Kimberly-Clark Announces Second Quarter 2024 Results and Raises 2024 Outlook
Kimberly-Clark (NYSE: KMB) reported strong Q2 2024 results, with net sales of $5.0 billion and 4% organic sales growth. Despite a 2% decrease in reported sales due to currency impacts, the company achieved significant EPS expansion. Diluted EPS was $1.61, while adjusted EPS increased 19% to $1.96. The company's performance was driven by innovation-led volume gains, effective cost management, and productivity improvements.
Highlights include:
- Gross margin improvement of 290 basis points to 36.9%
- Operating profit of $655 million, with adjusted operating profit up 16%
- Strong performance in Personal Care segment with 8% organic sales growth
- Improved outlook for 2024, expecting mid-to-high teens percentage growth in adjusted EPS
Kimberly-Clark (NYSE: KMB) ha riportato risultati solidi per il secondo trimestre del 2024, con vendite nette di 5,0 miliardi di dollari e una crescita organica delle vendite del 4%. Nonostante una diminuzione del 2% nelle vendite riportate a causa degli impatti valutari, l'azienda ha raggiunto una significativa espansione dell'EPS. L'EPS diluito è stato di 1,61 dollari, mentre l'EPS rettificato è aumentato del 19% a 1,96 dollari. La performance dell'azienda è stata guidata da aumenti di volume guidati dall'innovazione, una gestione efficace dei costi e miglioramenti della produttività.
I punti salienti includono:
- Miglioramento del margine lordo di 290 punti base al 36,9%
- Utile operativo di 655 milioni di dollari, con un utile operativo rettificato in aumento del 16%
- Ottime performance nel segmento Cura della Persona con una crescita organica delle vendite dell'8%
- Prospettive migliorate per il 2024, con una crescita percentuale dell'EPS rettificato prevista nella fascia media-alta dei teenager
Kimberly-Clark (NYSE: KMB) informó resultados sólidos para el segundo trimestre de 2024, con ventas netas de 5,0 mil millones de dólares y un crecimiento de ventas orgánicas del 4%. A pesar de una disminución del 2% en las ventas reportadas debido a los impactos cambiarios, la compañía logró una expansión significativa del EPS. El EPS diluido fue de 1,61 dólares, mientras que el EPS ajustado aumentó un 19% a 1,96 dólares. El rendimiento de la compañía fue impulsado por ganancias de volumen lideradas por la innovación, gestión de costos efectiva y mejoras en productividad.
Los aspectos destacados incluyen:
- Mejora del margen bruto de 290 puntos base al 36,9%
- Beneficio operativo de 655 millones de dólares, con un beneficio operativo ajustado que aumentó un 16%
- Fuerte rendimiento en el segmento de Cuidado Personal con un crecimiento de ventas orgánicas del 8%
- Perspectivas mejoradas para 2024, esperando un crecimiento porcentual del EPS ajustado en la media-alta de los dígitos
Kimberly-Clark (NYSE: KMB)는 2024년 2분기 강력한 실적을 발표했습니다. 순매출은 50억 달러였으며, 유기 판매 성장률은 4%입니다. 환율 영향으로 보고된 매출이 2% 감소했음에도 불구하고, 회사는 상당한 EPS 확장을 달성했습니다. 희석 EPS는 1.61달러였고, 조정 EPS는 19% 증가하여 1.96달러에 달했습니다. 회사의 실적은 혁신 중심의 판매 증가, 효과적인 비용 관리, 생산성 향상에 의해 주도되었습니다.
주요 내용은 다음과 같습니다:
- 총 마진 290베이시스포인트 향상되어 36.9%
- 운영 이익 6억5500만 달러, 조정된 운영 이익 16% 증가
- 개인 관리 부문에서 8% 유기 판매 성장 달성
- 2024년 전망 개선, 조정된 EPS의 중간에서 높은 십대 비율 성장 예상
Kimberly-Clark (NYSE: KMB) a annoncé des résultats solides pour le deuxième trimestre 2024, avec des ventes nettes de 5,0 milliards de dollars et une croissance des ventes organiques de 4%. Malgré une diminution de 2 % des ventes rapportées en raison des impacts de change, l'entreprise a réalisé une expansion significative de l'EPS. L'EPS dilué s'élevait à 1,61 dollar, tandis que l'EPS ajusté a augmenté de 19 % pour atteindre 1,96 dollar. La performance de l'entreprise a été soutenue par des gains de volume guidés par l'innovation, une gestion efficace des coûts et des améliorations de la productivité.
