Clorox has warned investors that its sales could be dragged downward due to the ongoing coronavirus pandemic, which has disrupted its supply chain and led to a malicious cyberattack.
With the coronavirus pandemic continuing to hamper business across the world, many companies have been forced to confront significant challenges that could affect profitability. Clorox, the US-based consumer goods giant, is the latest to report potential issues due to the virus.
In a statement released to coincide with its Q1 FY2020 earnings report, Clorox mentioned that it expects a “challenging” environment for the remainder of the year, with sales growth likely to be negatively impacted by product shortages and cyberattacks.
Clorox was hit by a malicious attack in late April of this year, with hackers accessing its networks and exploiting customer data. Although the company was able to contain the breach, it had to take some systems offline while the situation was investigated, causing disruption for some customers.
As well as warning of the malicious attack, Clorox said it was experiencing product shortages due to “ongoing constraints in the global supply chain,” noting that this was impacting its ability to fulfill orders for products such as disinfectants and disinfecting wipes.
The company warned that as a result of these issues, it was expecting to experience a reduction in quarterly sales in the quarters ahead. It also said that it was continuing to look for ways to address the constraints in its supply chain and mitigate the impact of the cyberattack.
Clorox’s cautionary announcement is the latest sign of the ongoing disruption caused by the coronavirus pandemic. With many companies facing similar issues, it is clear that there is a long road ahead as businesses work to get back on their feet.