Delivers internet gross sales of $5.0 billion on 1 p.c natural gross sales expansion
Effects and outlook mirror sturdy in-market execution, efficient value control and productiveness

DALLAS, Oct. 22, 2024 /PRNewswire/ — Kimberly-Clark Company (NYSE: KMB) nowadays reported 3rd quarter 2024 effects pushed through market-leading intake expansion from pioneering, leading edge fresh merchandise, and leveraging sustained productiveness momentum.

“Our third quarter results reflect strong execution across the business as we transform our organization,” stated Kimberly-Clark Chairman and CEO, Mike Hsu. “I’m very proud of our teams’ ability to deliver organic top-and-bottom-line growth, driven by market share gains and improved productivity, even against the backdrop of a dynamic consumer environment.”

Hsu persisted, “With our Powering Care strategy in full swing, we are accelerating our innovation pipeline and reducing costs to deliver higher-quality consumer solutions for every price point, and simplifying our operational structure so that we can be faster and more responsive in our markets. We are on track to deliver strong operating profit, margin, and EPS growth in 2024 while investing to maintain our business momentum into 2025.”

Quarter Highlights

• Internet gross sales of $5.0 billion have been indisposed 4 p.c, with natural gross sales expansion of one p.c as opposed to the prior yr.
• Reported rude margin was once 36.0 p.c, adjusted rude margin was once 36.7 p.c, up 90 foundation issues as opposed to the prior yr, pushed through sturdy rude productiveness good points.
• Diluted income in step with proportion have been $2.69; adjusted income in step with proportion have been $1.83, up 5 p.c as opposed to prior yr together with a $0.07 year-on-year headwind from foreign money translation.

3rd Quarter 2024 Effects

3rd quarter gross sales of $5.0 billion have been 4 p.c not up to the prior-year duration, together with unfavorable affects of roughly 3 p.c from foreign currencies translation and roughly 1 p.c from the divestiture of the Okay-C Skilled Private Protecting Apparatus (PPE) industry finished in July 2024. Natural gross sales higher 1 p.c, pushed through a 1 p.c build up in value pace quantity and blend have been in layout with a yr in the past. Value-led good points mirrored essential pricing movements to handle upper native prices in hyperinflationary economies, basically in Argentina. Quantity and blend have been certain in Advanced Markets (representing Australia, South Korea and Western/Central Europe) offset through a fade in North The usa pace volumes in Growing and Rising (D&E) markets have been in layout with yr in the past.

In North The usa, natural gross sales lowered 1 p.c as opposed to the prior yr, pushed through a  3 p.c fade in Okay-C Skilled and 1 p.c in Shopper Tissue pace Private Aid was once in layout with yr in the past.

In D&E markets, natural gross sales rose 8 p.c reflecting pricing good points basically in hyperinflationary economies.  Natural gross sales for Advanced Markets have been 2 p.c decrease, pushed through decrease pricing that basically mirrored comparisons with transient, power surcharge-related value will increase in Western Europe within the prior-year duration partly offset through low unmarried digit quantity led good points.

3rd quarter running benefit was once $1.2 billion, together with $565 million of good points from the divestiture of the PPE industry. Adjusted running benefit higher through 5 p.c regardless of an unfavourable affect of four proportion issues from foreign money translation that was once basically pushed through hyperinflationary economies. Aside from foreign money affects, expansion in adjusted running benefit mirrored rude productiveness good points, slightly impartial pricing internet of value inflation, provide chain linked investments, in addition to deliberate will increase in advertising, analysis and normal bills.

Internet passion expense was once $49 million as opposed to $56 million within the prior-year.

The 3rd quarter efficient tax charge was once 20.5 p.c. On an adjusted foundation, the efficient charge within the 3rd quarter was once 22.7 p.c in comparison to 22.5 p.c within the prior yr.

Internet source of revenue of fairness firms was once $48 million in comparison to $50 million within the prior-year duration.

Diluted EPS was once $2.69 on a reported foundation and incorporated a favorable $1.34 affect from the sale of the PPE industry, a unfavorable $0.31 affect from prices linked to the corporate’s Transformation Initiative and a unfavorable $0.17 affect from impairment of intangible property. On an adjusted foundation, EPS higher 5 p.c to $1.83, pushed basically through the 5 p.c build up in adjusted running benefit.

