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    Kimberly-Clark Corp (KMB)

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    Business Description

    Kimberly-Clark Corporation is a global company specializing in the manufacturing and marketing of products made from natural or synthetic fibers and materials. The company operates through three main business segments, offering a variety of personal care, consumer tissue, and professional products. Kimberly-Clark's product portfolio includes well-known brands such as Huggies, Kleenex, and Scott, which hold leading positions in their respective markets .

    1. Personal Care - Manufactures and markets disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and reusable underwear under brands like Huggies, Pull-Ups, Kotex, and Depend .
    2. Consumer Tissue - Offers facial and bathroom tissue, paper towels, and napkins under brands like Kleenex, Scott, and Cottonelle .
    3. K-C Professional - Provides wipers, tissue, towels, and personal protective equipment with brands including Kleenex, Scott, and WypAll .

    Key Metrics

    View all financials →

    Executive Team

    NamePositionStart DateShort Bio
    Michael D. HsuChairman of the Board and CEOJanuary 2019Michael D. Hsu, 59, has served as Chairman of the Board since January 2020 and as Chief Executive Officer since January 2019. He joined Kimberly-Clark in 2012 and has held various leadership roles, including President and COO from 2017 to 2019 .
    Ehab Abou-OafPresident of K-C ProfessionalJanuary 2022Ehab Abou-Oaf is responsible for Kimberly-Clark's global business-to-business operations. Before joining Kimberly-Clark, he worked at Mars, Inc. for 19 years and at The Procter & Gamble Company for ten years .
    Doug CunninghamPresident, K-C Europe, Middle East & Africa2021Doug Cunningham, 52, is responsible for Kimberly-Clark's consumer business in the EMEA region. He previously served as Vice President and Managing Director for Australia & New Zealand starting in 2019 .
    Tamera FenskeSenior Vice President and Chief Supply Chain OfficerSeptember 2022Tamera Fenske is responsible for procurement, manufacturing, logistics, transportation, safety, and sustainability. She joined Kimberly-Clark from 3M Company, where she held various roles, including Senior Vice President, U.S. and Canada Manufacturing and Supply Chain .
    Zackery HicksChief Digital and Technology OfficerJuly 2022Zackery Hicks is responsible for all aspects of the company's information technology and digital functions. Before joining Kimberly-Clark, he served as Executive Vice President and Chief Digital Officer at Toyota Motors North America, Inc. .
    Sandra R.A. KarrmannSenior Vice President and Chief Human Resources Officer2020Sandra R.A. Karrmann, 58, is responsible for the design and implementation of all human capital strategies. Before joining Kimberly-Clark, she served as Executive Vice President and Chief Human Resources Officer at Tenet Healthcare Corporation .
    Alison LewisChief Growth Officer2019Alison Lewis, 56, joined Kimberly-Clark from Johnson & Johnson, where she served as Chief Marketing Officer of the Global Consumer business .
    Robert LongChief Research and Development Officer2021Robert Long, 66, is responsible for the company's global research and development, quality, and regulatory functions. He joined Kimberly-Clark from The Coca-Cola Company, where he served as Senior Vice President for Global R&D and Chief Innovation Officer .
    Grant B. McGeeSenior Vice President and General CounselFebruary 2024Grant B. McGee, 43, rejoined Kimberly-Clark from American Airlines, where he served as Vice President, Deputy General Counsel, and Corporate Secretary. He previously served in various roles at Kimberly-Clark from 2015 to 2022 .
    Jeffrey MelucciChief Business and Transformation OfficerJanuary 2024Jeffrey Melucci, 53, previously served as Chief Business Development and Legal Officer. He has held various positions at Kimberly-Clark, including Senior Vice President, Business Development and General Counsel .
    Paula S. Vaz RamosChief Strategy and Transformation OfficerOctober 2021Paula S. Vaz Ramos, 44, is responsible for the company's global enterprise strategy and transformation activities. She joined Kimberly-Clark from McKinsey & Company, where she worked for 18 years .
    Russell TorresGroup President, K-C North America2021Russell Torres, 52, is responsible for Kimberly-Clark's consumer business in North America. He joined Kimberly-Clark from Newell Brands Inc., where he served as Group President .
    Nelson UrdanetaSenior Vice President and Chief Financial OfficerApril 2022Nelson Urdaneta joined Kimberly-Clark from Mondelēz International, where he served as Senior Vice President, Treasurer. He has held various roles at Mondelēz since 2005 .
    Gonzalo UribePresident, K-C Latin America2020Gonzalo Uribe, 52, is responsible for Kimberly-Clark's consumer business in the Latin America region. He joined Kimberly-Clark from Mondelēz International, where he held multiple roles .
    Tristram WilkinsonPresident, K-C Asia Pacific2021Tristram Wilkinson, 55, is responsible for Kimberly-Clark's consumer business in the Asia Pacific region. He joined Kimberly-Clark in 1995 and has held various positions within the company's EMEA operations .

