Clorox is considering higher shelf prices for its cleaning products as the company faces inflationary costs.
In a statement to CNBC on Friday, CEO Linda Randall told Jim Kramer that the bleach maker, whose sales have accelerated amid the ongoing health crisis, is facing higher costs for raw materials such as resin and transportation.
“We will activate our long-standing cost-saving program and ensure that we provide this in our business,” she told Mad Money. “We are looking at price increases, although we are very measured, and we are taking this into a category-by-category approach and, of course, we will focus on innovation and margin-specific innovation.”
Rendle, who took over Clorox in September, predicts that the inflation environment will continue beyond the current quarter. She expects some costs to be canceled as other temporary costs associated with Covid-19 fall away as global economies recover.
The Federal Reserve has said it will not take action to fight inflation until the labor market recovers losses from the blockade of Covid-19.
“We’re focused on the long term,” Rendle said. “We will cope with this difficult cost environment, but we are confident in our ability to accelerate long-term profitable growth.”
Clorox reported mixed results in its fiscal third quarter on Friday morning. Revenue is equal to a year ago, which comes after four consecutive quarters of double-digit growth stimulated by the pandemic. Shares fell nearly 2% to $ 182.50 during the session.