Presen-To-Month Effects

For the primary 9 months of the yr, gross sales of $15.1 billion lowered 2 p.c together with unfavorable affects of roughly 4 p.c from foreign currencies translation and roughly 1 p.c from divestitures. Natural gross sales grew 4 p.c, pushed through an roughly 2 p.c build up in value, basically in hyperinflationary economies, 1 p.c from favorable product combine and 1 p.c build up in quantity.

Presen-to-date running benefit was once $2.7 billion, together with $565 million of good points from the divestiture of the PPE industry, and $359 million of prices linked to the corporate’s transformation initiative.

Presen-to-date adjusted running benefit was once $2.6 billion as opposed to $2.3 billion within the prior yr. This was once an build up of 12 p.c as opposed to prior yr together with an unfavourable affect of 8 proportion issues from foreign money translation, basically pushed through hyperinflationary economies. Aside from foreign money affects, the expansion in adjusted running benefit was once pushed through a mixture of natural expansion and powerful productiveness financial savings that have been partly offset through enter value inflation, basically in D&E markets, provide chain linked investments, affect of divestitures and deliberate will increase in advertising, analysis and normal bills.

In the course of the first 9 months of the yr, diluted income in step with proportion have been $6.21 in 2024 in comparison to $3.70 utmost yr. Presen-to-date adjusted income in step with proportion have been $5.80 in comparison to $5.06 utmost yr.

Industry Department Internet Gross sales Effects

Private Aid Department

Private Aid gross sales of $2.6 billion lowered 2 p.c within the quarter, pace natural gross sales higher 3 p.c from a mixture of pricing movements in hyperinflationary economies in addition to combine good points pace quantity was once in layout with yr in the past throughout all markets. Product innovation and cast industrial execution ended in Child and Kid Aid gaining world weighted marketplace proportion on a year-to-date foundation. 

3rd quarter running benefit of $482 million lowered 4 p.c pushed through a step up in promoting funding partly offset through optimization in overheads pace rude benefit was once widely in layout with yr in the past.

Shopper Tissue Department

Shopper Tissue gross sales of $1.5 billion lowered 2 p.c, with a fade in natural gross sales of one p.c. Natural fade was once pushed through store stock discounts in North The usa in addition to anticipated decrease pricing in Western Europe because of lapping of transient pricing linked to power surcharges within the prior yr duration.

3rd quarter running benefit of $265 million lowered 1 p.c, with rude productiveness good points offset through upper production prices and higher promoting ranges.

Okay-C Skilled (KCP) Department

KCP gross sales of $767 million lowered 10 p.c because of divestitures and industry exits in addition to unfavourable foreign money affects. Natural gross sales lowered 1 p.c pushed through 1 p.c unfavourable value affect because of lapping of power surcharges in Western Europe.

3rd quarter running benefit of $161 million lowered 4 p.c basically impacted through the divestiture of the PPE industry, underlying running benefit benefited from productiveness good points partly offset through quantity softness.

Money Wave and Stability Sheet

Presen-to-date money supplied through operations was once $2.4 billion in comparison to $2.3 billion utmost yr pushed basically through more potent running effects. Presen-to-date capital spending was once $512 million in comparison to $549 million utmost yr. The corporate returned $2.0 billion to shareholders via dividends and repurchases of regular hold. Overall debt was once $7.5 billion as of September 30, 2024, indisposed from $8.0 billion as of December 31, 2023.

2024 Outlook

In line with its year-to-date effects, the corporate has up to date its 2024 outlook, with all elements in comparison to 2023, as follows:

Natural Internet Gross sales are anticipated to develop between 3%-4% as opposed to a mid-single digit charge prior to now, basically reflecting discrete headwinds from adjustments in retail stock ranges. Reported Internet Gross sales are nonetheless anticipated to be negatively impacted through 400 foundation issues of foreign money translation and 120 foundation issues from divestitures.

Adjusted Working Benefit and Adjusted Profits In step with Percentage are nonetheless anticipated to develop at a mid-to-high teenagers proportion charge on a constant-currency foundation.

Reported Working Benefit and Reported Profits In step with Percentage at the moment are anticipated to be negatively impacted through roughly 650 foundation issues from foreign money translation as opposed to a prior expectation of 700 foundation issues.

