The Clorox Company (CLX) 30 Oct 242025 Q1 Earnings call transcript

Company Profile

Participants

Lisah Burhan	executive
Linda Rendle	executive
Dara Mohsenian	analyst
Peter Grom	analyst
Kevin Jacobsen	executive
Filippo Falorni	analyst
Andrea Teixeira	analyst
Anna Lizzul	analyst
Bonnie Herzog	analyst
Robert Moskow	analyst
Olivia Tong Cheang	analyst
Kaumil Gajrawala	analyst
Lauren Lieberman	analyst
Christopher Carey	analyst
Javier Escalante Manzo	analyst
Stephen Robert Powers	analyst
Kevin Grundy	analyst

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to The Clorox Company Quarterly and Fiscal Year Earnings Release Conference Call. [Operator Instructions]

As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Ms. Lisah Burhan, Vice President of Investor Relations for The Clorox Company. Ms. your begin may you conference. Burhan,

Lisah Burhan

Good Thank joining thank for and you, Jen. us. you afternoon,

your call then are are Linda I few On Chair me remarks, a review with the today moment, and release our we'll and had chance comments, questions. prepared Jacobsen, opening website. our has just earnings and of Linda a Kevin our on everyone will CFO. which take share hope both a and to available CEO; our Rendle, In

During on call, forward-looking differ including expectations this outcomes. may we statements, These may or about make outlook. XXXX statements our from but management's fiscal actual results are based current

In we measures. refer financial non-GAAP addition, to may certain

such SEC. to filed statements Please the forward-looking various section, which forward-looking factors have with identifies been affect the refer which statements, any that could

of addition, of refer please our Investor release and information the in comparable GAAP website supplemental financial our Relations the for financial earnings measures. non-GAAP the In schedule reconciliation measures financial to non-GAAP the most section directly section of to a

turn it over I'll Linda. to Now

Linda Rendle

Hello, us you joining today. for Thank everyone.

strong. of results the XXXX we restored Our strength. cyber distribution fully entered vast position of Taking in from were a operational Having step first supply, the and fiscal market quarter share XXXX majority back, a attack. August

we our against and results progress above delivered value. drove fully restored while in categories our to overall long-term as make quarter, further This we share our progress of market share most grew strategy continuing expectations

our consecutive quarter of Importantly, expansion. commitment rebuild eighth to our gross we to continue deliver margin, on margin achieving

pre-pandemic business. on investing fuel to track continue fiscal year our remain while margin we management gross capabilities growth, this ability holistic our Our margins enhance to return to in and to

over business which more marks volatility of important follows milestone growth evolution the completed time. our goal and quarter. and of portfolio, sale in to supports consistent during also and This We of another drive our Argentina our business reduce development the the profitable previous our the VMS

Looking consumers Within an and uncertain macro of years, complexity see where seek strong ahead, value. context portfolio we has this in recent environment in categories pressure the under our resilient. to and brands the trusted remain and continue everyday essential to remained continue of

time delivering to we continuing brands matters most, and a superior invest during to the when value in on to consumers market. focused are So innovation and win in it our

laser-focused in We a have progress our transformation that's company remain growth. positioned strong leaner to take more and be we're and well Kevin good we resilient in consistent a actions, I to on fundamentals and that, company. building your Through faster consumer and place, deliver more these will questions. profitable stronger advancing making obsessed, and With

Operator

[Operator come Rendle. Our from first Mohsenian. Ms. Instructions] you, Dara question Thank will

Dara Mohsenian

touch market I share. So just on to wanted

from can You you you're your not share -- out share? key of you half terms are guys back drivers talk short-term the restored so behind much the and mentioned the expand how that the market share from year, look and have and I'm do maybe drive assuming share performance potential in growth? assuming here think it? talk And as you Maybe what year, if consistently of you you about then long-term the volume on of in of there the in guessing specifically, fully half could thoughts release you you here, some back there clarity that? market some about

Linda Rendle

that disruption almost saw the growth began QX. indeed growth note Maybe we in our in important overall that. I'll the cover as just its of don't pre-cyber return before levels, one with and share to categories. starting to it's We cyber we lapping Dara. our every I performance market Sure, did that, well. came think

perspective, also coming was private peak market So seeing been quarters really they not the normalized significant We're share we a previous of before label when saw what in private lab. where that cyber. label we share period share started during out in has the change a in up overall just our from grew

share only same look categories. in at you the of two the share this attack. you aggregate, grew in grew actually if those we we versus our if also So and quarter before look compared And categories down levels at they they're had quarter pre-cyber to

we've health brands trade generally share in great I position we about line promotion would covered. promotion we and say thought and what to were see. So more the going in to feel ensure where invested we sales of our our is advertising both that that's with we obviously, have

growth in share our expectations. that was So this we line with quarter experienced the

to forward, Moving a we've a continue in now. smaller seen, lap right given period probably at albeit share, than we're we grow would expect to level

share throughout we be growth growth But share expect end do solid the lumpy gains. to year that the So fiscal and market will year. share overall with

Dara Mohsenian

Okay. and maybe can perspective seeing business terms of some different segments you're there? the that, And seeing within the promotional in industry you out parse what what about from environment talk of you're in a

Linda Rendle

Yes.

