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Clorox CEO Benno Dorer talks earnings, growth and ad spending

Clorox on Wednesday posted earnings that fell short of analysts' expectations, but saw revenue that topped forecasts. After the mixed earnings report, "Mad Money" host Jim Cramer said the conference call was very "downbeat," and invited the company's chief executive to "change the narrative."

Benno Dorer, Clorox's chairman and CEO, said he feels good about the business one quarter into the fiscal year, adding that Clorox has a lot of momentum and he plans to "stay the course." He said the highlight of the quarter was the company's top line growth, adding that Clorox has "a lot of growth in an environment where growth is so hard to come by."

Dorer said the company has shown 8 percent volume growth and 4 percent sales growth, which increases to 6 percent if calculated currency-neutral. He said Clorox has been able to convert 3 percent year-over-year sales growth into 3 percent earnings growth.

That increase comes afterfour consecutivequarters of earnings decline for the S&P 500.


Benno Dorer, CEO of Clorox.
Adam Jeffery | CNBC
Benno Dorer, CEO of Clorox.

The chief executive said the company will focus on balance and growing the business. He also wants to invest in Clorox's brand equities and innovation.

Although CFO Steve Robb said he doesn't expect Clorox's Renew Life brands to be a "needle mover" for the company, Dorer said he's loved that category since Clorox acquired it in May. The company believes Renew Life will add about 2 percent to its annual sales.

Clorox has also moved more than 40 percent of its working media spending to digital and online, Dorer said. He said he believes the company is at the leading level in the industry.

"We get very strong returns because digital and social allows us to give the right message to the right consumer at the right time and really engage consumers in two-way conversation," he said. "I expect for us to continue to shift investments into this arena over time."

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