Supplement sales helped drive gains in Clorox’s lifestyle segment in Q4

By Adi Menayang contact

- Last updated on GMT

iStock / G0d4ather
iStock / G0d4ather

Related tags: Clorox, Collagen, Probiotics

The Clorox Company dived deeper into the supplements space when it bought portfolio company Nutranext earlier this year. How did it affect its Q4 results?

“In our lifestyle segment, Q4 sales increased 21%, reflecting gains from the Nutranext acquisition. And on a full year basis, sales increased 8%, largely reflecting the benefit of Nutranext,”​ reported Lisah Burhan, VP of investor relations for The Clorox Company during its Q4 earnings call this week.

Clorox’s lifestyle segment includes dressings and sauces (Hidden Valley), water filtration (Brita), natural personal care (Burt’s Bees), and dietary supplements, which includes probiotic brand Renew Life and the former Nutranext brands.

It acquired Nutranext in March this year​ for $700 million, which added the brands NeoCell, Rainbow Light, Sedona Labs, and Natural Vitality. The acquisition also diversified Clorox's reach in terms of channels, as some of the brands were direct-to-consumer and online exclusive.

For all segments, Clorox saw its Q4 sales grow by 3%, which, SVP and CFO Kevin Jacobsen attributed to “three points of benefit from Nutranext acquisition” ​during the call.

Gross margin decreased 170 basis points to 44% from 45.7% in last year’s Q4—this included 60 basis points of negative impact from costs related to the Nutranext acquisition.

CEO and chairman Benno Dorer said that he remains confident in the long-term outlook for the company’s health and wellness ventures.

“We continue to anticipate about three points of growth from the newest member of our portfolio, the Nutranext vitamins and dietary supplement business where integration is progressing in line with expectations,”​ he added.

“From a channel perspective, including Nutranext, e-commerce is now estimated at 6% of company sales and we anticipate growing strongly in this channel again in fiscal year 2019 to an estimated 8% of company sales.”

Related news

Show more

Related products

show more

HRB are ideal probiotics for human health

HRB are ideal probiotics for human health

Morinaga Milk Industry Co., Ltd. | 20-Nov-2019 | Technical / White Paper

Evidence is accumulated that the physiological benefits of probiotics bifidobacteria are not only strain-specific but also dependent on their residential...

B. breve B-3 – the weight management probiotics

B. breve B-3 – the weight management probiotics

Morinaga Milk Industry Co., Ltd. | 20-Nov-2019 | Clinical Study

Morinaga Milk’s Human-Residential Bifidobacteria (HRB) probiotics possess superior physiological benefits and are typically well-suited for human consumption....

Related suppliers

Follow us

Featured Events

View more

Products

View more

Webinars