This outlook displays guesses topic to switch given the macro state.

Supplemental Fabrics and Are living Webcast

Supplemental fabrics will likely be to be had at roughly 6:35 a.m. Japanese Sunlight Generation within the Investor Family members category of www.kimberly-clark.com. The corporate will host a reside Q&A consultation with traders and analysts on October 22, 2024, at 8:00 a.m. Japanese Sunlight Generation. The supplemental fabrics and Kimberly-Clark’s Q&A consultation will also be accessed at investor.kimberly-clark.com. A replay of the webcast will likely be to be had following the development via the similar site.

About Kimberly-Clark

Kimberly-Clark (NYSE: KMB) and its depended on manufacturers are an indispensable a part of week for folk in additional than 175 international locations and territories. Fueled through ingenuity, creativity, and an figuring out of folk’s maximum crucial wishes, we develop merchandise that support folks enjoy extra of what’s noteceable to them. Our portfolio of manufacturers, together with Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Rely, Andrex, Speed-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, stock Deny. 1 or Deny. 2 proportion positions in roughly 70 international locations. We usefulness sustainable practices that assistance a wholesome planet, assemble sturdy communities, and assure our industry prospers for many years to come back. We’re proud to be known as one of the most Global’s Maximum Moral Corporations^(R) through Ethisphere for the 5th yr in a row. To hold up with the actual information and to be informed extra in regards to the corporate’s 150-year historical past of innovation, talk over with kimberly-clark.com.

Copies of Kimberly-Clark’s Annual Report back to Stockholders and its proxy statements and alternative SEC filings, together with Annual Stories on Mode 10-Okay, Quarterly Stories on Mode 10-Q and Tide Stories on Mode 8-Okay, are made to be had independent of fee at the corporate’s site at the identical time they’re filed with the SEC. To view those filings, talk over with the Buyers category of the corporate’s site.

Ahead Taking a look Statements

Positive issues contained on this information loose in regards to the industry outlook, together with uncooked subject material, power and alternative enter prices, the expected fees and financial savings from the 2024 Transformation Initiative, money stream and makes use of of money, expansion projects, inventions, advertising and alternative spending, internet gross sales, expected foreign money charges and trade dangers, together with the affect in Argentina and Türkiye, efficient tax charge, contingencies and expected transactions of Kimberly-Clark, together with dividends, proportion repurchases and pension contributions, represent “forward-looking statements” throughout the which means of the Non-public Securities Litigation Reform Business of 1995 and are founded upon control’s expectancies and ideology regarding presen occasions impacting Kimberly-Clark. There will also be refuse word that those presen occasions will happen as expected or that our effects will likely be as estimated. Ahead-looking statements talk best as of the past they have been made, and we adopt refuse legal responsibility to publicly replace them.

The guesses old as a foundation for the forward-looking statements come with many estimates that, amongst alternative issues, rely at the fulfillment of presen value financial savings and projected quantity will increase. As well as, many elements out of doors our regulate, together with the chance that we don’t seem to be ready to understand the expected advantages of the 2024 Transformation Initiative (together with dangers linked to disruptions to our industry or operations or linked to any delays in implementation), warfare in Ukraine (together with the linked responses of shoppers, consumers, and providers and sanctions issued through the U.S., the Eu Union, Russia or alternative international locations), pandemics, epidemics, fluctuations in foreign currencies trade charges, the costs and availability of our uncooked fabrics, provide chain disruptions, disruptions within the capital and credit score markets, counterparty defaults (together with consumers, providers and monetary establishments with which we do industry), failure to understand the predicted advantages or synergies from our acquisition and disposition job, impairment of approbation and intangible property and our projections of running effects and alternative elements that can have an effect on our impairment trying out, adjustments in buyer personal tastes, unpleasant climate statuses, regional instabilities and hostilities (together with the warfare in Israel), govt business or alike regulatory movements, doable aggressive pressures on promoting costs for our merchandise, power prices, normal financial and political statuses globally and within the markets during which we do industry, in addition to our skill to uphold key buyer relationships, may have an effect on the belief of those estimates.

The standards described below Merchandise 1A, “Risk Factors” in our Annual Record on Mode 10-Okay for the yr ended December 31, 2023, or in our alternative SEC filings, amongst others, may motive our presen effects to range from the ones expressed in any forward-looking statements made through us or on our behalf. Alternative elements no longer at this time recognized to us or that we at this time imagine immaterial may additionally have an effect on our industry operations and monetary effects.

