficulty] pride I'm offset full and just that remember And when bar last we for JV by high introduced I gain, about to been it impairment in the I now you over looking adjusted, and asking But the is I as really switch reporter FX a in at talked quarter tax right arguably XXXX would growth I including -- company very, you also the hold if back time. and this that get because mean But something to And [Technical you could one-off. point contributed yourselves you're big the argue be adjusted guidance growth. fiscal the earnings year being GAAP being charge know when rates. year's that's to. a of the very specifically stock us to

struggling really to that there's we with believe really going with if and positive It's of you need with games. be I'm So being business. playing so much ask, on particularly the comfortable shouldn't kind constructive these that

I'd on really love So Kevin, just decision. that perspective further

Kevin Jacobsen

games think playing I that Lauren, agree Yes. We perspective. with characterization. helpful that's wouldn't additional

to to basis we an are insightful GAAP will we numbers provide estimate for think a and So continue be helpful provide as investors. reported clear, estimate adjusted we'll both and And well. again,

investors and a to large there's a make a our To clearly as We point, our QX Lauren, to can gain We investors in sure sure have on large in that as possible. can operationally. very we going want lot want charge QX. understand make performance. understand We operational your help

helpful. our setting business. those think It insight will two to we is items So another be aside,

use So we'll to why introduced 'XX. going it continue forward in and that's we why it

So our two I at you on clearly more performance these can as our versus really think 'XX we year-over-year. performance, evaluate operational an look understand performance and that basis items XXXX our excluding

Lauren Lieberman

share cleaners that looks we If pre-pandemic this did it your category. I down considerably, Okay. And back just strong spray in that gains in one that. Nielsen Thanks. with when but That question But shares And wipes cleaning is looked your shares. year, at shares in market in measure is just in does is I Nielsen, pretty e-commerce not more follow-up something. and look were the I from like perfect is your Nielsen quick time. want I know down. down particularly spray helpful to club on And and then particularly perspective appreciate far and the you've very over made

at Because So have invested the dynamics, not out hole a just cleaning again Thanks. you whether some to share that in maybe been perspective there's pandemic knowing channel there's dig a on I whether been not or a there the could to or prioritization really historically? would bit to of looking more that's Nielsen feels of more it's there's me imprecise some and supply it related like just during on constraints. and not like in further proactive hindsight sense

Linda Rendle

and question for it's I'll the provide Lauren, and one complex. what Maybe would take that try just I on step cleaning then Hey, get really get And Thanks a months some clarity now, again normalized clear to one this back what how see the on as pre-pandemic, which we coming what state. this and because to more seeing this know one. a help over think we out to taking drove we're on in not satisfied we're we years with. playing we we experienced

picture, big growth. at for strong that, been a retail a and we strength earlier us. cleaning our it's back So we business, of great area if first had actually mentioned step look I little

of look XXXX. that that in five-year CAGR an the bottom we fiscal grew business points two So if through you line. top year both And digits corresponded and pre-pandemic, at to mid-single 'XX increase overall share care from home

trying We had that been We in. on So focus that really innovation. been investing was a strong Clorox we've the expand to brand. had something

Scentiva of done have We We during a launched improvements time. that on our had range broad portfolio.

strength a area for of been nice it's So us.

is dive I and sprays And an get into individual as downs. which said are think there incredibly is you complex you to do the you Lauren, fragmented segments, what ups category.

segments it about be the of business that spray which have point in we our while And business. channels, lot weren't. strong track is other strong we of XX% outside a very we in of winning ones in, are we to true were that a particular your So could

aggregate. So in --

advertising wipes mentioned mop year, innovations ramped is another Scentiva, in promotion a in compostable a created are much way Clorox think floor broadly individual the that those Clorox them Care. towel in; we're why behind that are going costs, ramp Home why in repeating; incremental increased worth as continue in company spending. perspective. highlighted. new were some to that brand-new million And on year from of this a to Clorox It's to are across innovation. sprays and that's really and back so to years a category look $XXX for strength then and aren't we having the us going we we to this I with strong to be pandemic new paper disinfecting done sales walked up reintroducing we've the offerings as One, compete invested business of -- like lot ago partnership. we've this And spend which first We're number us well brand. winning bleach electrostatic that on in and of always elements but expanding overall, our against future to resonate, nothing the up. feel There's track as wipes that a So work we shelf; I But you into I a we segments the for from as

on back terrific Clorox metric get our Lauren to where laser-focused So the not I investing we us have continue with we're we continues, supply of issue. growth place in we is again None ability needs. behind to consumer the I feel in to but which of the that feel what innovation brand. am majority that are, But about confident happy consumer into share-wise. value and meet share are as

Lauren Lieberman

I Linda, appreciate thanks. really Okay. that.

