Clorox (CLX) operates through four business segments: Cleaning, Household, Lifestyle, and International. In fiscal 2Q17, the Cleaning, Household, and Lifestyle segments reported higher sales, primarily driven by strong volumes. The International segment experienced higher volumes in fiscal 2Q17. However, its sales fell due to currency headwinds.
Clorox’s Cleaning segment is the largest in terms of sales. It accounted for 33.4% of the company’s fiscal 2Q17 sales. The Household, Lifestyle, and International segments accounted for 29.9%, 18.5%, and 18.2%, respectively, of the fiscal 2Q17 sales.
Consumer products manufacturer Procter & Gamble (PG) also has a significant international exposure, with operations in about 70 countries and products sold in more than 180 countries. Clorox and Procter & Gamble make up 1.0% and 12.0%, respectively, of the Consumer Staples Select Sector SPDR ETF (XLP).
Sales for the Cleaning segment rose 3.0%, driven by a 10.0% rise in volumes in fiscal 2Q17. The segment witnessed higher shipments across several Clorox-branded products, mainly in the home care and professional products categories.
Sales and volumes of the Household segment rose 12.0% and 11.0%, respectively, in fiscal 2Q17. The segment benefited from the ReNew Life acquisition and higher shipments for the charcoal category.
The Lifestyle segment had a 4.0% rise in sales on 5.0% volume growth in fiscal 2Q17. The segment saw increased shipments in the Burt’s Bees natural personal care business, driven by innovation in lip care and color. Also, shipments of bottled salad dressings rose in fiscal 2Q17 due to increased merchandising activities.
Sales for the International segment fell 2.0%. The favorable impact of a 2.0% rise in volumes and increased pricing were offset by 10.0 percentage points of currency headwinds.
In the next part of this series, we’ll take a look at Clorox’s margins.