Kimberly-Clark reports strong finish to second year of transformation
Kimberly-Clark Corp. reported fourth quarter and full year 2025 results that it says reflect the momentum of its innovation-driven, volume-plus-mix led growth model.
"In 2025, we accelerated the largest transformation in Kimberly-Clark's more than 150-year history, delivering results that underscore the strength of our business and serve as a springboard for enhanced growth and continued outperformance in 2026," said Chairman and CEO Mike Hsu. "We delivered pioneering innovation across the value spectrum, breakthrough creative storytelling that strengthened brand love, and superior execution that fueled our second consecutive year of broad-based, share gain-led volume-plus-mix growth. We've also maintained a relentless focus on cost discipline as we successfully pivot our portfolio to higher growth, higher margin personal care categories."
"Acquiring Kenvue is a powerful next step in our transformation that will compound the momentum we're already delivering across Kimberly-Clark. Importantly, it will also enable us to raise the standard of care for billions of people around the world," Hsu continued. "We are making strong progress on our integration planning efforts and look forward to delivering on this unique opportunity to create generational value for Kimberly-Clark shareholders."
Quarter Highlights
- Delivered net sales of $4.1 billion, down 0.6%, with organic sales growth of 2.1 percent.
- Gross margin was 35.9%; adjusted gross margin was 37.0%, in line with the prior year.
- Operating profit for the quarter was $507 million, while adjusted operating profit was $629 million, up 13.1% versus the prior year driven by strong productivity gains and lower planned marketing, research and general expenses.
Fourth Quarter 2025 Results
Net sales of $4.1 billion were down 0.6%, as organic sales growth of 2.1% was offset by a 2.5 percent decline primarily from the exit of the company's private label diaper business in the US. Organic sales growth was driven by volume-plus-mix growth of 3.0%, partially offset by price investments of 1.1% to enhance value propositions.
Gross margin was 35.9% compared to 35.2% in the prior year, inclusive of $44 million, or approximately 110 basis points, and $68 million, or approximately 170 basis points, respectively, of charges related to the 2024 Transformation Initiative. Excluding these charges, adjusted gross margin was 37.0%, in line with the prior year as strong productivity savings and volume growth were offset by unfavorable pricing net of cost inflation, reflecting planned investments to improve price:value tiers across the portfolio.
Operating profit was $507 million compared to $420 million in the prior year, inclusive of charges of $122 million and $136 million, respectively, for certain items that management does not believe reflect our underlying and ongoing operations. Excluding these items, adjusted operating profit was $629 million compared to $556 million, an increase of 13.1% driven by strong productivity savings and lower marketing, research and general expenses.
INDUSTRIAL SUPPLY MAGAZINE
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