Posted July 25, 2023

Q2 net sales rise 1% for Kimberly Clark

Kimberly-Clark Corp. delivered net sales of $5.1 billion for the second quarter, up 1%, with organic sales growth of 5%. Gross margin was 33.7%, up 350 basis points; adjusted gross margin was 34.0%, up 380 basis points versus the prior year, driven by favorable net revenue realization and productivity, offsetting inflation.

"We delivered another quarter of strong organic sales growth and gross margin expansion," said Chairman and CEO Mike Hsu. "Our growth strategy is working, and given the strength of our first-half results, we're raising our full-year outlook.

"Continued improvement in gross margin positions us well to invest in superior brand value propositions," he added, "including innovation and digital leadership, which will help grow our market shares over time and deliver balanced and sustainable growth for long-term shareholder value."

In North America, organic sales increased 6% over last year, including increases of 1% in Personal Care, 7% in Consumer Tissue, and 17% in K-C Professional.

Outside North America, organic sales were up 6% in developing and emerging (D&E) markets and 4% in developed markets (Australia, South Korea and Western/Central Europe).

For the first six months of the year, sales of $10.3 billion increased 2%, with organic sales up 5%, driven by a 10% increase in price and favorable product mix from ongoing revenue growth management programs offset by a 4 percent% decrease in volume. Changes in foreign currency exchange rates decreased sales by approximately 4%.

Read details here.