levels pre-COVID back year to slightly we're restore we our than And little a category reestablish Our lot I is work view merchandising that, litter. that different pre-COVID what -- and in levels. higher. the share. as back as temporary this get that dynamics below. to Maybe we and are driving I of fair, some be would ahead our being pre others. that's seen. We over regular we though, about be say one talked that we've assumption to significantly of we for would with exactly probably And some would that are a to litters as say levels would those that the promo would return variance was and business consumers, think we've promotional biggest that categories cyber versus are time,

generally we're different litter, or returning one But levels, to average, expected it on little overall, a the call pre-COVID anything other. that materially is category bit I But each seeing other way we line again, what with in different. than wouldn't

Operator

And our with next Peter question Grom will come UBS. from

Peter Grom

what there. I'm out of on trying of respective the quarter. follow-up around talking questioning lot to some guidance. phasing kind ask coming of the that just Obviously, better, wanted and the getting a of second of line of XQ growth, is your of the seeing just sales Dara's we're given kind what of category organic from many are them about sales I understand below weaker peers algorithms. guess delivering to I

back seems [indiscernible] guidance to Your year. kind of growth the in still of half the

your of for just just environment? of year curious given half growth in back all to current as the So whether expectations evolved the have at the kind organic

Kevin Jacobsen

Peter, this is Kevin. Yes. take that one. to Happy

to good phasing obviously, growth. And the year sales. to you we solid folks XX% organic the with relates start it as saw, of had As a

thought our I QX going in in of in think probably some have remarks, forward saw adjusted that pulling performance you QX. we ship volume as we prepared a was to was QX bit

front some if So teens. there. middle that is you in algorithm. outlook you growing low so X% consider or year year, we're take right would And the the if what X% made of long-term we full the suggest back year, with you're for our that so now probably And expecting the adjustment in of in the back then to half that line probably QX down half, the of our be to half in the X%

we X%. remember, at of to growth. And in are question of flat Peter, well. for That business quite and is Also August those about international, called that professional to that perform be in the sort supporting XX% to keep your our continues our mind, expectation. Clorox slow X% continue to expected back to that's drivers what we our that getting kind think categories other you of I though, are X% businesses

to grow businesses the to We in digits. those continue expect mid-single

nice just benefit good up certainly and business Linda QX, also then a strength benefit in and got program well. earlier, line but in the innovation lined So of full demand sold benefit referring as fully for our to QX VMS starting got overall to And got late back the was half are the they plans. divestitures. certainly growth. strong as quarter, we our that didn't contributors get We've top We've marketing We the of support. because in we that back the just to our you'll half, see the the will structural our

the a exit on quite in get how to fiscal rate that's of X% got bit we'll we is like to focused you I think point X% important continue folks so head a drivers we forward. delivering overall, but I about X% the So move to X%. deliver spending time plan know X% can think as this good think And we're I ensuring sure to of as really good feel I place we we're year us we've the because make very that to about we're to we 'XX that into year, only not X%

Peter Grom

follow-up quick margin. a maybe Great. And then just gross on

related So absorption Was are came your kind drivers to ahead to fixed the the there just of Or quarter? related that cost better shipments? of the well it entirely led first the guidance. to in other quarter, upside in the that

Kevin Jacobsen

the was the really much everything than line elements expectations by absorbing, through But benefit pretty it total line driven over earnings. in just of our cost better across the cost delivery with also absorption, which top into other that on Yes, flowed else costs. other the benefited delivered of is

Operator

next Filippo Falorni move with we'll to And Citi.

Filippo Falorni

lot data, seems of questions I at [indiscernible] you of if later it business. wanted introduction Linda businesses on two and the ask you've shelf your called look it space pack recovered the out, Glad seems the track-channel sizes. a the that to In large with you

it could of So to ability a consumers period recover after in in to shelf more there. opportunity you and about an a space. -- give progress seems your And Can the update later Canada? talk to there's your little brand bit maybe you like shifting convert back

Linda Rendle

on Starting had made in on a in very merchandising that place, was including Glad, we recover, all good retailers We the I but progress Thanks, share but performed accelerate bit Trash to QX. well, take We talked QX, of the growth. very businesses and point with quarter. performed last of Day, returned about we very longer Amazon to make Prime that that seeing we we plans very and was well. across the to as consumable through strong We've time, other Glad this continue moved grew we shared merchandising item it Sure. #X would strong Glad, think saw Filippo. we're share and you a X.X one of in little great progress

that restored we hold and a into QX. come addition QX fully stick that In of distribution, and where out we seeing business and is we're and as have

good the work progress demand pleased on building with on some like innovation heading the perspective. plans the right great feel in more trajectory do. an Glad. and We've right subscription from to the feel bit our work we about progress, A have also have more business. restoring share, So but I'm direction and but we're little on Litter, to do we made

