Clorox Releases its FY23 Integrated Annual Report Highlighting Progress Against its IGNITE Strategy and ESG Goals

Rhea-AI Summary

The Clorox Company releases its fiscal year 2023 integrated annual report, highlighting record-high revenue and progress in sustainability goals.

Positive

• The company achieved record-high revenue and maintained total market share through its IGNITE strategy.
• Cost savings exceeded the IGNITE goal of 175 basis point EBIT margin accretion.
• The company launched innovative products with environmental sustainability attributes.
• The portfolio includes brands deemed superior value, meeting diverse consumer needs.
• The company achieved 88% of its 2025 circular economy goal for packaging and maintained 100% renewable energy usage for U.S. and Canada operations.

Negative

• None.

OAKLAND, Calif., Oct. 6, 2023 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today released its fiscal year 2023 integrated annual report, showcasing performance and progress against its IGNITE strategy in driving transformation, growth and long-term shareholder value, all aligned with its purpose and values.

The Clorox Company today released its fiscal year 2023 integrated annual report, showcasing performance and progress.

Highlighting the company's 110th year of business and operational performance, the report details how the company generated record-high revenue and maintained total company market share through IGNITE and its integrated environmental, social and governance, or ESG, goals. Highlights include:

• Fuel Growth: Delivering cost savings above the IGNITE goal of 175 basis point EBIT margin accretion, helping to rebuild margin back to pre-pandemic levels, and integrating strategic choices, such as reducing plastic and other waste, to drive cost savings and sustainability goals.
• Innovate Experiences: Launching innovations, many of which have environmental sustainability attributes, across all major brands and hitting all-time high return on marketing investments.
• Reimagine Work: Investing in the company's digital transformation and new operating model to create a more inclusive, consumer-obsessed, faster and leaner company.
• Evolve the Portfolio: Maintaining a portfolio with 60% of its brands deemed superior value, a testament to strong, trusted brands and the commitment to meet the diverse needs of today's consumers.
• Sustainability: Achieving 88% of the 2025 circular economy goal for 100% recyclable, reusable or compostable packaging and maintaining 100% electricity from renewable energy for U.S. and Canada operations, which helped accomplish its 2030 scopes 1 and 2 science-based target. Advancing product stewardship and employee wellbeing efforts to support healthier lives.

"Our integrated annual report reflects our journey toward a stronger, more resilient future where we champion people to be well and thrive every single day," said Clorox CEO Linda Rendle. "We are proud of the progress we've made through our IGNITE strategy and are optimistic about the opportunities ahead. This report is a testament to our teammates around the globe who delivered our strong fiscal year 2023 performance and our continued commitment to our stakeholders and our planet."

The full version of the integrated annual report, available as an interactive PDF online at thecloroxcompany.com/annualreport, includes a graphic documenting the company's value creation process, financial statements, an ESG materiality overview, and ESG reporting against Sustainability Accounting Standards Board's standards, and the Task Force on Climate-Related Financial Disclosures. It also documents how the company's ESG priorities support the U.N. Sustainable Development Goals. An executive summary of the report is published online in English and Spanish as well.

About The Clorox Company

The Clorox Company (NYSE: CLX) champions people to be well and thrive every single day. Its trusted brands, which include Brita^®, Burt's Bees^®, Clorox^®, Fresh Step^®, Glad^®, Hidden Valley^®, Kingsford^®, Liquid-Plumr^®, Pine-Sol^® and Natural Vitality^®, can be found in about nine of 10 U.S. homes and internationally with brands such as Ayudin^®, Clorinda^®, Chux^® and Poett^®. Headquartered in Oakland, California, since 1913, Clorox was one of the first U.S. companies to integrate ESG into its business reporting. Visit thecloroxcompany.com to learn more.