Linda Rendle

Thanks, Lauren.

Operator

Thank you.

from of next Kevin question Our Jefferies. is Grundy

Linda Rendle

Kevin?

Kevin Grundy

-- back so year. the and advertising of XX% half outlook for XX% including in sales, A bit. your specifically marketing still But now of the

as both well is as of are highs a decade. I are back this I those as aware historical have going far guys think you

just, is confidence So basis, historical a sure comment of then far. And as not, a understanding up in been which et in have a full share a comes on it the going at to year very just that? That's sort ROI was lot X% permanently would it around spend marketing the consumption, X% a longer but a given around place maybe not tying basis of address, was answer you it of that possible to maybe this thought a one can the And sales. a lot suspect exists behind to Is number? commodity six-month would cetera. on given I back that problem principle not about your And be here probably levels. trying market advertising market you're then on and supply-chain move lot hope that of I'm in share, pulling of limb. out higher? the of, much term any but better context of, We with the is sort back all is constraints XX% The don't back go there right have discussion P&L. on the the costs comes this volatility in and be

of that satisfied spoken sort So of in is be be not like that not maybe I because some share which whether it this you you. anything feel I incremental, helpful? But and a market comments going be vacuum. decision a on to to lot you're suspect making in It's where you're with belabor feel but would it. we've Thank there would

Linda Rendle

consumer them that Sure, forward. enter fact create base and to we for Kevin. on to XX% that needed the and given we the people everybody, right different new this role something a we're solutions also many advertising information had play had loyal as in for trying a such year seeing And solve. wanted lot give conviction moving they we was to so people time wanted passion during that brands. product And innovation but them a challenges of give our that. And important really

into to year trial. think double the goal we was previous So conversations XX% from as innovation people have that spend we are and And for highlighted this a track to strong on probably new And and to spend coming loyalty of spent here on you'll product year, our those in new I create and welcome we've launched. we advertising behind the amount recall that experiences innovations that up you QX. is this

we and And why before and information be perspective. continue comment As and strong ROI that we're to getting tracking that's translate a I I look is move spend, it something we we me That's and can what on into seeing from forward. ROI, results consumer-metric forward very on. the -- real-time continues we're insights say to let and say

incredibly to have continue So penetration. high household

have across We're household of gains We our number loyalty seeing categories. a strengthen. penetration

We're rates often. larger users growing, more So retention new both users. quantities seeing repeat buying and core rates on consumers growing

not that to those the about just drives, to to us brand, seeing advertising the strong of but the long-term talk only that attribute to health all metrics that we're the show ROI that things metrics So of we would important consumer the are loyalty. increase

to be exactly number that continue highlighted innovation our is in of we have have. As what to XXXX we like. communicate give X% X% And us help we'll committed should heard and we'll brands. the our But our that move on you investing we're exact the we'll whether XX% us optimize in is I continued term. as long number forward, a is what we to But you perspective to it And prescribed level say for can you beyond, hear you looks we a shares, from like a market right programs get depending continue don't commitment XX%. what depending invest what to on we strong will update to brands. – over our But advertising and lever to spending as

Kevin Grundy

good Thanks luck. good. and Very

Linda Rendle

Thank you.

Operator

English it And disconnected. Jason appears Sachs. And from final question of Goldman line his your comes

Linda Rendle

Jason one more time. operator? No? He's not there at all,

Operator

His line disconnected.

Linda Rendle

the That's question? final Okay.

Operator

Yes.

Linda Rendle

our again Thanks next on All right. then, good. speaking please Until call Very you everyone. We again, to well. look in stay August. to forward

Operator

This you. today's does conference call. conclude Thank

You disconnect. may now

The Clorox Company (CLX) 30 Apr 212021 Q3 Earnings call transcript