After posting another double-digit revenue growth quarter, Clorox CEO Linda Rendle told CNBC that the company is focused on developing new and innovative products to help sustain the momentum it gained during the coronavirus pandemic.
The household products maker reported before the open on Thursday, posting $1.84 billion of sales in its latest quarter, up 27% from $1.45 billion the year before. Prior to the global health crisis, the company consistently produced single-digit revenue increases or decreases.
Jim Cramer asked Rendle if the centenarian company can sustain growth post-pandemic.
“We think we can because we’re focused on innovation and ways to help consumers as they have these new habits,” Rendle said on “Mad Money.”
Clorox, which makes bleaches, cleaning wipes and other home goods, has delivered at least 15% revenue growth in four of its last five quarterly reports as consumers bought more cleaning products to fend off Covid-19.
Clorox expects to capitalize on new consumer trends that emerged as people spent more time at home in response to stay-at-home orders and social distancing guidelines to combat the Covid-19 outbreak. Clorox’s health and wellness business reaped the most last quarter, which was the company’s second of the 2021 fiscal year. Health and wellness sales grew 44%, followed by household sales growth of 22%.
Sales of Kingsford grills surged by 15% over the past 10 months as families cooked more meals at home due to restrictions placed on restaurants across the country. People have established new habits that Clorox seeks to serve, Rendle said.
“We’re going to deliver innovation that helps delight them,” she said. “We’re going to be there with better solutions in both charcoal and pellets to help delight them.”
To keep up with pandemic-driven, Clorox has run factories around the clock and used third-party suppliers to help meet consumer needs.
In addition to the strong quarter, during which the company reported earnings of $2.03 per share, a 25 cent beat, according to FactSet, Clorox raised its full-year revenue forecast, inspired by sales in cleaning and disinfectant products. The company now expects sales to rise 10% to 13%, up from an initial forecast of 5% to 9% growth. Full-year earnings per share are projected to come between $8.05 and $8.25, which was previously expected to be between $7.70 and $7.95.
Despite the earnings beat and forecast raise, Clorox shares declined more than 6% in Thursday’s session as the stock continues to retract from all-time highs set last year. The stock closed at $191.65, down 17% from a recent peak last week.
“We have our sights set on accelerating the growth in the long term and we see tremendous opportunity to do that,” Rendle said. “We’re seeing consumers change their behaviors not only in cleaning and disinfecting, but in taking care of their home and wanting to have better in-home experiences.
“That certainly bodes well for our portfolio.”
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