Kimberly-Clark delivers Q2 net sales of $5.0 billion
Kimberly-Clark Corp reported net sales of $5.0 billion, down 2%, for its second quarter of 2024. The company achieved organic sales growth of 4% versus the prior year.
Gross margin was 36.0% and adjusted gross margin was 36.9%, up 290 basis points versus the prior year, driven by organic net sales growth and gross productivity gains.
The company said its results are characterized by positive volume and mix gains driven by pioneering, innovative new products, leveraging continued productivity momentum for strong earnings growth versus the prior-year period.
"I am very proud of how our teams around the world have advanced our new operating model and delivered high-quality, top and bottom-line results in the first half of this year. We have made strong progress while navigating dynamic consumer and retail environments," said Kimberly-Clark Chairman and CEO Mike Hsu.
"We have a strong foundation that we can leverage to accelerate investments across the enterprise. Our focus is to deliver high-quality consumer solutions at every price point, increase our operational scale, and enhance our long-term potential. We're excited about our opportunities to capitalize on our momentum to deliver our enduring goal of enhancing value for all our stakeholders."
In North America, organic sales increased 1 percent versus the prior year, driven by 5% growth in Personal Care, partially offset by a decline of 4% in K-C Professional and 2% in Consumer Tissue.
Year-To-Date Results
For the first half of the year, sales of $10.2 billion decreased 1% including negative impacts of approximately 5% from foreign currency translation and approximately 1% impact of the exit of the tissue and K-C Professional business in Brazil. Organic sales grew 5 %, driven by an approximately 3% increase in price, primarily in hyperinflationary markets, 1% from favorable product mix and 1% increase in volume.
Year-to-date operating profit was $1.5 billion, including $235 million of costs related to the company's transformation initiative.
2024 Outlook
Based on its first half results, the company has updated its 2024 outlook, with all factors compared to 2023, as follows:
- Organic Net Sales are still expected to grow at mid-single digit rate while Reported Net Sales are still expected to be negatively impacted by 400 basis points of currency translation and 120 basis points from divestitures.
- Adjusted Operating Profit is now expected to grow at a mid-to-high teens percentage rate on a constant-currency basis. This is up from previous expectations for low-teen Adjusted Operating Profit growth on a constant currency basis.
- Adjusted Earnings Per Share is now expected to grow at a mid-to-high teens percentage rate on a constant-currency basis, an increase from previous expectations of low-teens growth.
- Reported Operating Profit and Reported Earnings Per Share are still expected to be negatively impacted by approximately 700 basis points from currency translation.
This outlook reflects assumptions subject to change given the macro environment.
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