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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 .
- 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 .
- Consumer Tissue - Offers facial and bathroom tissue, paper towels, and napkins under brands like Kleenex, Scott, and Cottonelle .
- K-C Professional - Provides wipers, tissue, towels, and personal protective equipment with brands including Kleenex, Scott, and WypAll .
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"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?"
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"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?"
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"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?"
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"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?"
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"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?"
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 .
Recent developments and announcements about KMB.
Corporate Leadership
Leadership Change
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
- 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.
- 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.
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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%.
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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%.
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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%.
- 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.
- 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.
Earnings Report
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
Full Year 2024 Highlights
Segment Performance
Key Trends and Initiatives
2025 Outlook
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.