The company completed the sale of its Argentina business on March 20, 2024, resulting in a pre-tax loss of $240 million. This move aligns with the IGNITE strategy, aiming to increase focus on core businesses for more consistent and profitable growth.

The company continues to implement its streamlined operating model, expecting completion in fiscal year 2024. Anticipated cost savings are projected to be $75 to $100 million annually, primarily benefiting selling and administration, supply chain, marketing, and R&D.

The company continues to invest in digital capabilities and productivity enhancements, with approximately $85 million in operating expenses incurred during the nine months ended March 31, 2024. This investment is expected to drive long-term growth and efficiency.

Following the August 2023 cyberattack, the company has transitioned back to automated order processing and experienced lessening operational impacts. Incremental expenses of $57 million were incurred during the nine months ended March 31, 2024, related to investigation and remediation.

Gross margin increased by 360 basis points in the current nine month period, driven by the benefit of pricing and cost savings. This demonstrates management's ability to execute on pricing strategies and cost control measures.

The company anticipates incurring approximately $30 to $40 million of costs in fiscal year 2024 related to the streamlined operating model. Once fully implemented, the company expects cost savings to be approximately $75 to $100 million annually.

The cyberattack in August 2023 resulted in wide-scale disruptions, order processing delays, and product outages. The incident also required taking certain systems offline and engaging third-party cybersecurity experts to support its investigation and recovery efforts.

The company continues to experience an inflationary environment marked by persistently unfavorable commodity costs and higher manufacturing and logistics costs. Additionally, the Company is monitoring macroeconomic conditions as a result of increased interest rates and volatility in capital markets.

The impact of continued inflationary pressures, macroeconomic conditions and geopolitical instability, including ongoing conflicts in the Middle East and Ukraine, rising tensions between China and Taiwan and actual and potential shifts in U.S. and foreign trade, economic and other policies, have increased global macroeconomic and political uncertainty.

Net sales and volume in the current three month period decreased by 5% and 4%, respectively, driven by lower shipments across the Lifestyle, Health and Wellness and Household reportable segments, primarily due to distribution losses resulting from the cyberattack.

Volume, net sales and segment adjusted EBIT decreased by 9%, 11% and 23% respectively, during the current three month period. The volume decrease was primarily due to competitive activity and distribution losses in Natural Personal Care and supply chain constraints in Food.

About 80% of the Company's sales are generated from brands that hold the No. 1 or No. 2 market share position in their categories.

Gross margin increased to 42.2% in Q3 2024, a 40 basis point increase YoY, and to 41.7% for the nine-month period, a 360 basis point increase. This improvement is primarily driven by pricing actions and cost savings initiatives, offsetting higher manufacturing and logistics costs and unfavorable foreign exchange rates.

The streamlined operating model is expected to enhance the Company's ability to respond more quickly to changing consumer behaviors and innovate faster. The Company anticipates the implementation of this new model will be completed in fiscal year 2024.

The Company has arranged for a global financial institution to offer a voluntary supply chain finance (SCF) program for the benefit of the Company's suppliers. The Company's current payment terms do not exceed 120 days in keeping with industry standards.

The company continues to invest in digital capabilities and productivity enhancements, with approximately $85 million in operating expenses incurred during the nine months ended March 31, 2024. This investment is expected to drive long-term growth and efficiency.

Research and development costs, both as a percentage of net sales and dollars, were essentially flat in both the current three and nine month periods as compared to the prior periods. The Company continues to invest behind product innovation and cost savings.

Following the August 2023 cyberattack, the company has transitioned back to automated order processing and experienced lessening operational impacts. Incremental expenses of $57 million were incurred during the nine months ended March 31, 2024, related to investigation and remediation.

There were no share repurchases of common stock during both the three and nine months ended March 31, 2024 and 2023, respectively.

Dividends per share declared and total dividends paid to Clorox stockholders were as follows for the periods indicated: Dividends per share declared $1.20 $1.18 and Total dividends paid 148 146

Net cash used for investing activities was $94 in the current nine month period, compared with $142 in the prior nine month period. The year-over-year decrease was mainly due to cash proceeds from the sale of the Argentina business, a sale-leaseback transaction and lower capital spending in the current nine month period.

The Company recorded liabilities totaling $28 as of both March 31, 2024 and June 30, 2023 for its share of aggregate future remediation costs related to these matters.

With respect to these proceedings, claims and other loss contingencies, while considerable uncertainty exists, in the opinion of management at this time, the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, either individually or in the aggregate, on the Company's condensed consolidated financial statements taken as a whole.

The Company is subject to The impact of Environmental, Social, and Governance (ESG) issues, including those related to climate change and sustainability on our sales, operating costs or reputation.

The company continues to experience an inflationary environment marked by persistently unfavorable commodity costs and higher manufacturing and logistics costs. Additionally, the Company is monitoring macroeconomic conditions as a result of increased interest rates and volatility in capital markets.

The impact of continued inflationary pressures, macroeconomic conditions and geopolitical instability, including ongoing conflicts in the Middle East and Ukraine, rising tensions between China and Taiwan and actual and potential shifts in U.S. and foreign trade, economic and other policies, have increased global macroeconomic and political uncertainty.

The impact of the changing retail environment, including the growth of alternative retail channels and business models, and changing consumer preferences, is a risk factor.