Clorox Co (NYSE:CLX) reported sales growth of 27% and an increase in diluted net earnings per share (diluted EPS) of 103% for its first quarter of fiscal year 2021, which ended Sept. 30, 2020.
In the first quarter, sales increased 27%, driven by double-digit growth in eight of 10 business units due to COVID-19 and people spending more time at home. Additionally, sales results include one point of growth from the company's acquisition of a majority interest in its joint venture in the Kingdom of Saudi Arabia, offset by one point of unfavorable foreign currency exchange rates. On an organic basis, sales grew 27%.
The company's first-quarter gross margin increased 400 basis points to 48% from 44% in the year-ago quarter. The increase in gross margin — the eighth consecutive quarter of year-over-year gross margin expansion — reflects the benefit of strong volume growth, cost savings initiatives and favorable mix, partially offset by higher manufacturing and logistics costs.
Clorox delivered $3.22 diluted EPS, compared to $1.59 diluted EPS in the year-ago quarter, representing a 103% increase. Diluted EPS results reflect higher sales, gross margin expansion and a one-time non-cash gain from the remeasurement of the company's previously held investment in its Saudi joint venture. Excluding the impact of the acquisition, EPS grew 66%
"We delivered another quarter of outstanding results to have a strong start to the fiscal year, with broad-based strength across our portfolio, driving double-digit sales growth in all reportable segments," said CEO Linda Rendle.
CLX leaped $6.47, or 3.1%, to $213.72.
