CLX - Clorox

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Clorox sells a variety of consumer staples products, including cleaning supplies, laundry detergents, trash bags, cat litter, charcoal, food dressings, water-filtration products, and natural personal-care products.

Clorox has tremendous brand strength. More than 80 percent of the company’s sales are generated from brands that hold the number 1 or 2 market share positions in their categories.

SWOT Analysis

Strengths

Clorox has significant competitive advantages including strong brands, economies of scale, outstanding management, an adapting product line, and barriers to entry. Economies of scale allow Clorox to keep margins above average. Profitable long term relationships with retailers translates into loyalty and prime shelf space that makes it harder for competitors to grab market share.

Weaknesses

The household and personal products industries are mature markets with a great deal of competition. Low growth rates make it difficult to grow earnings without adding new products through innovation or acquisition.

Nearly 50% of Clorox business is derived from five retailers including approximately 25% coming from Wal-Mart alone. This means the company has limited pricing power because retailers are squeezing suppliers for lower prices in this competitive environment.

Opportunities

Clorox is bringing new products to market that are considered value-added as well as extensions to current product lines. New Bert’s Bees Face and Body products, Control Bleach Crystals, Pump N’ Clean Products, Light Weight Charcoal, OderShield and Force Flex bags, ScrubSingles, Triple Action Dust Wipes, Urine Remover, and Clorox Pool Products are examples of how Clorox is using opportunities to grow revenues.

Acquisitions provide additional sales channels that while still remaining true to their core businesses. The objective is to invest in markets that provide higher growth potential.

Threats

A major threat is private label growth as retail customers become more savvy shoppers and price conscious. The competitive environment allows for retailers to ask for lower prices and consumers to trade down to cheaper alternatives.


Histórico:

Tech bubble:

Crise de 2008:

Descorrelação com o S&P500 no geral:

Pandemia 2020 (produtos de higiene doméstica “bombaram” no auge da crise):


EPS:

PE:

Resumo:

  • Atua num setor altamente defensivo, com produtos de necessidade básica, gerando boa descorrelação com a “bolsa em si”.
  • Boa parte dos produtos é líder, ou segundo lugar, em vendas.
  • Empresa com longo histórico de crescimento e pagamento de dividendos.

(Sim… é o mesmo resumo de CHD :grin:)

Junto com Hormel é a parte mais defensiva da minha carteira de investimentos no exterior.

7 Curtidas

É bem isso mesmo, ela também faz parte da minha defesa; junto com CHD e PG. Ótimo ativo. É também uma das marcas mais amadas pelos americanos, pelo que vi, o pessoal lá confia muito na marca.

1 Curtida

Top 6 hein… :star_struck:

1 Curtida

Balanço parece que veio ruim ação tá caindo 11% :flushed:

Clorox Provides Fiscal Year 2022 Outlook

  • 2% to 6% decrease in sales (2% to 6% decrease in organic sales)
  • $5.05 to $5.35 diluted EPS range (9% to 4% decrease versus year ago)
  • $5.40 to $5.70 adjusted EPS range (26% to 21% decrease versus year ago)
    Excludes the strategic investment in digital capabilities and productivity enhancements detailed below.
  • Gross margin down by 300 to 400 basis points

Starting in fiscal year 2022, Clorox expects to invest approximately $500 million over the next five years, including about $90 million in fiscal year 2022, in its digital capabilities and productivity enhancements. This investment will include replacing the enterprise resource planning system, which will generate efficiencies and better position the company in supply chain, digital commerce, innovation and brand building over the long term. Of the $90 million to be invested in fiscal year 2022, about $55 million, or 35 cents, will flow through to the profit and loss statement, mostly in selling and administrative expenses.

The company’s outlook reflects the following current assumptions:

Clorox’s 2022 fiscal year sales are projected to be down 2% to 6%, reflecting lower sales in the first half – from the high single digits to low double digits – due to comparisons to 27% sales growth in the first half of fiscal year 2021. In the second half of the fiscal year, sales are expected to normalize toward the lower end of the company’s long-term sales growth target of 3% to 5%. The company expects the largest factor impacting its sales performance in fiscal year 2022 to be consumer demand, which remains uncertain. Fiscal year organic sales are projected to be down 2% to 6%.

Gross margin for the fiscal year is expected to be down 300 to 400 basis points, primarily due to higher commodity costs and manufacturing and logistics costs, most notably in transportation. These headwinds are expected to be more pronounced in the first quarter, when the company will also be lapping modern record gross margin with higher manufacturing fixed-cost absorption. The company expects sequential improvement in gross margin over the course of the fiscal year, with the assumption of a return to gross margin expansion in the fourth quarter. This assumption is based on the expectation that cost inflation will begin to moderate and that mitigating actions put into place will begin to flow through results.

Advertising and sales promotion spending for the fiscal year is anticipated to be about 10% of sales. This amount is a reflection of the company’s ongoing commitment to invest behind its brands.

Fiscal year selling and administrative expenses are expected to be approximately 15% of sales, about 1% of which is for the planned investments in digital capabilities and productivity enhancements.

The company’s effective tax rate is projected to be between 22% and 23%. The year-over-year increase primarily reflects lapping several one-time benefits in the prior fiscal year.

Net of these factors, Clorox anticipates fiscal year 2022 diluted EPS to be between $5.05 and $5.35, a decrease of between 9% and 4%, respectively. Adjusted EPS is projected to be between $5.40 and $5.70, a decrease of between 26% and 21%, respectively. Starting in the first quarter, adjusted EPS will exclude the long-term strategic investment in digital capabilities and productivity enhancements to provide greater visibility into the underlying operating performance of the overall business.

“I’m pleased that we delivered another strong sales year in a highly volatile environment,” said Chief Financial Officer Kevin Jacobsen. “We’re addressing near-term headwinds head on, prioritizing strong execution of the plans we have in place to rebuild our margins, including pricing in key areas of our portfolio as well as our hallmark cost savings program. At the same time, we’re supporting the long-term health of our business, with strong investments behind our brands and to further enhance our capabilities to deliver superior consumer value and sustainable growth.”