Kimberly-Clark grows Q3 net sales 2%
For its third quarter 2023, Kimberly-Clark Corporation reported delivered net sales of $5.1 billion, up 2%, with organic sales growth of 5%.
Comparisons are made versus the prior year period, unless otherwise noted.
"We delivered another strong quarter, with organic growth across all segments and continued margin progress," said Kimberly-Clark Chairman and CEO Mike Hsu. "I'm proud of how our teams around the world are executing our growth strategy. Our innovation and commercial capabilities continue to enhance the value proposition of our brands, while strong execution of our revenue growth management and ongoing productivity programs enabled us to restore gross margin to pre-pandemic levels."
Hsu added, "Based on our year-to-date performance, we have raised our full-year outlook. We're confident that continued investments in our brands and commercial programs will deliver superior value to our consumers and balanced and sustainable growth for our shareholders."
Quarter Highlights
- Gross margin was 35.8%, up 530 basis points versus the prior year, driven by favorable net revenue realization and productivity.
- Diluted earnings per share were $1.73; adjusted earnings per share were $1.74, up 24% versus prior year.
- Raised 2023 outlook for organic growth to 4% - 5%, and for adjusted earnings per share growth of 15% - 17%, with adjusted operating margin up 170 basis points at the midpoint versus last year.
Third quarter operating profit was $774 million compared to $655 million last year, resulting in an operating margin of 15.1 percent. Operating profit increased by 18 percent, driven by higher gross profit including $90 million in FORCE (Focus on Reducing Costs Everywhere) savings and $75 million in lower input costs, partially offset by other manufacturing costs of $30 million, planned increases in marketing, research and general expenses, coupled with higher incentive compensation levels. Unfavorable currency effects impacted operating profit by $135 million during the quarter.
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