The pandemic left many footprints.
It left us with deregulation of telehealth. It left us with the mainstream normalization of grocery delivery. It left us with masking as a normal social phenomenon in the West (it has been a normal part of daily life in the East for decades). It left us with revolutionary new technologies around vaccine development. And it left us with a far more urgent relationship with antimicrobial products.
For most of us, the notion of “the global human microbiome” wasn’t exactly tip of the tongue before 2020. When you consider the phrase, any educated person could more or less navigate to a rough approximation of what the phrase meant in 2019. But now, in a post-pandemic world, we all know exactly what it means and how relevant it can be to our daily lives.
That hypersensitivity has consequences. One of those consequences is the transformation of the disinfectant market into a high-tech target for growth investors.
The growth potential of the disinfectant products industry has experienced a significant boost in recent years, especially due to the global COVID-19 pandemic. The heightened focus on personal hygiene, sanitization, and infection prevention measures has led to increased demand for disinfectant products across various sectors.
However, it’s important to note that the growth potential of the industry, at this point, is no longer solely dependent on the pandemic, as the need for disinfection and sanitization measures existed prior to COVID-19 and will continue to be important in the post-pandemic world.
As with any industry, market conditions can fluctuate, and growth projections are subject to various factors. It is advisable to conduct further research and consult market reports or industry experts to obtain the most up-to-date and accurate information on the current and future growth potential of the disinfectant products industry.
That said, at this point, it may benefit active market participants to pay close attention to this space and evaluate it as an emerging technology space. Given the amount of recent investment that has targeted this industry, that’s no exaggeration.
With that in mind, we take a look below at some of the most interesting stories in the cutting-edge disinfectant marketplace.
Clorox Co. (NYSE:CLX) engages in the manufacture and marketing of consumer and professional products. It operates through its Health and Wellness, Household, Lifestyle, and International segments.
The Health and Wellness segment consists of cleaning products, professional products and vitamins, minerals and supplements mainly marketed and sold in the United States. The Household segments consists of bags and wraps, grilling products and cat litter marketed and sold in the United States. The Lifestyle segment refers to food, natural personal care products and water-filtration products marketed and sold in the United States. The International segment covers products sold outside the United States, excluding natural personal care products.
Clorox Co. (NYSE:CLX) recently reported results for the third quarter of fiscal year 2023, which ended March 31, 2023. Results included the facts that net sales increased 6% to $1.91 billion compared to a 2% net sales increase in the year-ago quarter. The net sales increase was driven largely by favorable price mix, partially offset by lower volume; organic sales were up 8%; gross margin increased 590 basis points to 41.8% from 35.9% in the year-ago quarter, due to the benefits of pricing and cost savings initiatives, partially offset by unfavorable commodity costs, and higher manufacturing and logistics expenses; and diluted net earnings per share (diluted EPS) decreased 241% to a loss of $1.71 from $1.21 in the year-ago quarter. This decrease includes a noncash impairment charge of $445 million ($362 million after tax or $2.92) in the Vitamins, Minerals and Supplements business and continued investments in the company’s long-term strategic digital capabilities and productivity enhancements (17 cents) as well as the implementation of the company’s streamlined operating model (13 cents).
“Our strong results this quarter reflect solid execution against our priorities to rebuild margin and drive top-line growth amid a challenging operating environment,” said CEO Linda Rendle. “We continue to take a broad set of actions to address persistent cost inflation, including pricing and cost savings efforts. At the same time, we remain committed to investing in our advantaged portfolio of leading brands, innovation pipeline, digital transformation and streamlined operating model to create a stronger, more resilient company. These strategic choices, supported by the superior value our brands offer consumers and the steps we’ve taken to further position our business for long-term, profitable growth, are working as planned and support our decision to raise our fiscal year 2023 outlook.”
Even in light of this news, CLX hasn’t really done much of anything over the past week, with shares logging no net movement over that period. CLX shares have been relatively flat over the past month of action, with very little net movement during that period.
Clorox Co. (NYSE:CLX) managed to rope in revenues totaling $1.9B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 5.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($242M against $2B, respectively).
