Clorox (NYSE: CLX) increased its full-year revenue outlook amid reporting its highest sales growth in over 20 years on Monday. Following the global coronavirus pandemic, demand for cleaning and disinfectant products have skyrocketed as people strive to outrun the virus.
Americans have increased the use of Glad trash bags and water filter devices in order to maintain the utmost cleanliness. Grilling has also surged, upping the company’s charcoal sales as people reduce the amount they eat out.
“Clorox just reported its best quarter since the start of the Covid-19 pandemic, which is saying a lot given how strong demand has been for its products throughout,” Barclays analysts wrote in a note.
Net profit was up 104% amounting to USD415 Million, or an adjusted USD3.22 a share. A much higher outcome than wall street analysts prediction of USD2.32 per share.
“We delivered another quarter of outstanding results to have a strong start to the fiscal year, with broad-based strength across our portfolio, driving double-digit sales growth in all reportable segments,” said CEO Linda Rendle in a statement.
In order to keep up with high demand, Clorox has kept production going non-stop as well as increasing third party suppliers. However, even with the round the clock work, it warned that grocery stores will not be fully stocked with its disinfecting wipes until 2021.
The company’s household division experienced the biggest growth with sales rising 39%. Clorox raised its 2021 adjusted earnings per share growth forecast 5% – 8% or USD7.70 to USD7.95.