On this page of StockholderLetter.com we present the 10/5/2023 shareholder letter from CLOROX CO /DE/ — ticker symbol CLX. Reading current and past CLX letters to shareholders can bring important insights into the investment thesis.

 •  10/5/2023 Letter Continued (Full PDF)
 •  10/4/2024 CLX Stockholder Letter
 •  10/7/2025 CLX Stockholder Letter
 •  More "Consumer Goods" Category Stockholder Letters
 •  CLX Benford's Law Stock Score = 71

CLX 10/5/2023 Shareholder/Stockholder Letter Transcript:

WHAT
WE
see
2023 INTEGRATED ANNUAL REPORT
EXECUTIVE SUMMARY

TABLE OF CONTENTS
6C
  ompany Purpose & Strategy
7 Company Snapshot
20 Financial Performance
24 F  Y23 ESG Progress Snapshot
32 About this Report
STRENGTH IN NUMBERS:
FY23 AT A GLANCE
$7.4B
net sales
8,700
employees
100+
markets
25
country/territory
operations
80%
of portfolio is
#1 or #2 share brands
9 OUT OF 10
u.s. homes have
our products
60%
of portfolio with superior
consumer value*
* as measured by our consumer value metric

WE SEE
a
S rong,
resi ient
company
Guided by our IGNITE strategy, Clorox is positioned to succeed today
and in the future. Our brands have never been stronger, and thanks
to investments in our business we are creating stakeholder value
and delivering on our purpose to champion people to be well and
thrive every single day.
Clorox

2023 Integrated Annual Report Executive Summary

1

DEAR STAKEHOLDER,
Fiscal 2023 was a milestone year as we returned to growth and
expanded margins amid challenging operating conditions, all while
living our purpose and values.
Though we faced significant inflationary pressures, demand normalization and pockets of supply chain disruptions, we
went into the year committed to driving top-line growth and rebuilding margins while investing in the long-term health of
our brands, categories and capabilities. And, our team delivered just that. Furthermore, by playing to win in an increasingly
competitive marketplace, we continued to take the right steps to build a stronger, more resilient company and create longterm value for stakeholders.
This fiscal year we achieved record-high revenue.
Net sales increased 4%     within our long-term target
range     reflecting growth in three of our four reportable
business segments, supported by a resilient consumer
and improved supply chain performance. Despite
implementing several rounds of cost-justified pricing,
our categories held up well and we maintained total
company market share, underscoring the superior value
of our brands and the roles they play in consumers    daily
lives. While we are encouraged by the stability of market
share, we intend to grow share over time.
Gross margin expanded 360 basis points, primarily due to
pricing and record cost savings, and adjusted earnings per
share grew 24%. Consequently, cash flow from operations
increased 47%, enabling us to invest further in our business,
our brands and our people, while returning capital to
shareholders through a dividend increase.

TRANSFORMING OUR COMPANY THROUGH IGNITE
IGNITE continues to be the right strategy for our company,
balancing the delivery of short-term results with our longterm vision. The investments we   re making to develop
consumer-inspired innovation, strengthen our advantaged
the investments we   re making
to develop consumer-inspired
innovation, strengthen our
advantaged portfolio of
superior brands and transform
our company are reinforcing
our competitive advantage
and positioning us to drive
sustainable, profitable growth.   
portfolio of superior brands and transform our company
are reinforcing our competitive advantage and positioning
us to drive sustainable, profitable growth. At the same
time, IGNITE fully integrates our environmental, social and
governance considerations into our commercial plans and
business units to mitigate risks, increase resilience and
maximize opportunities and impact.
Fuel Growth: We leaned into our hallmark cost-savings
program and delivered savings above our IGNITE goal
of 175 basis point EBIT margin accretion. On top of that,
we generated incremental savings from our streamlined
operating model and its leaner operating structure. With
operational excellence, we made good progress on our
commitment to rebuild margin back to pre-pandemic
levels and fuel growth in our brands.
Innovate Experiences: Innovation is at the heart of our
company and how we deliver superior value experiences
through our brands. Our focus on bigger, stickier
innovation platforms that win in the market and create
multiyear value is yielding results as we   ve realized
significant incremental growth from innovation over the
past four years. In fiscal 2023, we launched innovations
across all our major brands, strengthening our ability
to fuel growth in the years ahead. At the same time,
we   re prioritizing investments in advertising and sales
Reimagine Work: We   re investing in our digital
transformation and new operating model to create a more
consumer-obsessed, faster and leaner company, and
maximize our ability to grow and operate more efficiently.
Our digital transformation, which will enable new ways of
working and put in place the capabilities and technology
to increase our speed and agility, is on track, and we   re set
to roll out our new enterprise resource planning platform
to our first region this fiscal year. In addition, the ongoing
implementation of our streamlined operating model
will allow us to be more responsive and closer to the
consumer while generating significant, ongoing annual
cost savings. These initiatives combined will put us on
a path to get administrative costs as a percent of sales
down to 13% over time.
Evolve Portfolio: We continue to see great opportunities to
strengthen our core and expand our business and brands,
and we have leaned into those opportunities through
targeted investments. The superior value of our brands
remains above pre-pandemic levels at 60%, a testament
to our strong, trusted brands and the value they deliver to
the consumer.
promotion to ensure we have valuable brands that
resonate with consumers. We hit an all-time high return
on our marketing investment in fiscal 2023, due in part to
our personalization efforts where we   ve nearly achieved
our 2025 goal to know 100 million consumers. Together,
these investments will enhance our value superiority at a
time when it matters most to consumers.
Clorox

2023 Integrated Annual Report Executive Summary

3



 10/5/2023 Letter Continued (Full PDF)