Kimberly-Clark Corporation's Stock Analysis

Kimberly-Clark Reports Q2 2025 Financial Results and Adjusted Outlook

Kimberly-Clark Corporation reported net sales of $4.2 billion for the second quarter of 2025, a 1.6 percent decrease compared to the previous year, primarily due to divestitures and unfavorable currency impacts. However, organic sales growth was 3.9 percent, driven by a 5.0 percent increase in volume. The company's gross margin was reported at 35.0 percent, while adjusted gross margin stood at 36.9 percent, reflecting a decline attributed to cost inflation and pricing investments. Diluted earnings per share (EPS) for the quarter were $1.53, down from $1.61 in the prior year, with adjusted EPS at $1.92, a decrease of 2.0 percent year-over-year.

For the first half of 2025, Kimberly-Clark's sales totaled $8.2 billion, a 4.0 percent decline largely due to the same divestiture factors. Year-to-date organic sales grew by 1.2 percent, and diluted EPS were reported at $3.23, down from $3.52 in the previous year. The company also provided an adjusted outlook for the full year, anticipating organic sales growth to exceed the average growth in its market categories and a low-to-mid single-digit growth rate for adjusted operating profit. The company expects challenges from currency translation and the impacts of its divestitures to continue affecting its financial performance.

Aug 01, 2025 06:34:26

Kimberly-Clark Forms Joint Venture with Suzano for IFP Business

Kimberly-Clark Corporation has entered into a joint venture agreement with Suzano S.A. to transfer substantially all operations of its former International Family Care and Professional segment for approximately $1.7 billion. Under this agreement, Suzano will acquire a 51% interest, while Kimberly-Clark will retain a 49% equity stake. This transaction is expected to close in mid-2026, following regulatory approvals and other customary conditions. As a result, the operations of the IFP Business will be reported as discontinued operations starting in the second quarter of fiscal 2025, affecting the company's financial reporting structure.

The joint venture represents a strategic shift for Kimberly-Clark, leading to a reorganization of its reporting segments. The results of the IFP Business will be excluded from continuing operations and segment results, with historical financials recast to reflect this change. This restructuring is aimed at providing clarity to investors regarding the company's ongoing operations and financial performance, as the IFP Business will no longer contribute to the company's reported results.

Jul 25, 2025 09:07:30

Kimberly-Clark Forms Strategic Partnership with Suzano for Growth

Kimberly-Clark Corporation has announced a strategic partnership with Suzano to create a new international tissue and professional products company. Kimberly-Clark will hold a 49% stake in the venture, which includes the assets of its International Family Care and Professional business. This move aims to sharpen Kimberly-Clark's focus on higher growth and margin categories, particularly in personal care and North American markets, while capitalizing on opportunities for shareholder returns.

The transaction involves Kimberly-Clark contributing its International Family Care business, which generated approximately $3.3 billion in net sales in 2024, to the new venture. Following the deal, Kimberly-Clark expects a dilution of $0.30-0.40 to its Adjusted Earnings Per Share in the first year. The partnership is set to close in mid-2026, pending regulatory approvals, and will lead to the classification of the contributed business as discontinued operations in Kimberly-Clark's financial disclosures starting with its second quarter results.

Jun 05, 2025 07:06:25

Kimberly-Clark Reports First Quarter 2025 Financial Results

Kimberly-Clark Corporation announced its financial results for the first quarter of 2025, reporting net sales of $4.8 billion, a decline of 6.0% compared to the previous year. This decrease was attributed to foreign currency impacts and business divestitures, with an organic sales decline of 1.6%. The company also reported diluted earnings per share of $1.70, down from $1.91 in the prior year, reflecting lower operating profit and reduced net income from equity companies. Operating profit was $769 million, down 9.8% from $853 million in the same quarter last year, influenced by charges related to the 2024 Transformation Initiative and unfavorable currency translation effects.

Looking ahead, Kimberly-Clark adjusted its full-year outlook due to anticipated higher costs from a changing geopolitical landscape. The company now expects its 2025 adjusted operating profit to be flat to positive on a constant-currency basis, a revision from the previous expectation of high single-digit growth. Additionally, the adjusted earnings per share forecast has been revised to reflect similar expectations of flat to positive growth. The company continues to emphasize its commitment to innovation and productivity improvements despite the challenges in the current operating environment.

