Clorox Company (The)

quarter fiscal year 2024 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 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. Lisa Burhan, Vice President of Investor Relations for the Clorox Company. Ms. Burhan, you may begin your conference.

Thank you, Jen. Good afternoon and thank you for joining us. On the call today with me are Linda Rendell, our CEO, and Kevin Jacobson, our CFO. I hope everyone has had a chance to review our earnings release and prepared remarks, both of which are available on our website. In just a moment, 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 2024 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 has 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. Now, I'll turn it over to Linda.

Hello, everyone, and thank you for joining us. We entered fiscal year 2024 with momentum, supported by strong progress on our priorities over the past several quarters to maintain top line growth while rebuilding margin. Prior to the August cyber attack, our performance was on track with our expectations, with solid consumption and market share trends, including improving volume consumption as we lapped year-ago pricing actions. This is a testament to the strength and superior value of our brands and the role they play in our consumers' daily lives. In addition, we continue to realize benefits from our margin-enhancing initiatives, including pricing, cost savings, and supply chain optimization. However, The cyber attack caused wide scale operational disruptions, which adversely impacted our first quarter financial performance. While we're not yet back to normal, we are now on a solid path to operational recovery, but this will take some time. We're laser focused on our immediate priorities of rebuilding retailer inventories as quickly as possible, preserving merchandising activity, and improving our distribution to return to the trajectory we were on prior to the cyber attack. We've proven that we can execute and rebuild inventories, earn back our shelf space and distribution, and regain and ultimately drive share growth over time, just as we did coming out of the pandemic, when we restored supply following extraordinary demand for our products. We're confident our ability to do so again, given the strength and superior value of our brands, the relevance of our Ignite strategy, and the relentless focus of our teams on executing with excellence to win in the marketplace. As we navigate the near term, we remain committed to our long-term strategies for growing the top line and rebuilding margins. which includes investing in innovation and brand building, driving our hallmark cost savings program, and advancing our digital transformation and streamline operating model. Looking ahead, the disruption of the last few months does not change the Clorox story. As we execute on our recovery efforts, we're confident that our portfolio of leading brands and essential categories and our Ignite strategy will enable us to regain market share and deliver consistent, profitable growth over time. With that, Kevin and I will take your questions.