So the our subscriptions. leading use retailers one of that

We returned have business XX% of [indiscernible]. at We've that also lost. position to restored the with over share subscription that that we retailer #X

feel I get direction we're subscriptions. in bit the places right in consumers nature that where good to it's the back given difficult moving a more of So little

also returned litter. share growth in We to

with grew feel our one also pre-COVID we're a it's again, of we business we a share take to time feel QX, that's and to the point pleased We'll if a that half. and in again, progress across we quarters, the on just that support, litters back, get to businesses, continue good ] trying get going going seeing strongly given look linger that our merch but I and like have and to the continue to the [ feel recover just bit normally more expect innovation I bit But normalize little in promotion. we'd we quarter. see all what for ensuring we higher advertising throughout longer. We're over I'm think than back So that again, to consumers about back. X.X share but accelerated one where good warranted sales it's the is invest couple a in would we as

QX on we and make QX. this we have and track plan to say in we'll the that continue QX, for progress I year, And are with would

Filippo Falorni

I ask on can then, margin. Kevin, one And if gross more

in QX, your account half. QX, target you ahead going outperformance if first like seems of the well even for in year it your you're to the be Given guidance full

half So can expectations give sense back what your gross of the us a margin? are in on you

Kevin Jacobsen

Filippo. Sure,

volume you QX, in saw think our due our be the will remarks, low primarily updated the declining expectations. We at look to margin you down, of gross deleveraging in we've prepared If probably teens.

XX.X% be QX it or year. it an that back half. to for really the to that exit down and what the to sort the front be versus important of different I'd expect don't And so be for an expectation half rate back we're is, expect full in in of XX%, half our I expect year, projecting

the fairly get reflect up the at exiting year of consistent and we would where that wanted to year. through for So a then and rate the at recovery end to

Operator

next from come JPMorgan. Our will with Andrea question Teixeira

Andrea Teixeira

more I thinking time are was the a little heard if -- margins value-seeking you're it and of just half. of as to Kevin, can for bit your different RGM see taking as consumption and in puts long and and share, market on packs to takes, that. cadence from there hoping that follow-up commentary recovery of category we and responding a with on behaviors count comments, how to about a because the And all second you obviously, the but you you're in talk any then

a lumpy last last pronounced in margin fiscal like the should about fourth was with -- year, So think year quarter. it because more like we

us So to your for given fourth balanced the commodities third be more first outlook, thinking model it from quarter? well, that will like now you quarter and like initially it help or as it as you for seems balanced what last can how exit as your and has the and you if more a was with revenues the commodities about in that guided if changed

Linda Rendle

expectations. largely your environment had we All with expected. higher categories a we for as a see their some impact single-digit looking playing pocket. more behavior. What talking lower, that, got to would that is that right, average and the to to looking continue of to -- we the value-seeking for for smaller question. we are that's categories is We've low, from And with on They the that category Consumer several saw start consumer a last about right. X% single-digit some in expected lot quarters ways consumer stress buying our growth been the Andrea. They're bit we about I'll consumer in line about just was talked we sizes QX, low but right low to be is -- exactly to which larger and move bit X%. get They're they're buying to maximize growth, what budget. under sizes, broadly than promotion. out our out

work we're So that promotions well. returning pre-covid the temporary price we well to in with the put worked seeing place, consumer. And those levels reductions have

wallets for shoppers we're at Obviously, seeing retailers fighting this point.

different retailers. value-oriented We're that seeing of normal But across expectations all different tactics of shift to aggregate. for a So our and are you're in different I very seeing is would moving continues. line that channels channels with more say exactly consumers in that

like in we shares. the what Private is categories. I'll earlier of shares even our that usually XX probably year. private point the for XX this of look just months. that's salad we're our the QX, balance think These in trading will news over history, at environment what environment consumer and categories, we're growing the point versus at levels good dressing. That's share I best coming of are but the is not And the down But on this expect continue that uncertain run to that expected. for What the for label is timing we in to all to the those to cycles safe every those pre-cyber seeing plays and particularly private think our down look We'll label if except that wipes U.S. I there's it's We And quarter made say months. I see how reiterate two, one an there, out. out in categories. label exactly guess

coming expense of growth at private competitors. is coming it's label So --

feeling We're good. very

the we would and promo grow value working. that advertising and continue promotion to trade our offer superior the in increase that we're the resilient environment. And on, we've are got to right intend to and and feel plan point sales share brands execute environment are this going Our at in

Kevin Jacobsen

We with margin, in in when start I'll you'll this across rest the commodities the million. year the supply inflation levels came August, was maybe equally chain. to on then, fairly cost of supply chain. on And your fairly in about inflation gross operating start said view. And be and expectation questions our view commodity a between we we're that And Andrea, the back $XX our normalized recall split would is of across

fairly in a anticipated. we this place just update think made say be outlook. still for little just have modest commodities I'd We we slightly now, less going better, to bit but a in than it's inflationary,

I delivered margins impact we down our margins, QX the in in meaningful year full then have we'd and our because on And the So our of obviously, phasing said be basis deleveraging, expectations based be on we've XX%. about QX, XXX won't margins, much do down update made. gross points. on less to than on expect we

gross will rate put out margin range. half full continue year by that with somewhere at kind And line probably be somewhere believe the that around we XX% then that around sort back run don't estimate. So that it to half, in of XX.X% XX%, back exit the will the rate quarter. I of break

Operator

We next to Anna will Lizzul of with move Bank America.

