- Consumer products company Clorox Co (NYSE: CLX) announced Linda Rendle has been promoted as the first female CEO of the company. And the quarterly results were also revealed.
Consumer products company Clorox Co (NYSE: CLX) made a few big announcements today. The company reported its quarterly earnings and the figures beat analyst expectations on revenue and income.
Clorox announced that Linda Rendle is being promoted to CEO from the president of the company, effective September 14, 2020. Prior to becoming president of Clorox, Rendle was EVP of cleaning, international strategy, and operations. Rendle is the company’s first female CEO in company history.
Rendle started her career at Procter & Gamble. Every other Clorox CEO started their careers at P&G. Clorox ended up getting separated from P&G in 1969 due to an antitrust ruling by the U.S. Supreme Court.
Current CEO Benno Dorer will continue to serve as the executive chair of the board. Rendle has been at Clorox for about 17 years. Dorer has been CEO of Clorox since November 2014 and chairman since August 2016.
Financial Results
Sales for the quarter also increased by 22% compared to the same period a year ago. The earnings per share was $2.41 and that is up 28% compared to the same period last year. This beat estimates by about $1.99 per share.
All of Clorox’s reportable segments saw double-digit sales growth compared to the same period a year ago. The Household segment — which includes bags and wraps — jumped 17%. And the Lifestyle segment saw a 16% increase from products like water filtration and personal care. International sales increased by 24% on a currency-neutral basis. Clorox Co’s products include Clorox wipes and bleach, Kingsford charcoal, Hidden Valley salad dressing, Brita water filters, and Glad.
Clorox is also partnering with companies like United Airlines Holdings and theater operator AMC Entertainment to help them navigate sanitation processes during the COVID-19 pandemic.
Clorox did not provide financial guidance for the upcoming fiscal 2021 due to economic uncertainties. But Clorox indicated that sales are expected to be flat with low single-digit increases for the next fiscal year.
KEY QUOTES:
“I’m delighted that our dedication to thoughtful, long-term succession planning positioned us to appoint such a strong and capable leader as Linda Rendle to the CEO role. Linda will be an excellent CEO, building on her track record of outstanding business results, her strong oversight of the development of the company’s IGNITE strategy, and her values-led leadership. Benno has done a tremendous job leading the company through its 2020 Strategy with significant advancements in innovation, superior consumer value, digital consumer engagement, company culture and ESG. During this time, the company has more than doubled total shareholder return while delivering good growth – growth that is profitable, sustainable, and responsible. The company is operating effectively during this pandemic, and I’m pleased that Benno will continue to provide strategic guidance as executive chair while he turns toward personal philanthropic activities.”
— Pamela Thomas-Graham, lead independent director of the board
“I’m proud of what we have accomplished as a team for our shareholders and all stakeholders, including our employees, consumers, and communities. With a healthy business, so much opportunity for continued good growth and a successor who is ready to lead this company, it’s the right time for the board to appoint Linda as CEO. Linda has an outstanding track record of achieving results, deep business and functional experience and is the architect of our IGNITE strategy. Clorox has a significant, ongoing opportunity to continue helping protect the health and wellness of our communities, and we are confident this is an appropriate time to transition to a CEO with a long runway and the skills to deliver on the opportunity ahead. Clorox will be in good hands as I pursue my passion for philanthropy in support of youth, sustainability, and art.”
— Benno Dorer
“I love this company and our people around the world who have become like family over the past 17 years. I am thrilled with this opportunity to lead The Clorox Company, building on our accomplishments and growth under Benno’s strong leadership. With our IGNITE strategy, we are positioned to accelerate growth on the strength of innovation, digital transformation, and continued culture change as we become simpler, faster, and bolder. And, we continue to have a significant role supporting public health, given the ongoing needs and changing behaviors of our consumers and communities. I step into this role with great optimism for the future of our company and global portfolio of trusted brands, and immense confidence in our talented and passionate people around the world.”
— Linda Rendle
