The Clorox Company

Good day, ladies and gentlemen, and welcome to the Clorox Company Fiscal Year 2027 First Quarter Earnings Release Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question and answer session. If you would like to ask a question, you may press star 1 on your touchstone pad at any time. If anyone should require assistance during the conference, please press the star 0 on your touchstone pad at any time. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Ms. Lisah Burhan, Vice President of Investor Relations for the Clorox Company. Ms. Burhan, you may begin your conference.

Thank you, Jen. Good afternoon, everyone, and thank you for joining us. On the call with me today are Linda Rendle, our Chair and CEO, and Luc Bellet, our CFO. Please note that our earnings release and prepared remarks are available on our website at thecloroxcompany.com. Linda will share a few opening comments, and then we'll take your questions. During this call, we may make forward-looking statements, including about our fiscal year 2027 outlook. These statements are based on management's current expectations, but may differ from actual results or outcomes. In addition, we may refer to certain non-GAAP financial measures. Please refer to the forward-looking statement section which identifies various factors that could affect such forward-looking statements which have been filed with the SEC. In addition, please refer to the non-GAAP financial information section of our earnings release and the supplemental financial schedules in the investor relations section of our website for reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. I'll now turn it over to Linda.

Thanks, Lisa, and thank you for joining us today. We entered fiscal year 27 focused on steadily improving performance and market share while navigating continued input cost pressures. We made good progress in the first quarter, delivering better than expected results through strong execution and some favorable timing benefits. Importantly, the underlying trajectory of the business continues to move in the right direction, with steady progress in organic sales growth and market share. At the same time, we continue to advance the priorities that will strengthen our performance over time. We are improving superiority and innovation across our portfolio, integrating Gojo to unlock the full potential of Clorox Purell ProCare, continuing to evolve our portfolio, and advancing our transformation efforts from a period of significant investment toward one of optimization and value creation. Together, these priorities are focused on building a stronger business that delivers more consistent, profitable growth. While we are encouraged by the start to the year, we recognize that the operating environment remains challenging and uncertain. Consumers continue to seek value, competitive activity remains elevated, and increased commodity and transportation costs are putting additional pressure on margins. We have a strong track record of managing cost pressures, and we're taking balanced actions to mitigate their impact while continuing to invest in improving our top-line trajectory. The pace of that improvement will be driven in large part by our continued progress on superiority. Our updated outlook reflects these realities, along with the actions we're taking to mitigate their impact. Our focus remains on strengthening brand superiority, improving the consistency of our performance, and creating sustainable value over time. As you saw in our announcement on Thursday, the board has appointed Fabian Garcia as Clorox's next CEO. Through the process, I've had the opportunity to get to know Fabian, and I've been impressed by both his experience and his perspective on our business. He is an accomplished global consumer products leader with a strong track record of building brands, evolving portfolios, developing talent, and delivering discipline growth. Between now and January, I remain fully focused on executing our strategy, delivering our commitments, and maintaining momentum while supporting a smooth transition and helping Fabian hit the ground running. With that, we'll open the line for questions.