Kimberly-Clark Corporation (KMB, Financial) has announced a significant realignment of its internal operating and management structure, effective in the fourth quarter of 2024. This strategic move aims to streamline the company's supply chain and improve the efficiency of its corporate and regional overhead cost structures. As a result, Kimberly-Clark will now manage and report its operations through three newly defined reportable segments: North America (NA), International Personal Care (IPC), and International Family Care and Professional (IFP).
Previously, the company organized its operations into three segments based on product groupings: Personal Care, Consumer Tissue, and K-C Professional. The new structure reflects a shift towards a geographic and product grouping approach, aligning with the company's global strategies to drive growth and profitability.
In addition to the segment realignment, Kimberly-Clark has updated its measure of segment profitability to include the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where highly inflationary accounting has been adopted. The primary measure of segment profitability, as utilized by the company's chief operating decision maker, is segment operating profit. This measure excludes certain unallocated general corporate expenses, impairment charges, and costs related to reorganization activities that are not associated with the ongoing operations of the segments.
Kimberly-Clark has also provided supplemental historical segment financial information to conform to the new reportable segments structure. This information is intended to assist investors in evaluating the company's performance by providing meaningful supplemental data that excludes certain items not reflective of underlying operations.
The company emphasizes that while non-GAAP financial measures are used to provide additional insights, they should be considered alongside GAAP measures for a comprehensive understanding of Kimberly-Clark's financial performance.
Should you invest in Kimberly-Clark Corp (KMB, Financial) right now? Before you do it, it’s important to understand the business profitability and stock valuations, and find out what the warning signs are about. See the in-depth Kimberly-Clark Corp (KMB) stock research here.
