Clorox (NYSE: CLX) recently closed its fiscal year and according to CEO Benno Dorer, it achieved the highest sales growth it has witnessed “in modern history.”
The manufacturer experienced a sales growth of 24% in the fourth quarter as its demand increased six-fold amid the coronavirus pandemic. Dorer mentioned that demand may not be met until 2021 but added that all its divisions had increased to double digits.
“We’re seeing broad-based strength, and it’s certainly in part function of the fact that our products and brands are serving so many more consumers today in the face of the pandemic and people staying at home, but we also are seeing much-improved core health fundamentals,” he said in an interview to Jim Cramer on “Mad Money.”
“We’re seeing growing market shares, we are seeing growing household penetration, we are seeing the percentage of our portfolio that is seen as superior in value by our consumers at an all-time high.”
The company’s stock has skyrocketed 50% throughout the year as it surpassed expectations for the April – June duration. Net sales amounted to USD1.98 Billion, a 22% increase from last year’s USD1.63 Billion. Furthermore net profit was USD310 Million, or USD2.41 a share, a 29% increase from the prior year. Wall Street analysts had predicted revenue of USD1.87 Billion and earnings of USD1.99 a share according to Factset.
Dorer will manage the century old company throughout the fourth quarter but has chosen to step down as of September 14. However, Dorer will maintain his position as executive chair on the board while Linda Rendle, president of Clorox, takes his place.
“We want to continue to play offense and we want to take a long-term view of this pivotal opportunity that we have now, and for that, it’s a really great opportunity and thing to have to have a CEO at the helm who has a long runway ahead of her,” Dorer said.
Written by Rebecca Urena.
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