    Questions to Ask Management

    1. "You've noted that the exit from private label businesses will create a headwind of about 2% in 2025 due to ceasing production for a large club private label diaper business in the U.S. ; with this significant impact on revenue, what specific strategies are you implementing to offset this loss and drive growth in your branded products?"

    2. "Given that your gross margin has expanded year-to-date and is tracking ahead of pre-COVID levels , but you're facing soft organic sales and potential need to increase promotions due to consumer pressures, how sustainable are these margin levels, and what risks do you see to maintaining them in the coming quarters?"

    3. "Despite implementing your new organizational structure as of October 1 , you expect category growth to decelerate to the lower end of your long-term range ; how will this restructuring help drive the intended growth, and what challenges do you anticipate in achieving your goals?"

    4. "Amid significant organizational changes and market volatility, including demand deceleration in key regions and channels , how has your visibility into business performance and forecasting accuracy been affected, and what measures are you taking to improve it?"

    5. "With innovations like Skin Essentials reportedly exhibiting high cannibalization rates , how do you assess the effectiveness of such products in driving net incremental growth versus merely shifting sales within your portfolio, and what strategies are in place to ensure innovation leads to market share gains?"

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateJanuary 22, 2021
    End Date/DurationN/A
    Total additional amount$5 billion
    Remaining authorization amount33,695,323 shares
    DetailsAllows repurchase of 40 million shares

    Debt Maturity Schedule

    YearAmount Due (Millions)Debt TypeInterest Rate (%)% of Total Debt
    20244U.S. commercial paper and/or similar short-term debtN/A0.05% = (4 / 7,500) * 100
    2024569Debt payable within one year (includes short-term and current portion of long-term debt)N/A7.6% = (569 / 7,500) * 100
    N/A6,882Long-term debtN/A91.8% = (6,882 / 7,500) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Global, regional and local manufacturers: These include private label manufacturers which offer products typically sold at lower prices. The private label market share has been increasing in the tissue category, which could reduce net sales of Kimberly-Clark's higher-margin products and negatively impact profitability .
    • Well-known, branded products and low-cost or private label products: Competitors in both domestic and international markets include these types of products. Some competitors may have better access to financial resources and greater market penetration, enabling them to offer a wider variety of products and services at more competitive prices .
    • Private label manufacturers: These competitors may have significantly lower product development and manufacturing costs, allowing them to offer products at a lower price .

    Auditor

    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP1928PresentCurrent auditor

    Latest news

    Recent developments and announcements about KMB.

    Corporate Leadership

      Leadership Change

      ·
      8 days ago

      Who is leaving? Andrew S. Drexler, the current Vice President and Controller of Kimberly-Clark Corporation, will retire on June 6, 2025, after a transitional role starting June 1, 2025.

      Why? Retirement.

