Mon, May 5, 8:46 PM (10 days ago)
**The Clorox Company (CLX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $1,668 million, an 8% decrease YoY, primarily due to divestitures of the Better Health VMS and Argentina businesses. - **Profit Margins:** Gross margin increased to 44.6% in Q1 2025 from 42.2% in Q1 2024, driven by cost savings and divestitures. - **Earnings:** Q1 2025 net earnings were $191 million, a significant improvement from a net loss of $50 million in Q1 2024, due to higher gross margin, cost savings, and cyberattack insurance recoveries. - **Cash Flow:** Operating cash flow was $687 million in the first nine months of 2025, up from $355 million in the same period last year, driven by higher cash earnings and lower tax payments. **Segment Performance:** - **Health and Wellness:** Sales increased by 3% YoY, driven by strong consumption and merchandising activities. Segment adjusted EBIT increased by 10%. - **Household:** Sales decreased by 11% YoY due to lower consumption and timing of shipments. Segment adjusted EBIT decreased by 18%. - **Lifestyle:** Sales decreased by 3% YoY. Segment adjusted EBIT decreased by 6%. - **International:** Sales decreased by 15% YoY, primarily due to the Argentina divestiture. Segment adjusted EBIT decreased by 18%. **Trends & Uncertainties:** - **Divestitures:** The company completed the divestiture of its Argentina and Better Health VMS businesses, which impacted sales and earnings. - **Cyberattack:** The company recovered from the August 2023 cyberattack, which had significant impacts on operations and results in fiscal year 2024. - **Macroeconomic Conditions:** The company continues to monitor macroeconomic conditions, including volatility in capital markets and developments in international trade policy. - **Future Operations:** The company will continue to invest in its brands, capabilities, and people to deliver consistent, profitable growth. **Impact on Future Operations:** - The company's financial condition and liquidity remained strong as of March 31, 2025. - The company believes it will have the funds necessary to support its short- and long-term liquidity and operating needs, including its digital capabilities and productivity enhancements investment and venture agreement terminal obligation. - The company anticipates the operating environment will remain volatile and challenging, but it will continue to invest in its brands, capabilities, and people to deliver consistent, profitable growth over time.