Please ensure Javascript is enabled for purposes of website accessibility

Clorox Posts an 18% Spike in Sales Volume

By Demitri Kalogeropoulos - Updated May 1, 2020 at 8:19AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

COVID-19 has put a premium on cleaning and disinfecting products.

Clorox's (CLX 2.07%) business is benefiting from an intense focus on cleaning and disinfecting surfaces. The company just announced earnings results for the fiscal third quarter, which included the start of major efforts to combat COVID-19 in economies like the U.S., China, and Europe. Sales and earnings trends shot higher due to the pandemic.

Specifically, organic sales volumes jumped 18%, mainly thanks to surging sales for its Clorox branded disinfecting wipes, sprays, and bleaches. That volume figure was flat in the previous quarter.

A person disinfects a kitchen counter.

Image source: Getty Images.

Earnings improved at an even faster pace, with gross profit margin jumping to 46.7% of sales from 43.4% a year ago. Clorox generated $806 million of operating cash in the past nine months, up 34% over the prior year period.

"Beyond the extraordinary growth in our disinfecting products," CEO Benno Dorer said in a press release, "we saw broad-based growth across all four segments as our portfolio is uniquely positioned to serve consumers in this unprecedented time."

The company raised its growth outlook to reflect what appear to be sustained demand increases for its cleaning products. Organic sales should rise by between 6% and 8% for the full year, translating into a significant upgrade from the prior forecast of a 1% uptick in fiscal 2020.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Clorox Company Stock Quote
The Clorox Company
$143.90 (2.07%) $2.92

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.