September 20, 2023: Clorox, the maker of household cleaning products, has warned that a cyberattack in August will have a “material” impact on its first-quarter financial results. The company disclosed the attack in a regulatory filing on Monday, September 18.
The filing said the attack caused a “widescale disruption” of Clorox’s operations, including its manufacturing, distribution, and sales systems. The company said it is still recovering from the attack and cannot estimate how long it will take to resume normal operations fully.
Clorox said the attack has already caused delays in order processing and product outages. The company said that it expects these disruptions to continue in the first quarter, which could significantly impact its financial results.
Clorox’s shares fell by more than 5% in after-hours trading on Monday following the disclosure of the cyberattack. The company’s stock is down by more than 20% year-to-date.
Impact on Q1 Results
Clorox has not yet provided specific guidance on how much the cyberattack will impact its first-quarter results. However, the company expects the impact to be “material.”
Analysts estimate the attack could reduce Clorox’s first-quarter revenue by $50 million to $100 million. The attack could also reduce Clorox’s first-quarter earnings by $0.10 to $0.20 per share.
Clorox said it is working with cybersecurity experts to recover from the attack and prevent future attacks. The company said it has already taken steps to improve its cybersecurity posture, including hiring new staff and implementing new cybersecurity technologies.
Clorox said it also works with its customers and suppliers to minimize the attack’s impact. The company said that it is committed to meeting its customer demand and working to restore its operations as quickly as possible.
The cyberattack is a setback for Clorox, which faces several challenges, including inflation and supply chain disruptions. The company has also been struggling to grow its sales in recent years.
The cyberattack could make it more difficult for Clorox to achieve its financial goals in the first quarter and the entire year. However, the company has a strong track record of recovering from challenges. Clorox is also a well-established brand with a loyal customer base.
The cyberattack on Clorox is a reminder of the growing threat of cyberattacks to businesses of all sizes. Companies need to take steps to protect themselves from cyberattacks and have a plan to recover from an attack if it does occur.