      Who is stepping up? Andrew Scribner, currently Chief Financial Officer of Kimberly-Clark North America, will assume the role of Vice President and Controller effective June 1, 2025.

    Financial Reporting

      Earnings Report

      ·
      Jan 28, 2025, 12:05 PM

      Kimberly-Clark Corporation (KMB) Earnings Results for Q4 and Full Year 2024

      Kimberly-Clark Corporation has released its earnings results for the fourth quarter and full year of 2024. Below are the key highlights:

      Fourth Quarter 2024 Highlights

      • Net Sales: $4.9 billion, a decrease of 0.8% compared to the prior year. Organic sales grew by 2.3%, driven by:
        • Volume Growth: 1.5% (highest quarterly growth of the year).
        • Price Increase: 0.6%.
        • Favorable Product Mix: 0.1%.
      • Gross Margin: 34.0%, including charges related to the 2024 Transformation Initiative. Adjusted gross margin was 35.4%, up 50 basis points year-over-year.
      • Operating Profit: $548 million, down from $670 million in Q4 2023. Adjusted operating profit was $684 million, up 2.1% year-over-year.
      • Diluted Earnings Per Share (EPS): $1.34, down from $1.50 in Q4 2023. Adjusted EPS was $1.50, a slight decrease of 0.7% year-over-year.

      Full Year 2024 Highlights

      • Net Sales: $20.1 billion, a decline of 1.8% compared to 2023. Organic sales grew by 3.2%, driven by:
        • Price Increase: 1.9%.
        • Volume Growth: 0.8%.
        • Favorable Product Mix: 0.4%.
      • Gross Margin: 35.8%, including charges from the 2024 Transformation Initiative. Adjusted gross margin was 36.5%, a 200 basis point improvement year-over-year.
      • Operating Profit: $3.2 billion, up 36.9% from 2023. Adjusted operating profit increased by 9.4% to $3.2 billion.
      • Diluted EPS: $7.55, up from $5.21 in 2023. Adjusted EPS was $7.30, an increase of 11.1% year-over-year.

      Segment Performance

      1. North America (NA):

        • Q4 net sales: $2.7 billion, down 0.5%. Organic sales grew by 1.1%.
        • FY net sales: $11.0 billion, flat year-over-year. Organic sales grew by 1.1%.
        • Q4 operating profit: $548 million, down 10.0% year-over-year.
        • FY operating profit: $2.5 billion, up 1.1%.

      2. International Personal Care (IPC):

        • Q4 net sales: $1.4 billion, down 1.3%. Organic sales grew by 5.3%.
        • FY net sales: $5.7 billion, down 3.1%. Organic sales grew by 9.2%.
        • Q4 operating profit: $155 million, up 36.0% year-over-year.
        • FY operating profit: $787 million, up 24.5%.

      3. International Family Care & Professional (IFP):

        • Q4 net sales: $831 million, down 1.2%. Organic sales grew by 0.7%.
        • FY net sales: $3.3 billion, down 5.9%. Organic sales were flat year-over-year.
        • Q4 operating profit: $89 million, up 30.9% year-over-year.
        • FY operating profit: $377 million, up 31.4%.

      Key Trends and Initiatives

      • The company achieved strong productivity savings and favorable pricing net of cost inflation.
      • Investments were made in advertising, product improvements, and strategic capabilities.
      • The 2024 Transformation Initiative contributed to operational restructuring and efficiency gains.

      2025 Outlook

      • Organic Sales Growth: Expected to outpace the weighted average growth in its categories and countries, currently at approximately 2%.
      • Adjusted Operating Profit: Anticipated to grow at a high single-digit rate on a constant-currency basis.
      • Adjusted EPS: Expected to grow at a mid-to-high single-digit rate on a constant-currency basis.
      • Currency Translation Impact: Forecasted to negatively affect net sales, operating profit, and EPS.

      For further details, supplemental materials are available on Kimberly-Clark's Investor Relations website, and a live Q&A session was held on January 28, 2025.