Clorox, whose wipes and other disinfectants have been practically flying off the shelves as shoppers search for ways to disinfect their homes during the pandemic, said consumers will continue to see a shortage of its wipes into 2021.
Linda Rendle, president of Clorox and soon to be its next CEO, made the announcement during an earnings call with analysts.
“Given the fact cold and flu (season) sits in the middle of the (fiscal) year, and we expect the pandemic to be with us for the entirety of the year, it will take the full year to get up to the supply levels that we need to be at,” Rendle said.
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Clorox is the world’s largest maker of disinfectant-cleaning materials, and many of its products have been approved by the Atlanta-based Centers for Disease Control and Prevention as disinfectants against the coronavirus.
Sales at Clorox jumped 22% in its most recent quarter, with millions of people growing more vigilant about cleaning routines in the pandemic. There was a 33% jump in sales within the company division that sells cleaning products.
Consumers have loaded pantries with disinfectant wipes and sprays, pushing overall sales up to $1.98 billion for the three months ended June 30. That is up from $1.62 billion a year earlier.
Analysts surveyed by Zacks Investment Research expected $1.86 billion.
Clorox posted a profit of $310 million, or $2.41 per share, better than the $2 per share Wall Street predicted.
During the call, Rendle said the company anticipates sales growth ranging from flat to low single digits, reflecting sustained demand through the first half of the year, and a deceleration in the back half, which would have a tough comparison to the initial months of the outbreak.
Clorox’s promotion of Rendle to CEO is effective Sept. 14. She replaces Benno Dorer, 56, who will keep his position as executive chairman. Dorer has been CEO since November 2014 and was appointed chair of the board in August 2016.
Earlier this year, Clorox and Cleveland Clinic announced a free online guide, “Six Building Blocks of a Robust Cleaning and Disinfection Program,” designed to help employers train personnel, select effective products, and develop cleaning and disinfection processes.
The two organizations are also collaborating with United Airlines to guide new cleaning and safety protocols.
Clorox employs more than 8,000 worldwide and posted fiscal year 2019 sales of $6.2 billion.
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