Source: Company reports/Coresight Research

Fiscal 4Q18 Results

Clorox reported fiscal 4Q18 revenues of $1.69 billion, up 2.7% year over year and below the consensus estimate of $1.72 billion. Diluted EPS was $1.66, above the consensus estimate of $1.58 and up 9.2% from the year-ago quarter. Full-year sales grew 2.5% to $6.12 billion from $5.97 billion. Overall sales grew by 2.7% during the quarter, and two of the company’s four business units saw sales increases during the period. For the year, all four of the business segments showed positive growth. Cleaning segment: Sales in 4Q increased by 3%, with growth driven by gains in the company’s largest business unit, Home Care. Within Home Care, Clorox Disinfecting Wipes grew sales by double digits in 4Q following a price increase. Full-year sales also grew 3%. Lifestyle segment: Sales in the Lifestyle segment—which includes dressings and sauces, water filtration and natural personal care—increased by 21% from the year-ago quarter, reflecting the acquisition of Nutranext. On a full-year basis, sales increased by 8%, largely reflecting the acquisition of Nutranext. Burt’s Bees: Sales for the quarter and for the year grew; the lip balm assumed the #1 market share position for the quarter and the total lip balm category for the first time, contributing to a record quarter in shipments for lip care. The company reported that its overall cosmetics launch is performing well in the market, and new liquid lipsticks are shipping and available in select stores. This form of lipstick comprises about 20% of the lipstick category today, and is growing at a double-digit rate.