Clorox is considering higher selling prices for its cleaning products as the company faces inflationary costs.
During an appearance on CNBC on Friday, CEO Linda Rendle told Jim Cramer that the bleach producer, whose sales have accelerated amid an ongoing health crisis, is facing higher costs in inputs such as resin and transport.
“We will activate our long-standing cost reduction program and make sure we deliver it to all of our businesses,” she said in “Mad Money”. “We are looking at the price increases, although we are very measured and take that in a category by category approach and of course we will focus on innovation and innovation that increases the margins.”
Rendle, who began leading Clorox in September, expects the inflationary environment to persist beyond the current quarter. She expects some costs to be waived as other temporary expenses related to Covid-19 decline as global economies recover.
The Federal Reserve has said it will not act to fight inflation until the labor market recovers losses from Covid-19 lockdowns.
“We’re focused on the long term,” Rendle said. “We will manage this difficult cost environment, but we are confident in our ability to accelerate profitable long-term growth.”
Clorox reported mixed results in the third quarter of its fiscal year on Friday morning. Revenue was flat compared to a year ago, after four consecutive quarters of double-digit growth boosted by the pandemic. The stock fell nearly 2% to $ 182.50 during the session.