Anna Lizzul

XX% through of continue? expect promotional also I that wanted your full in about we year? growth ask and sales drive we a U.S. retail consumer advertising, think year environment And spent on on pricing light the to in just the guidance How move to expectations to volume you as in And you order the over spending. dynamic should is business. with the increased of

Linda Rendle

well. as little have the is particular, outside see it of really management. you'll for revenue of relates the as we to in And in net what that pricing, Anna, remainder year pricing the U.S. very

place. in but as program in put expect building and that we in year year fiscal 'XX delivering beyond 'XX, to that build, program We continue value fiscal to

growth price So those as lapped this is that we've increases. seeing we're volume-based really

segment less started other that promo a back QX as was The half other given about to distribution. that is mix, expect dynamic but of QX but talked the year that, offset, to hit play the factors into of with That that QX continue out. fully price and by to restored dynamic we last that we we've we a mix, and impacted is happening seeing some in course, trade of in that promotion fact are on course, of would increased

value being continue we about do So and this sales around trade growth through demand really it pre-covered the ensuring comes around aggregate XX.X% our will expect that to consumer. XX%, that at level. through we we levels for promotion When right be in to expectations And we the in international. volume-based about are innovation, about the through the shelf the than have U.S. spending, advertising say right. spend We more typically promotion, at

on effective I see for to each to expect we what business the in by a come. to the dynamic and of whether business units going varies play be the you merchandising So that on of move would matters but course, as in have for one continue what's would pulse of see depending that international out business that ahead expect that forward. quarters period run U.S. the particular quarter, that we to or And innovation

Operator

We'll move Goldman Herzog next with Sachs. to Bonnie

Bonnie Herzog

Litter. promoting follow-up mentioned had I quite you quick question a you're Linda, on heavily.

hear in your dilemma I how right I'd strategy guess overall to modify now guess, if promotional you lift category, I And the by you're forward? might are appropriate promo this getting to considering spend you then in And spend? in the elevated if any everyone? you a that be going have not, concerned your plans prisoner's you love do on believe So way

Linda Rendle

for you different. to case consumers, hard when in talked using little a is this bit that's behavior a consumer where change is a litter, on a number about have cat them. of litter We've past the Bonnie,

disappoint bit to about promotion fresh out bring need use were in to And so a to that and toolbox, the back ensure it's remind we them including they their cap our to love. that of thinking levers what we have the them there's while love more were we time that we they stock, but sorry we why to litter step trade

value is a of we promotion. value. communicating doing what right is And we're we're smart think don't so not incredibly et that, as for do outside consumer is What deep we cetera. anything as our or that changes anything that this discounting brand to long of think not the products, the would we our is And

strategic So that promotion that right feel way. is the I very in done good this is

expect will anything a I that certainly is over of that are normally would and promotion in this bit doing, what what I that, normalize, category seeing But promote share feel outside would unique, just like we're given However, in don't we back do the way. we had I competitors gain category and we've marketplace. to little time also again, the think

about This the around given I U.S. I your that and I that question It don't this forward, many that great gets feel prisoners natural faster news the the think think don't average category places moving categories dilemma category, at has the the have. than cats world. in which grows on to tailwinds are of all. number

has been In a category. this can innovation-driven addition, you heavily times us competitors. by our and category many it's reinvented say And

If you I that or different substrates, so turning like is lightweight at no into and that. have things this fear look

that, of for and and see what I beyond out half we'll are us I'm certainly well all that planning think and we'll as well. the from that sure is great innovation, back this we get of competitors

Bonnie Herzog

you? recovery? consumer think your the specific weaker about untracked I that are wanted And performance some shown by your how any weakness Okay. between just the growth if has of there like guess, seen be perspective maybe channels on shifts your channels then. whether as to also traffic, some rate attack, We've I And differed I peers channels. tracked have helpful. for get just any foot channel or it lower cyber I That's and channels, may, that heard have lapping

Linda Rendle

that's our are consumer on not expected specific anything recovery value But a change due seeking. cyber on driving to Sure.So in certainly we channel, that's seeing we to consumer a in behavior behavior. seeing are change

shopping a and bit really deal to that's moving consumers and see So channels value-oriented promotion more channels. We more we important. on where see consumers

are consumers can small a channels be to in we grocery. like to and move that go large channel So they those. And would sizes get sizes as seeing where they

club, is use. for because where the largest get lowest size very So that obviously, the strong price you and per business that's can

expect continue. more to stressed, and They trips, tend value in more see dynamics consumer as would we have those consumers to we So stock-up when more times some typically the fill-ins is are It's wallet. unusual managing we're with distribution expectations their line But and our in any cyber. there's what related seeing. about or of or recovery from in nothing merchandising nothing our to

Operator

And our next Moskow TD question Robert will come Cowen. from with

Robert Moskow

then and I quarter first and like then understand to just know compared And by I seasonal for margin? I deleveraging gross want second, being to down sure for year, mean the if you're XX% beating like the there but make dip about doubt logic in last I to Because the consensus I margin just secondly, at you're deleveraging. understand what I'd XQ. gross that? causes EPS. XX% on XX.X% is you $X.XX. to something

or so. raising XX% by only about You're

by So that did something your this internal than less beat in you or estimates by much quarter. first the

