Clorox’s Profits Affected by a Cyberattack: Here’s What You Need to Know

Clorox, the consumer goods company, is dealing with the aftermath of a recent cyberattack that has impacted its earnings. The company released a statement in a regulatory filing explaining that certain systems had to be taken offline on August 14 due to unauthorized activity on its IT systems. As a result, Clorox had to implement manual ordering and processing procedures, leading to a decrease in operational efficiency.

At present, Clorox is facing challenges with consumer product availability. In the filing, the company stated, “The cybersecurity attack damaged portions of the Company’s IT infrastructure, which caused widescale disruption of Clorox’s operations. The Company is repairing the infrastructure and is reintegrating the systems that were proactively taken offline.”

Clorox anticipates that it will begin transitioning back to automated order processing during the week of September 25. The company has already resumed production at most of its manufacturing sites and expects a gradual return to full production. However, it is unable to estimate when normal operations will be fully restored.

In terms of the financial impact, Clorox is still evaluating the extent of the damage. Due to delays in order processing and increased product outages, the company believes that the impact on Q1 financial results will be significant. It is too early for Clorox to determine the long-term implications, including the fiscal year outlook, as the recovery process is ongoing.

It is worth noting that Clorox had previously experienced product shortages during the early stages of the COVID-19 pandemic when demand for cleaning supplies skyrocketed. By August 2020, the company was shipping almost 1 million packages of wipes per day.