Non-GAAP Monetary Measures

This information loose and the accompanying tables come with please see monetary measures that experience no longer been calculated according to accounting ideas typically authorized within the U.S., or GAAP, and are due to this fact known as non-GAAP monetary measures:

• Adjusted income and income in step with proportion
• Adjusted rude and running benefit
• Adjusted efficient tax charge

Those non-GAAP monetary measures exclude please see pieces for the related occasion classes as indicated within the accompanying non-GAAP reconciliation tables:

• 2024 Transformation Initiative – In 2024, we initiated this modification initiative to reinforce our center of attention on expansion and loose our structural value bottom through reorganizing into 3 fresh industry branchs, making the company and regional overhead value constructions extra environment friendly and optimizing our world provide chain. Ends up in 2024 come with fees linked to this program.
• Sale of PPE industry – In 2024, we known a achieve linked to the sale of our PPE industry.
• Impairment of intangible property – Within the 3rd quarter of 2024 and the second one quarter of 2023, we known fees linked to the impairment of sure intangible property linked to Softex and Thinx.
• Sale of Brazil tissue and Okay-C Skilled industry – In the second one quarter of 2023, we known a internet get advantages linked to the sale of our Brazil tissue and Okay-C Skilled industry.
• Pension settlements – In 2023, we known pension agreement fees linked to lump-sum distributions from 401-k property exceeding the whole of annual carrier and passion prices to bring about a popularity of deferred actuarial losses.

The source of revenue tax impact of those non-GAAP pieces is calculated founded upon the tax rules and statutory source of revenue tax charges acceptable within the tax jurisdiction(s) of the underlying non-GAAP adjustment. The affect of those non-GAAP pieces at the Corporate’s efficient tax charge represents the too much within the efficient tax charge calculated with and with out the non-GAAP adjustment on Source of revenue Ahead of Source of revenue Taxes and Fairness Pursuits and Provision for source of revenue taxes.

The corporate supplies those non-GAAP monetary measures as supplemental data to our GAAP monetary measures. Control and the corporate’s Board of Administrators usefulness adjusted income, adjusted income in step with proportion and changed rude and running benefit to (a) review the corporate’s historic and potential monetary efficiency and its efficiency relative to its competition, (b) allocate assets and (c) measure the operational efficiency of the corporate’s industry gadgets and their managers. Control additionally believes that the usefulness of an adjusted efficient tax charge supplies progressed perception into the tax results of our ongoing industry operations.

Moreover, the Control Building and Reimbursement Committee of the corporate’s Board of Administrators has old sure of the non-GAAP monetary measures when atmosphere and assessing fulfillment of incentive repayment targets. Those targets are founded, partially, at the corporate’s adjusted income in step with proportion.

Positive non-GAAP monetary measures referenced on this information loose are offered on a forward-looking foundation. Kimberly-Clark does no longer serve a reconciliation of those forward-looking non-GAAP monetary measures to essentially the most at once related GAAP monetary measures on a forward-looking foundation as a result of it’s not able to expect sure adjustment pieces with out unreasonable try. Please word that these things might be subject material to Kimberly-Clark’s effects calculated according to GAAP.

This information loose comprises data referring to natural gross sales expansion, which describes the affect of adjustments in quantity, internet promoting costs and product combine aside from prior yr’s affect of divestitures and industry exits on internet gross sales. Adjustments in foreign currencies trade charges and divestitures and industry exits additionally affect the year-over-year alternate in internet gross sales.

Non-GAAP monetary measures don’t seem to be supposed to be thought to be in isolation or as an alternative choice to the related GAAP measures, they usually must be learn best together with the corporate’s consolidated monetary statements ready according to GAAP. There are obstacles to those non-GAAP monetary measures as a result of they aren’t ready according to GAAP and will not be related to in a similar fashion titled measures of alternative firms because of doable variations in modes of calculation and pieces being excluded. The corporate compensates for those obstacles through the use of those non-GAAP monetary measures as a complement to the GAAP measures and through offering reconciliations of the non-GAAP and related GAAP monetary measures.

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SOURCE Kimberly-Clark Company