Apr 22, 2025 07:04:59

Kimberly-Clark Reports $20.1 Billion in Net Sales for 2024

Kimberly-Clark Corporation announced its financial results for 2024, showing a net sales figure of $20.1 billion, which is a decrease of 1.8% from the previous year. However, the company achieved organic sales growth of 3.2%, driven by price increases and volume gains, particularly in hyperinflationary markets. The adjusted gross margin improved to 36.5%, reflecting strong productivity and favorable pricing, despite challenges from manufacturing costs. The company also reported an adjusted operating profit of $3.2 billion, marking a 9.4% increase compared to the prior year, which indicates effective management of costs and operational efficiencies during a transformative year for the organization.

On the negative side, Kimberly-Clark faced a decline in reported net sales due to foreign currency translation and divestitures, which impacted overall performance. The diluted earnings per share for the year were $7.55, up from $5.21 the previous year, but the adjusted earnings per share saw a smaller increase of 11.1% to $7.30. The fourth quarter results reflected a decrease in net income attributable to Kimberly-Clark, falling by 12.2% compared to the prior year, attributed to charges related to the ongoing transformation and lower equity income. Additionally, the company noted increased net interest expenses and a higher effective tax rate, which could pose challenges for future profitability.

Jan 28, 2025 06:40:22

Kimberly-Clark Reports Mixed Q3 Results with Positive Outlook

Kimberly-Clark Corporation announced its third quarter 2024 results, achieving net sales of $5.0 billion with a slight organic sales growth of 1%. The company highlighted strong market execution and effective cost management, leading to a notable increase in adjusted earnings per share by 5% compared to the previous year. Despite facing challenges such as a 4% decline in total sales compared to last year largely due to unfavorable currency translation and divestitures, the company reported a solid operating profit of $1.2 billion, aided by productivity gains and a successful divestiture of its PPE business.

However, the overall sales decline and the negative impacts from foreign currency translation and recent divestitures raise concerns about the company's performance in certain markets, particularly in North America where organic sales decreased by 1%. While the company remains optimistic about its future growth and has reaffirmed its profit outlook for 2024, the mixed results suggest a need for continued focus on innovation and market responsiveness to navigate the dynamic consumer environment.

Oct 22, 2024 06:37:15

Kimberly-Clark Reports Strong Q2 2024 Results and Outlook

Kimberly-Clark's Q2 2024 results show net sales of $5 billion, with a 4% organic sales growth. Earnings per share rose 19% to $1.96, driven by innovation and effective cost management. Despite a 2% decline in total sales due to currency impacts and divestitures, the company raised its 2024 earnings outlook, reflecting strong performance in the first half of the year. The CEO expressed confidence in leveraging their operating model for future growth.

Jul 23, 2024 06:32:25

Kimberly-Clark Reports Strong First Quarter 2024 Results

Kimberly-Clark announces $5.1 billion net sales with 6% organic growth, leading to strong EPS expansion. The company raised its 2024 outlook due to a solid start, highlighting positive volume and mix gains from innovative products. Despite a 1% sales decrease, gross margin improved by 390 basis points. Operating profit increased by 14%, and adjusted EPS rose by 20%. Personal Care and Consumer Tissue segments showed growth, while K-C Professional segment faced a slight decline. Cash flow was lower due to timing differences, but the balance sheet remained stable.

Apr 23, 2024 07:05:23

Kimberly-Clark Reports Strong 2023 Results and Positive 2024 Outlook

Kimberly-Clark achieved $20.4 billion in net sales for 2023, exceeding expectations with 5% organic sales growth. The company also announced a positive outlook for 2024. Fourth quarter results showed 3% organic sales growth and a 210 basis point increase in gross margin. Despite a 2% decrease in full-year sales volume, the company's gross margin improved by 360 basis points. Adjusted earnings per share for 2023 were $6.57, surpassing the initial outlook. Kimberly-Clark plans to detail its strategic priorities and initiatives for the future in an upcoming Investor Day.

Jan 24, 2024 07:05:11

Kimberly-Clark Announces Strong Q3 2023 Results with Sales Growth and Margin Recovery

Kimberly-Clark Corporation reported strong third quarter 2023 results, with net sales up 2 percent and organic sales growing 5 percent. The company's revenue growth management program and productivity drive contributed to margin recovery. Kimberly-Clark raised its 2023 outlook, expecting organic growth of 4-5% and adjusted earnings per share growth of 15-17%. In the third quarter, the company delivered net sales of $5.1 billion, with a gross margin of 35.8 percent. Operating profit increased by 18 percent, and diluted earnings per share increased by 25 percent.

Oct 24, 2023 07:53:38