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Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, statements regarding the expected or potential impact of the company's operational disruption stemming from a cybersecurity attack, and any such forward-looking statements involve risks, assumptions and uncertainties. Except for historical information, statements about future volumes, sales, organic sales growth, foreign currencies, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, foreign currency exchange rates, tax rates, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management's estimates, beliefs, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "will," "predicts," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management's expectations, are described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2023, as updated from time to time in the company's Securities and Exchange Commission filings. These factors include, but are not limited to: unfavorable general economic and geopolitical conditions beyond our control, including supply chain disruptions, labor shortages, wage pressures, rising inflation, fuel and energy costs, foreign currency exchange rate fluctuations, weather events or natural disasters, disease outbreaks or pandemics, such as COVID-19, terrorism, and unstable geopolitical conditions, including the conflict in Ukraine, as well as macroeconomic and geopolitical volatility and uncertainty as a result of a number of these and other factors, including rising tensions between China and Taiwan and actual and potential shifts between the U.S. and its trading partners, especially China; volatility and increases in the costs of raw materials, energy, transportation, labor and other necessary supplies or services; the impact of the changing retail environment, including the growth of alternative retail channels and business models, and changing consumer preferences; the ability of the company to drive sales growth, increase prices and market share, grow its product categories and manage favorable product and geographic mix; risks related to supply chain issues, product shortages and disruptions to the business, as a result of increased supply chain dependencies due to an expanded supplier network and a reliance on certain single-source suppliers; intense competition in the company's markets; risks related to the company's use of and reliance on information technology systems, including potential and actual security breaches, cyber-attacks, privacy breaches or data breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, business, service or operational disruptions, or that impact the company's financial results or financial reporting, or any resulting unfavorable outcomes, increased costs or legal proceedings; the ability of the company to implement and generate cost savings and efficiencies, and successfully implement its transformational initiatives or strategies, including achieving anticipated benefits and cost savings from the implementation of the streamlined operating model and digital capabilities and productivity enhancements; dependence on key customers and risks related to customer consolidation and ordering patterns; the company's ability to attract and retain key personnel, which may continue to be impacted by challenges in the labor market, such as wage inflation and sustained labor shortages; the company's ability to maintain its business reputation and the reputation of its brands and products; lower revenue, increased costs or reputational harm resulting from government actions and compliance with regulations, or any material costs imposed by changes in regulation; changes to our processes and procedures as a result of our digital capabilities and productivity enhancements investment that may result in changes to the company's internal controls over financial reporting; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including changes in regulatory or administrative activity; risks related to international operations and international trade, including changing macroeconomic conditions as a result of inflation, volatile commodity prices and increases in raw and packaging materials prices, labor, energy and logistics; global economic or political instability; foreign currency fluctuations, such as devaluations, and foreign currency exchange rate controls; changes in governmental policies, including trade, travel or immigration restrictions, new or additional tariffs, and price or other controls; labor claims and civil unrest; continued high levels of inflation in Argentina; potential operational or supply chain disruptions from wars and military conflicts, including the conflict in Ukraine; impact of the United Kingdom's exit from the European Union; potential negative impact and liabilities from the use, storage and transportation of chlorine in certain international markets where chlorine is used in the production of bleach; widespread health emergencies, such as COVID-19; and the possibility of nationalization, expropriation of assets or other government action; the impact of Environmental, Social, and Governance (ESG) issues, including those related to climate change and sustainability on our sales, operating costs or reputation; the ability of the company to innovate and to develop and introduce commercially successful products, or expand into adjacent categories and countries; the impact of product liability claims, labor claims and other legal, governmental or tax proceedings, including in foreign jurisdictions and in connection with any product recalls; the COVID-19 pandemic and related impacts, including on the availability of, and efficiency of the supply, manufacturing and distribution systems for, the company's products, including any significant disruption to such systems; on the demand for and sales of the company's products; and on worldwide, regional and local adverse economic conditions; risks relating to acquisitions, new ventures and divestitures, and associated costs, including for asset impairment charges related to, among others, intangible assets, including trademarks and goodwill, in particular the impairment charges related to the carrying value of the company's Vitamins, Minerals and Supplements business; and the ability to complete announced transactions and, if completed, integration costs and potential contingent liabilities related to those transactions; the accuracy of the company's estimates and assumptions on which its financial projections, including any sales or earnings guidance or outlook it may provide from time to time, are based; risks related to increases in the estimated fair value of The Procter & Gamble Company's interest in the Glad business; environmental matters, including costs associated with the remediation and monitoring of past contamination, and possible increases in costs resulting from actions by relevant regulators, and the handling and/or transportation of hazardous substances;  the company's ability to effectively utilize, assert and defend its intellectual property rights, and any infringement or claimed infringement by the company of third-party intellectual property rights; the performance of strategic alliances and other business relationships; the effect of the company's indebtedness and credit rating on its business operations and financial results and the company's ability to access capital markets and other funding sources, as well as the cost of capital to the company; the company's ability to pay and declare dividends or repurchase its stock in the future; the impacts of potential stockholder activism; and risks related to any litigation associated with the exclusive forum provision in the company's bylaws.

The company's forward-looking statements in this press release are based on management's current views, beliefs, assumptions and expectations regarding future events and speak only as of the date of this press release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.

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FAQ

What is the main highlight of The Clorox Company's fiscal year 2023 integrated annual report?

The main highlight is the company's record-high revenue and maintenance of total market share through its IGNITE strategy.

Did The Clorox Company exceed its cost savings goal?

Yes, the company exceeded its IGNITE goal of 175 basis point EBIT margin accretion.

What is the company's achievement in terms of sustainability goals?

The company achieved 88% of its 2025 circular economy goal for packaging and maintained 100% renewable energy usage for U.S. and Canada operations.

What is the percentage of brands in The Clorox Company's portfolio deemed superior value?

60% of the company's brands are deemed superior value.

Where can I find the full version of the integrated annual report?

The full version of the report is available as an interactive PDF on thecloroxcompany.com/annualreport.