CLX · CIK 21076
What The Clorox Company told the SEC could break it.
Clorox's disclosures describe a consumer-products maker squeezed at both ends of its supply chain. On the sell side, its customers are concentrated in a handful of mass retailers — Walmart alone was 27% of FY2025 net sales and the five largest customers nearly half — so lost shelf space, private-label shifts or pricing pressure would bite. On the buy side, it depends on numerous suppliers, some sole- or single-source, for key inputs like resin, sodium hypochlorite, non-woven fabrics and corrugated cardboard, and is highly exposed to swings in those commodity and transportation costs — including from new or increased U.S. and retaliatory tariffs.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- five largest customers ≈ half of net sales (Walmart 27%)high
Clorox's sales are concentrated in a small set of mass retailers — its largest customer, Walmart, was 27% of consolidated net sales in FY2025 and its five largest customers accounted for nearly half — so a shift to private label, loss of shelf space or pricing pressure from these customers could materially harm revenue.
“The Company's five largest customers accounted for nearly half of the Company's consolidated net sales for each of the fiscal years 2025, 2024, and 2023, and a significant portion of the Company's future revenues may continue to be derived from a small number of customers.”
SEC filing →As of 2025
Sole-source dependency
- sole/single-source raw-material suppliers (resin, sodium hypochlorite, non-woven, etc.)high
Clorox purchases raw materials from numerous suppliers, some of which are sole-source or single-source; interruptions in delivery of key inputs — resin, non-woven fabrics, sodium hypochlorite, corrugated cardboard, soybean oil, solvents and amine derivatives — could adversely impact the company.
“The Company purchases raw materials from numerous unaffiliated U.S. and international suppliers, some of which are sole source or single-source suppliers. Interruptions in the delivery of these materials could adversely impact the Company.”
SEC filing →As of 2025
Commodity & input dependence
- resin, sodium hypochlorite, soybean oil, corrugated, transportation & tariffsmedium
Clorox is highly exposed to price changes in commodities (resin, sodium hypochlorite, soybean oil, corrugated cardboard, amine derivatives) and transportation used in manufacturing/shipping — including from new or increased tariffs — partly hedged via supply and forward-purchase contracts.
“However, the Company is highly exposed to changes in the prices of commodities and transportation used in manufacturing and shipping of its products, including as a result of new or increased tariffs.”
SEC filing →As of 2025
Regulatory & policy
- US tariffs and retaliatory tariffs (China)medium
US tariffs (particularly affecting trade partners like China) and retaliatory tariffs by those partners — together with conflicts in Ukraine and the Middle East — have raised raw-material/commodity and logistics costs and increased macroeconomic uncertainty for Clorox.
“The Company has experienced, and expects to continue to experience, the indirect impacts of the conflicts in Ukraine and the Middle East, including increases in the cost of raw and packaging materials and commodities (including the price of oil), supply chain and logistics challenges, and it is not possible to predict the broader or longer-term consequences of these conflicts or the sanctions and export controls imposed in response to each conflict.”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“Net sales to the Company's largest customer, Walmart Stores, Inc. and its affiliates, were 27%, 25% and 26% of consolidated net sales for each of the fiscal years ended June 30, 2025, 2024 and 2023, respectively, and occurred across all of the Company's reportable segments.”
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