Kevin Jacobsen

have the X normalized year, business by to primary seasonal to really our Yes, And QX quarter do and those happy Robert, be driven a of we gross element margin questions. around it's -- lowest particularly gross our margin, would years. typically take factors. in

the season. is we're of first charcoal The Kingsford out now

business for season birds the bit time business our of in profitable QX comes QX Kingsford it nice in to the lower as we margin. is and be at So business well of which where period as we're and holiday Kingsford a a a tends bit do low of merchandising, QX, then XX% a doing quite about it's that

So top we added said, of as the as this that plus historically, that's lower deleveraging quarter and been with declining the the digits. double reflects us, always impact a well for line margin

this. And were this about then quarter year. stronger year. And is, certainly, things into forecast, outlook than appreciate disclose forecast. one we couple set the and our of our interim only There's the to as we thinking a on for the first EPS, don't we going think one internal I you're what We're the came in

year, And year. couple thoughtful said consumer so I be the areas closely, as good having which for particularly environment. a as ahead health think, full of that, U.S. to want the to this of that's, talked pretty we've not give well But about always we watching of we're is ourselves the the counsel. promotional And as

going we Now just like QX that played continue. out that's mean said, as to expected, but doesn't that, Linda very much

And that's we're very to had closely. So time we going some then watch something elements.

in as of mentioned, shipments that QX. on over-delivery some QX, was So we forward based pull some from

So have full year impact. a that wouldn't

some just And I what I And important. and we got a flexibility. give then gives think, think environment I'll if some and the it's is address macroeconomic than it maybe is changes us the you financial last This that's like is I perspective we've flexibility still volatile financial different environment to what think that.

early full know, we the That's think I but plan where deliver took we're think we full So right -- in year, I to you as we the the up a being that really for the And just how builds got year. we've year. and able approach this the our confidence in year. modestly sit

Operator

with move to we'll Raymond Olivia And James. now Tong

Olivia Tong Cheang

this talk at whether one if follow-up then about And given once of letter, or point, Could especially pantries, on in businesses trade just the level have you of consumer gross a consumption sort the view spend in you inventory those at normalize? promo trends positions on your retail think traction about and you how margin.

overage? you've working management, much of revenue from fixed could margin leverage/recovery the that of just architecture digital work If kind cyber you're think pack of as the doing, about the gross about stuff what's ongoing portion to how been sort just was overage cost the opposed on to price you either of of sort portion talk ongoing

Linda Rendle

major We're normal the going inventories or We in call beginning, things see see coming the on anything but at material pretty a So the that out. inventory call environment. We to up. there's front, quarter just seeing not nothing here. normalized retailer retail quarter to no down things out happen much really inventory at where are end,

pretty do would and anything at really consumption only in that. from We for but in and call I distributors retailers wouldn't just to and of cold our we anticipated to I there's in On just QX we any about front, and professional business, into nor And would we And that's the thing is closely watch we out gaps. say -- shifting it But to about. nothing did season, as QX. much would happened QX in same. flu I consumer shipments there's ready for point, and see a and thing call it shipments in pretty talk tend The material getting noted instead. QX have normal this that's the see be if plans our out some

And so forecast. cetera, that plans et for there are have retailers, if adjustments don't our we by any in

Kevin Jacobsen

improvement Olivia, then, nature And the the I I can year you have we see from the very of performance this of attachments, savings. gross structural. margin strong web is of gross your to certainly question another basis what to in our savings. year. in good portion track XXX QX margin on points our And question, to I delivered QX is think We're would about point think cost on in cost

XXX this over I'm good expansion margin of a work we've track you XXX EBIT each on points to again we're year. years, last we by basis as that team I over the the couple each and points know, year. target do of the delivered of But very believe because think year, I basis

continue. savings the cost certainly, So element will

bit the back about are was They to dilutive company. item, benefit X in August of recent we divestitures. talked other a margin both the though, the The

structurally So margins XX improve by average. basis divesting those on will our points XX businesses, they to

of And that we're see in starting so benefit to the QX.

you'll quarter. the in into playing the see the beyond. VMS start move QX because of get full to of we didn't and middle more benefit we we sold as the that out But Again, business

Olivia Tong Cheang

imagine follow-up. manning, And of Got particularly that The it. then business what's comps piece maybe the like just at the changing [indiscernible] really that's I I it materially in one remember so XX% growing rate PPD? that? because is all a the of Because the - that's the can't that in if driving demand correctly, are mid-digit

Linda Rendle

Sure.

that reduced strongly lot at and lot spoken both contributors removed International, So talked about we've rate be international a our that that mid-single-digit moving they'll manage volatility we growing stability forward. of a the about feel of the as we've the Argentina. think out that stronger coming and and continues, business, experienced We feel business. of I had PPD we FX that see world, ability to that grow we and now different have business we more divested headwinds of about that and parts even Argentina we in the

patients. that to From with normalized. to in we the We've today. up seen a COVID. and now as industry we health in to pretty play was protect they during is those office so talked we a we're right that we've different cleaning their protect people not of work in we places place coming and the to one consolidation that expect. workers result disinfecting what the don't PPD a of see opportunity as our have lot across a about care ensure and But products back perspective, that The which much This portfolio innovation, to might is with right favorable is down have got systems and able to past,

confident seeing in certainly, above growth business of that feel evidence upside we that in QX. above forward. to ability average continued see average and its moving in -- And we're deliver we So company