Plandai Biotechnology Inc. (OTC US:PLPL) is a far more speculative name. But it’s worth paying close attention to right now. How many other stocks in this space have doubled in the past few days?
The key driver here is the reverse merger process that has repositioned PLPL from being dead money in the cannabis space to being very live money in the advanced disruptive disinfectant technology space. PLPL is now “ByoPlanet”. The deal is as a wholly owned subsidiary. But let’s be honest here: the deal is done and the business you get for a share of PLPL is ByoPlanet.
Plandai Biotechnology Inc. (OTC US:PLPL) just announced this morning that PLPL and Merck Animal Health are proud to announce a groundbreaking partnership with The United States Equestrian Federation (USEF) to advance animal health through innovative products and technologies.
“We are proud to partner with USEF and ByoPlanet to showcase our cutting-edge products and further our commitment to protecting the health and welfare of animals,” said Dr. Bryant Craig, associate director of scientific affairs for equine professional services and pharmacovigilance at Merck Animal Health. “ByoPlanet’s patented technologies paired with Merck Animal Health’s leading antimicrobic products has the potential to revolutionize pathogen control in the equine industry by providing enhanced protection for horses and giving peace of mind to their caretakers.”
According to the release, Byoplanet is the manufacturer of the most sophisticated electrostatic spray systems on the market.
When paired together with Merck Animal Health’s robust antimicrobial solutions, ByoPlanet’s patented technologies provide a comprehensive answer to enhancing pathogen control in the animal health space.
Plandai Biotechnology Inc. (OTC US:PLPL) CEO, Rick O’Shea, noted, “Our primary goal at ByoPlanet is to create a pathogen-free environment for all equine areas. Our advanced technology is designed to ensure that no surface remains untouched. In collaboration with Merck Animal Health, we are proud to drive forward innovation in technology and chemistry, all in the service of equine welfare.”
Henry Schein Inc. (Nasdaq:HSIC) engages in the provision of health care products and services to medical, dental, and veterinary office-based practitioners. It operates through the Healthcare Distribution and Technology and Value-Added Services segments.
The Healthcare Distribution segment includes consumable products, laboratory, small and large equipment repair services, branded and generic pharmaceuticals, vaccines, surgical, diagnostic tests, infection-control products, and vitamins. The Technology and Value-Added Services segment offers financial on a non-recourse basis, network, and hardware services. The company was founded by Henry Schein and Esther Schein in 1932 and is headquartered in Melville, NY.
Henry Schein Inc. (Nasdaq:HSIC) recently announced financial results for the first quarter ended April 1, 2023, including the facts that Q1 2023 net sales of $3.1 billion decreased 3.8% compared with first-quarter 2022, internal sales increased 6.3% in local currencies excluding sales of personal protective equipment (PPE) products and COVID-19 test kits, and Q1 GAAP diluted EPS came in at $0.91 compared with first-quarter 2022 GAAP diluted EPS of $1.30.
“We are pleased to report solid financial results for the first quarter of 2023 that are in-line with the expectations we provided at the beginning of the year and reflect the good earnings momentum in our underlying core businesses. Market trends stayed consistent with those we discussed during the previous quarter’s conference call, and as anticipated, our results continued to be impacted by decreased sales of PPE products and COVID-19 test kits. Excluding these product categories, we achieved strong internal sales growth of 6.3% in local currencies. Our financial results were also adversely impacted by acquisition related expenses and foreign exchange,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. “We are executing well on our BOLD +1 Strategic Plan, and the underlying fundamentals of our core business remain solid.”
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -9%.
Henry Schein Inc. (Nasdaq:HSIC) managed to rope in revenues totaling $3.1B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -3.7%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($126M against $2.2B, respectively).
Other key players with active exposure to the disinfectant marketplace include Merck & Co. Inc. (NYSE:MRK), Ecolab Inc. (NYSE:ECL), Kimberly-Clark Corp. (NYSE:KMB), Albemarle Corp. (NYSE:ALB), and Church & Dwight Co. (NYSE:CHD).
