Linda Rendle, CEO of Clorox, told CNBC on Friday that the company had further increased the production of its disinfectant wipes to meet the increased demand from the global Covid crisis as early as the second year.
“We made about 1 million canisters of wipes in the last quarter and brought them to stores every day,” said Rendle at Closing Bell. “This quarter we have up to 1.5 million canisters per day and will continue to expand these when we bring new capacities online in the next few months.”
Consumers stocked up on various cleaning products during the pandemic, which, despite efforts to ramp up production, led to supply bottlenecks for items such as Clorox wipes. In December, Clorox chief operating officer Eric Reynolds told NBC News that the restricted availability may last until “mid-2021”.
Clorox has raised its full-year revenue forecast following its quarterly report earlier this month. The company now expects revenue to grow between 10% and 13% in fiscal 2021, after previously forecasting growth of 5% to 9%.
The number of coronavirus cases has been falling lately and Covid vaccines are becoming more and more accessible, leading to optimism that the acute phase of the pandemic will soon be over. For Clorox, Rendle said the rosier sales picture was partly due to a shift in people’s view of sanitation as a result of the health crisis.
“This is true here in the US, but really all over the world. People focus on cleaning and more on safety and wellbeing, not just on work,” said Rendle, who took over the management of the household goods manufacturer in September. She had served as President of Clorox.
Before the coronavirus pandemic, a trend in the detergent industry was a drive for greater sustainability and transparency. To this end, Clorox launched compostable cleaning wipes in January 2020. However, according to Rendle, production had to be halted due to Covid, as products that could be manufactured faster were given a higher priority.
“We will be bringing these compostable wipes back and we expect them to be a large part of our portfolio as we move forward,” she said.
Clorox shares fell 1.37% to $ 187.05 apiece on Friday. Based in Oakland, Calif., Its shares rose 13.5% over the past 12 months.