Operator

Kevin take our Grundy next we'll question BNB Paribas. And with from

Hearing next move no Kaumil response, will our from that Gajrawala. we'll question to come

Kaumil Gajrawala

for on sort piece the time so today? in past, the but the not maybe And big what as of conversation is a and been of much Canada learning far on the just perhaps U.S.? line It's turning

Linda Rendle

your you cut question? do repeating The mind part off. was Kaumil, first

Kaumil Gajrawala

I far about time what and like line problem. so looks the you've asking for was the U.S.? what from and No learned ERP Canada

Linda Rendle

smoothly fiscal was customers them we your fiscal Sure. actually as ship exactly of year, significant lot disruptions lot will want our didn't more spoke a last with and doing complex is of Canada is end -- That execution and the business that ERP this this lead an and it retailers didn't that much just had in when going went and beginning went The any fact, very what the even come the on, transition. at more you and said, We done we implemented end the a it time points, from team which that, experience, have really in last year, they of many ERP more that remember preparation noted that businesses. of being it to possible market a as ensure lot well. as about U.S. did. And briefly next, of you're any beginning

the little to what a heading So a would would year. of report and and at But is all that detail we through begin how implementation what and building for won't the will complex our of that learnings giving fiscal a play and this expect it QX be in at Canadian taking the lot U.S. team implementation. earnings us any we happen exact Canada, phase plan feel expect very that working we release able on out look still very U.S. the We're that, impacts. about at that because timing We potential bit like implementation now. had more we will once end confidence our we'll from how into right good did the that to

Kaumil Gajrawala

Okay. Great. how piece you're piece litter, to as about marketing is a on it, also a but it. to -- the quite suppose of And come is I large consumer thinking you're when back, of promos get then

to maybe So to switch talk can where get you bringing try were to doing consumers? to about consumer back new in specifically they what even maybe just that or you're

Linda Rendle

absolutely. Yes,

well mind. for products of any what loved they've And we're trade people that why doing. reminding the of be that maybe of [indiscernible] introduced have part brands is top to of a to first time your about promotion point, benefits should always we the only they and our claim litter the And in QX. think that that we pretty with for ensure and which architecture to in the continuing right have first ensure business, put and July, litter. and pack advertising in price is We're have saw we results we step doing that, our place the we share that new contributing You're the is other right right or why to we clearly,

the We're what claims is allow of with real term, advertising, doing steps. taking which that increased to ensure on subscription at up to conversation love. advertising those the we're them reminding better which level, more in the time can have and we using and we can of do kind one-on-one can engage brand them us And obviously, communicating really messaging digital, that short So with well. we're through know consumers. fresh they And that's that with them a worked pretty

of and ecosystem of It's we we about couple and lot we the right in last come we're What sets pull. work, levers feel you the plan as given the about next we that that plans we would we've done forward, to put at the the innovation thinking us place year. But of the launch the ensure improve over all face. clearly them remainder more to are that entire we we're as to Moving already sequence overall can looking what superior that proposition do product, expect in innovation, now about a say, the delight and package, can that value feel advisement communication for how how great to shop we're really to those of that quarters. but the so that beginning taking communicating good the they place, we are under I have we brand through for our it,

Operator

to next move Barclays. Lauren with Lieberman We'll

Lauren Lieberman

But a and could remarks, international, mentioned just Great. like of in timing in the better on on more you and sounded top international the pull it's Can expected what just surprise the kind that of of than on curious quarter think if that trend. also forward you line timing talk it bit on about elaborate gives like prepared and us less better I sources -- professional products. little you went

that? So I'd like to hear more about

Linda Rendle

also Yes. our But bit And international of wasn't in the together impacts of as Overall, say other, or stability in we're we're to around we've put one good was innovation are widely majority seeing the the it's the working, pockets way world. Argentina. seeing I went consumer outside international seeing of better, that of some say just that's better. the coming we And had expectations, execution it's fundamentals, I certainly, everything and all the FX strength just due just would now headwinds surprise some just performed nothing it would a We're working. well. the our little a removing we things market major But that Argentina. plans removed of

Operator

to next Fargo. Chris move we'll Carey Wells with And

Christopher Carey

of So the quarter about into have and the half pricing the back in year. really, a question I I guess,

don't if X but price/mix the that international, back to prepared the pricing like it's in So just yet that above to the X% positive I that this of in been close QX disclosure, realize half if -- in And segment for lifestyle. down a look or to there's to if of really, down given I'm in think flat going I X% low bridge misunderstanding kind is I sales the at is the understand know in household, just over if pricing expectation wellness, understand dynamic if on and digits probably help XX% growth. is right recapture volume gap trying on into to X I U.S. now. plus organic me were X it's And I'm promotional I'm I'm health which business fully guess down trying things. in is I activity the you quite of I'm is tactical U.S. single XX% taxable don't -- I and couple the of underlying year? what on to something, maybe understand, the you business trying the that the and get just growth kind Is litter, fully driven price/mix can a to running logic volume by going be these just to remarks, gap.

