Kimberly-Clark announced its third-quarter 2024 results, showcasing growth driven by innovative products and sustained productivity.
“Our strong third-quarter results reflect excellent execution as we transform our organization,” said CEO Mike Hsu. He praised the company’s ability to achieve both organic revenue and profit growth, despite a challenging consumer environment. “Our Powering Care strategy is accelerating innovation while optimizing costs, positioning us for continued success into 2025.”
Key Highlights:
- Net Sales: $5.0 billion, a 4% decrease from last year due to foreign currency impacts and the divestiture of the K-C Professional PPE business. Organic sales rose 1%.
- Gross Margin: Adjusted gross margin grew by 90 basis points, driven by productivity gains.
- EPS: Reported earnings per share (EPS) were $2.69, while adjusted EPS increased 5% to $1.83, despite currency translation challenges.
- Operating Profit: $1.2 billion, including gains from the PPE divestiture. Adjusted operating profit grew by 5%.
Hsu highlighted the company’s commitment to streamlining operations and reducing costs, allowing for faster response times in key markets. The company is on track to achieve significant profit and margin growth for 2024 while continuing to invest for future momentum.
Segment Performance:
- Personal Care: Sales decreased 2% but saw a 3% organic sales increase. Innovation helped maintain market share.
- Consumer Tissue: Sales dropped 2%, with a 1% decline in organic sales, driven by North American inventory reductions and lower European pricing.
- K-C Professional: Sales fell 10% due to divestitures and unfavorable currency translation. Organic sales dipped 1%.
2024 Outlook: Kimberly-Clark adjusted its full-year expectations, anticipating 3%-4% organic sales growth. The company projects mid-to-high teens percentage growth in adjusted operating profit and EPS on a constant-currency basis. However, reported results are expected to be impacted by currency translation.
Kimberly-Clark continues to focus on delivering sustainable growth and superior products across its global markets.
