Kimberly-Clark Corp (KMB, Financial), a leading manufacturer in the tissue and hygiene realm, reported its second quarter 2024 results, showcasing a mixed performance. The company, known for its brands like Huggies, PullUps, Kotex, Depend, Kleenex, and Cottonelle, operates globally with significant sales in North America, Europe, Asia, and Latin America.
Performance Overview
For Q2 2024, Kimberly-Clark Corp (KMB, Financial) reported net sales of $5.0 billion, a 2% decrease from the prior year, missing the estimated revenue of $5.109 billion. However, the company delivered a strong adjusted earnings per share (EPS) of $1.96, surpassing the analyst estimate of $1.67.
Key Financial Achievements
Despite the revenue decline, Kimberly-Clark Corp (KMB, Financial) achieved significant financial milestones:
- Adjusted gross margin increased by 290 basis points to 36.9%, driven by organic net sales growth and productivity gains.
- Adjusted operating profit rose by 16%, despite a 7 percentage point headwind from currency translation.
- Net income attributable to Kimberly-Clark Corp surged to $544 million, a substantial increase from $102 million in the prior year.
Segment Performance
| Segment | Net Sales | Change vs. Prior Year | Operating Profit | Change vs. Prior Year |
|---|---|---|---|---|
| Personal Care | $2.7 billion | 0% | $540 million | +14% |
| Consumer Tissue | $1.5 billion | -4% | $245 million | +23% |
| K-C Professional | $841 million | -5% | $186 million | -1% |
Income Statement Highlights
Kimberly-Clark Corp (KMB, Financial) reported a gross profit of $1.81 billion, up 5% from the previous year. Operating profit saw a significant increase to $655 million, a 480% rise, primarily due to lower costs and higher productivity. The company's effective tax rate was 15.1%, with an adjusted rate of 20.9%.
Cash Flow and Balance Sheet
Year-to-date cash provided by operations was $1.5 billion, up from $1.4 billion last year. Capital spending decreased to $352 million from $389 million. The company returned $965 million to shareholders through dividends and stock repurchases, maintaining total debt at $8.0 billion.
Outlook for 2024
Kimberly-Clark Corp (KMB, Financial) has updated its 2024 outlook, expecting mid-to-high teens growth in adjusted operating profit and EPS on a constant-currency basis. The company remains focused on leveraging its strong foundation to enhance value for stakeholders.
"We have made strong progress while navigating dynamic consumer and retail environments," said Kimberly-Clark Chairman and CEO Mike Hsu. "Our focus is to deliver high-quality consumer solutions at every price point, increase our operational scale, and enhance our long-term potential."
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Kimberly-Clark Corp for further details.