would perspective help? any So

Kevin Jacobsen

one, Kevin. certainly I challenging to the is right I and Yes, given cyber a this performance bit Chris, now lap. agree it's answer that can the read

versus because underlying business. of I So can the happening cyber separate what's maybe

favorable of very give If seeing significant give And is out. reversing And a what you I'll price we in why looked mix. just you last of lap year you're had the that that just noise in an strictly example. QX, That's for happened. I'll cyber. you little flavor most is

a is and Bees occurred reason Brita, Lifestyle our that about of segment when rate a generate what think Bees faster less favorable year, business The case business Burt's less business. business, much at points than more and That cyber is declined price/mix. per full lifestyle, LTL you we Burt's the as revenue negative about It than result other call businesses. impact you our truckload. look X the our our you or If that food and in last see a our event, at had we of

other just than a and be so just almost out the last that rate That's our a price because level. got grew really the environment. returning event. X of normalized Burt's and to within I'd less birth cyber we've about That lot lapping And nice of plus getting to sold year all to what back structural what Brita food year we reverses a businesses. point business tell unrelated spending noise you you appeared much mix you twice lab now What is the price what very and a if X, been trade negative you about. line more structural is promotional is to normalized had with We're think mix, of that this talking in

cyber We the to particularly we're event. be spending because up, expected lapping trade

favorable X and more some talking offset SKU that And Linda by of bit mix mix a level. about, business. little what that was was one mix. favorable than particularly of points negative point there's cleaning saw was So at our in spending the trade We U.S.

so And did X -- the in older we that a get was price that not delivery overall to helped benefit with that's was that the you QX. quarter point that that really to And anticipate mix. how

kind have take question. if there that the of the let ongoing to and that answers fundamental your So you are of to and of the just part really business. stop But get of the a see me down elements noise lot away lap

Christopher Carey

take by driven out again, I back you mix maybe that points any this can there's isn't into but as so cost it that? we the And the a start offline, modeling price -- dynamic to sales get organic but I'm And that international, take still of this the this that's will of I can there, That is X% that offsetting realize the of offline, in look, last Yes. I growth this kind away. XX year, volume. question XX% What's forum, go be? half had through if confused. would

Kevin Jacobsen

we And promotional now. quick as portfolio. a per business, lapping cyber. the a mix normalized in -- first activity the because we last year up. revenue answer phasing, the of half last in during just promotion you of terms year, mix were after we of front your Argentina half said, then And of year, It you that unfavorable case you the business expect in year base the we're year. shows an to will unusually structural follow to in give a the trade low the be the then level of of back divestiture of level in back And when of benefit But the can up lower I'll be it that's shows part have but and in business. up don't that

get That's free didn't back we're front don't half the with as bet. lapping you issue you the all get at cyber. Yes, really up to see spending. afterwards. if least to you when I half, But trade there, So a feel negative follow to we way expect

Operator

Your next from Javier will Evercore ISI. Escalante come with question

Javier Escalante Manzo

remind is for targeting organic what that is assuming X% are category underlying can you you us if and question that you're follow-up? the a the a growth growth X% sales to have for I -- XXXX have which to I equivalent

Linda Rendle

range we to said low was that single for it and were Sure, X%, X% Javier. We had that said digits, QX. within we so

Javier Escalante Manzo

see and coincided a we was -- hurricanes you in Southeast. there the the October with if least it it in you down both at as and spike, with seems CanaData, that use If

was Is your and that -- stronger possibility of expectations storm not is time, the If was at you that the serge mentioned and a factor? you because you impulse or are have and strong. that a your merchandise there purchases time than any when a have basically necessarily the lift very at quarter it of somehow would So you been. otherwise that was above possibility strongly promotional the

Linda Rendle

seeing a not as Javier. that We're factor,

the hurricanes pretty often U.S. have happen unfortunately in given nowadays good We pretty analytics

quarter, looking QX see as we we see don't in at October, dynamic. course don't would any versus loading, but in time different at we don't point, that, this significant What the think be it see shifts. I we periods, anything have can, meaningful impact splits at if a so very And see looking note the don't careful any about There's QX would timing time, we There's the impact and of we I also merchandising. short lapse. is it different pantry hurricane having

the the X% very try the to adjustments we we consumer. U.S. We'll the a right make if watch to still bit though, longer watch changes to in any year. range. range the see that there's view still is of X% X% we little the any so feel Again, for right for a if take pricing is there. there's we'll X% but And to now, to we But see or dynamic need comfortable

Javier Escalante Manzo

high is a then, Linda, business said level you strong expectations. by So basically the again, above that

So the expected? pan kind if believe X it is things not could you that externality, that me or like better you tell out you of X than

Linda Rendle

we business. and just picked came very in real portfolio, look that strong and saw and was very to you wellness PPD tailwinds significant business. that overall, you at health came home talked in laundry share in our our as share in about, care -- If actually We business. bleach up strong, growth our think stronger. we we there's saw And

we then, our PPD fundamentals that QX in some some of we're is of what's good And shift the performing are the trade and really it, a brands would offering overall, of great. course, of plans it I advertising bit place, have superior and was that's So coming delivering was PPD but promotion the value. between a is we surprise, back demand see better, working strength. of well. It's a what to QX. and And because talk the execution them very Consumers strong about

