Feb 3 (Reuters) – Bleach maker Clorox missed market expectations for second-quarter profit on Tuesday, hurt by shoppers choosing cheaper alternatives to its cleaning products while it battled higher costs.
Budget-conscious consumers, who are feeling the heat of still-high inflation, have reduced purchases of branded floor cleaners and disinfecting sprays.
Its Household segment, the second largest by revenue and including products like bags, wraps and cat litter, saw its adjusted earnings before interest and taxes fall 54% in the quarter, due to higher manufacturing and logistics costs and lower net sales.
The maker of Pine-Sol cleaner has also recently entered the ready-to-eat market by launching protein-packed snack items, such as Hidden Valley Ranch Dippers & Toppers.
The company is in the process of acquiring Purell maker GOJO Industries for $2.25 billion as it tries to expand its position in health and hygiene segments as well.
On an adjusted basis, it earned a profit of $1.39 per share in the quarter, compared with estimates of $1.43 per share, according to data compiled by LSEG.
Its revenue decreased by 1% to $1.67 billion, from a year ago. Analysts expected it to decline 2.7% to $1.64 billion.
The company reaffirmed its annual net sales forecast of 6% to 10% fall and adjusted earnings per share target of $5.95 to $6.30.
It said the impact of order fulfillment challenges experienced earlier in the year, which led to consumption and market share losses, keeps expectations in the lower end of the range.
(Reporting by Koyena Das in Bengaluru; Editing by Vijay Kishore)
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