The Clorox Company (CLX) Barclays 17th Annual Global Consumer Staples Conference summary

Fiscal 2024 performance and recovery

• Overcame a major cyberattack, fully restoring supply and customer service levels by year-end.

• Regained lost distribution, ending the year with more than before the disruption.

• Achieved flat organic sales for 2024, with significant improvement after an 18% Q1 decline.

• Delivered seventh consecutive quarter of gross margin expansion and double-digit earnings growth.

• Rebuilt operational strength, positioning for a challenging consumer environment in 2025.

Strategic portfolio actions and growth outlook

• Divested Argentina and VMS businesses, both dilutive to growth and margin, improving structural performance.

• Portfolio changes expected to add 0.5 points to growth and 50–75 bps to gross margin annually.

• Argentina divestiture reduced FX exposure, while VMS exit allows focus on core growth opportunities.

• Maintains 3%-5% sales growth target, supported by share gains, innovation, and strong brand investment.

• Expects category growth to rebound to 2%-2.5% after a temporary slowdown.

M&A strategy and learnings

• Success with Burt’s Bees attributed to alignment with core capabilities and clear value creation.

• VMS acquisition underperformed due to fragmented brands and fast-moving, fashion-driven category.

• Future M&A will focus on scalable brands in categories with long-term consumer tailwinds and strong economics.

• Open to both bolt-on and platform acquisitions, leveraging rebuilt financial flexibility.