Operator

question And Bank. our next Deutsche Powers comes with from Steve

Stephen Robert Powers

if of one for questions, Two I each could. you,

ahead the in year. that perspective to Linda, X% you you round perspective, referenced on track, out for is in Kevin, about perhaps a related, you be to that plays SAP then guess, about it growth I balance metric how market, think the progress think is you'll what about just penetration of you, how of the consumption your frame the that think talk just over as the do in with half. second distribution one, you points that you X% to X% can compares consumption? first -- progressing, you exit ship it The you you're are trying on a seeing guys household year? X% to to as you gain how of the continuing the And any or to Or expectations think that's relative Just line? little materiality bit that

Linda Rendle

we Sure, a new something we that track? long or And metric it term had Are our to consumers that, postal us. expected we obviously, categories. took when a are at It retaining to of look unique penetration, Steve monitor certainly trade-off health and we in in We And them. pricing we're the But we say to that starting true right household is we volume-based consumers household of it's the our closely. rounds over X [indiscernible] we grow and that as in saw penetration businesses new will advertising reverse, focused change was for but strongly that those continue the trend is time, begin promotion bringing on. behavior consumers penetration, on that's sales to bring as expected, we in we're growth that expect, bring up as and we And invest will what the they we're innovation, as we again. and good news in and consumers now. see back that to over reacted pricing. experiencing showing we would that's to wasn't

have we But as that a you put the grow in to say out things right time, within some this experiences we categories, how and we we in people, superior the we're at and period if is do point. the reversed of that to would it of categories. grow noise a value to to disruption that's how be Then grow would and on and about doing a fact expect trend household to noise of want share those with But place We be that stock penetration. where here focused has for for we the want focus we all well. data cyber on know from throw the and we that growing it were I turned,

is we're focusing consumers more we're the all also on a than when that's normally more things say things a think long-term I'd seeking perspective. time things value, bring the we're category So to track, retain like do. categories that would trade do. we're we but that into work from what promotion on on and them. focused other And doing I consumer good and But during ensuring

Kevin Jacobsen

And we believe in then, back the SAP. for -- half, X% not on algorithm. that we're don't any shipping are to in assuming Steve, with growing above of We're X% not consumption in built have line our We kind we that's impacts line with consumption.

think I mentioned you that.

make Linda said, appropriate of come So back any SAP. the relates we'll that's think we as as it to February are adjustments impact and in

building are U.S., the U.S., of portion expectations, benefits in two all that in building of line to the that professional, in portfolio relates blocks really growth Clorox international businesses. as Those talked with the performance our we and just good blocks modest the the outside the really this the well So divestitures really category as of consumption. the about, strong it's

Operator

Kevin Our Grundy next comes BNP from Paribas. question with

Kevin Grundy

what would business, sort at of tariffs risk in us Sorry, back if of way question were of housekeeping. remind covered ground. Kevin, before There's week the quick this I my just be can sort election we is and you potentially an a just came into dropped play. broader of a next off. the that will broader portion be ton there because line of

be So maybe would U.S. just helpful. of a the question around outside sourcing

Kevin Jacobsen

chain too you, disruptions but specifics tell of all we can work won't remember quite bit I what of Kevin, here, many number go you and years had if we've the done ago. Yes, a I in a supply obviously

closer we but not result of a been We've companies many much say, it to, more and -- were realize bit to quite move of I'd our anticipated. work doing onshore production and I vulnerable we we As just think that, than to a nearshore Clorox, consumer.

U.S. for you Europe And manufacturers we've markets. capacity number and contract of so in Life's expanded know businesses over the last stood Asia We've in years, those the up in may

of so reduce these done long quite to risk supply work chains. bit our we've And of a

know, you suppliers. And of network broad I think that a certainly we benefits as us. have

of, in but manage And so focused been many certainly something we and I to team access can that go has won't something very aware to on we've product we're too our make effectively. specifics, sure got

business this happening point. any on the don't at disruptions we so major this see And

and this in of have There's speculating going wait play And of legislation. actually I think on ahead to may ourselves exactly don't types lot how this see plays on. of to all to But how any I start get out. we want and see out. want discussions a turns I what

so nothing And making prepared on that specifically we're that for we've any eventualities. right we're into at it's very sure and focused we're is outlook. something this beyond baked now, looking But that, in

Kevin Grundy

Totally fair.

portion a outside to the top bit currently of of on ask of cost uncertain of goods But uncertain Just box maybe lot I'm company's in U.S. outcome. it question sourced an going you little a what in more understanding are to an we're realm the from a of

Let me it way. that ask

Kevin Jacobsen

that We to don't out break you.

Kevin, So that's we provided something probably. not

all broad don't the a the comes down world, but how we from outside have U.S. versus over the suppliers network much We of break inside U.S.

Operator

concludes the turn Rendle, you. now the back This I question-and-answer Ms. session. will conference to

Linda Rendle

Jim. Thanks,

close want to areas. today's stress I call, As we three

First, we commitments. have made strong progress against our

consumers. deliver team our building in growth for February. our future. the we growth steps taking to and continued questions. shareholder on We're continue to them look transform you enhance accelerate to for forward company more superior and consistent, time the long-term in for are progress a stronger your deliver And is you strong, to brands experiences your right and for poised to invest We Thank our value. updating Second, and profitable finally,

Operator

conference concludes you And call. today's this for Thank attending.

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