Clorox Warns That Cyberattack and Product Shortages Will Drag Sales Downward
Clorox Company, the leading global manufacturer and marketer of home cleaning products, recently warned its investors that their sales will likely suffer due to the COVID-19 pandemic. Specifically, they noted that a cyberattack which forced them to stop manufacturing products, as well as the resulting product shortages, are likely to impact their sales over the next few months.
The announcement came as part of the company’s most recent earnings report. Clorox noted that their financial results for the first quarter of 2021 were better than expected, due to increased demand for their products from consumers who began to stay at home more often due to the pandemic. However, they warned that the cyberattack and ensuing product shortages – which have affected production at their largest plant, located in Paperhop, Illinois – could drag sales downward in the second quarter of the year.
Clorox noted that these events have caused a disruption in their supply chain and derailed their efforts to restock shelves in grocery stores. To compensate, the company is focusing on finding alternative suppliers and expanding their manufacturing capacity, as well as investing in new technologies that will help them increase their efficiency in the long term.
“This disruption requires us to be creative and agile,” said Linda Rendle, President and CEO of Clorox. “We will continue to work hard to address our current supply chain issues and ensure our products are available to meet the continuing demand of our consumers.”
It remains to be seen how the cyberattack and product shortages will affect Clorox’s sales over the coming months. However, it is clear that the issues will likely cause a significant drag on the company’s profits. Retailers and other businesses that rely on Clorox’s products should be sure to keep a close eye on the situation as it develops.