Les points saillants comprennent :
- Amélioration de la marge brute de 290 points de base à 36,9 %
- Bénéfice opérationnel de 655 millions de dollars, le bénéfice opérationnel ajusté ayant augmenté de 16 %
- Excellente performance dans le segment Soins Personnels avec une croissance organique des ventes de 8 %
- Perspectives améliorées pour 2024, avec une croissance prévue à deux chiffres du pourcentage d'EPS ajusté
Kimberly-Clark (NYSE: KMB) hat starke Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit Nettoumsätzen von 5,0 Milliarden Dollar und 4% organischem Umsatzwachstum. Trotz eines Rückgangs von 2% bei den berichteten Umsätzen aufgrund von Währungswirkungen erzielte das Unternehmen eine signifikante EPS-Erweiterung. Der verwässerte EPS betrug 1,61 Dollar, während der bereinigte EPS um 19% auf 1,96 Dollar anstieg. Die Leistung des Unternehmens wurde durch innovation-getriebenen Volumengewinne, effektives Kostenmanagement und Produktivitätsverbesserungen vorangetrieben.
Die Highlights umfassen:
- Verbesserung der Bruttomarge um 290 Basispunkte auf 36,9%
- Betriebsgewinn von 655 Millionen Dollar, wobei der bereinigte Betriebsgewinn um 16% gestiegen ist
- Starke Leistung im Bereich Persönliche Pflege mit 8% organischem Umsatzwachstum
- Verbesserte Aussichten für 2024, mit einer erwarteten prozentualen Wachstumsrate des bereinigten EPS im mittleren bis hohen Teenagerbereich
- Organic sales growth of 4% in Q2 2024
- Adjusted EPS increased 19% to $1.96
- Gross margin improved by 290 basis points to 36.9%
- Adjusted operating profit up 16%
- Personal Care segment achieved 8% organic sales growth
- Raised 2024 outlook, expecting mid-to-high teens percentage growth in adjusted EPS
- Reported net sales decreased 2% due to currency impacts and divestitures
- Consumer Tissue segment sales decreased 4%
- K-C Professional segment sales decreased 5%
- Expected negative impact of 400 basis points from currency translation on 2024 reported net sales
Kimberly-Clark's second quarter results reveal several key insights that are important for investors. The company reported net sales of $5.0 billion, which is a 2 percent decrease from the prior year, primarily due to negative currency translations and divestitures. However, the 4 percent organic sales growth is a strong indicator of the company's ability to generate growth through core operations.
Significantly, the adjusted operating profit increased by 16 percent, despite a substantial negative impact from currency translation. This was driven by a combination of organic growth, cost management and productivity gains. Additionally, the adjusted EPS rose by 19 percent to $1.96, reflecting effective operational strategies and emphasizing the company's profitability.
The updated 2024 outlook with anticipated adjusted operating profit and EPS growth in the mid-to-high teens range also signals continued future strength, which should bolster investor confidence. However, the negative impact of currency translation remains a concern and could pose risks to reported financial metrics.
For investors, the strong organic growth and improved profitability are positive signs, though currency impacts and economic uncertainties should be monitored closely.
The market dynamics and strategic moves by Kimberly-Clark in various regions provide a comprehensive picture of its business health. Notably, organic sales increased in North America and Developing and Emerging (D&E) markets, driven by both volume and pricing gains. This growth is a positive indicator of Kimberly-Clark's ability to adapt to varied market conditions and consumer needs.
The consumer tissue segment experienced a decline in sales, impacted by retailer inventory reductions in North America and lower pricing in Europe. It is essential for investors to note the strategic adjustments in pricing to manage higher local costs, which reflect the company’s proactive approach to cost management in hyperinflationary economies like Argentina.
The performance in the Personal Care segment is particularly encouraging with an 8 percent organic sales increase driven by innovation and solid execution. This segment's growth underscores the company's focus on product innovation and supply improvements, which are important for long-term sustainability.
For retail investors, the diverse performance across segments highlights the company's balanced portfolio and strategic agility, which are important factors for sustained growth and market competitiveness.
The company's second quarter results also bring to light some notable legal and regulatory considerations, especially regarding its 2024 Transformation Initiative. This initiative involves significant restructuring costs and operational changes, illustrated by the $190 million incurred in the second quarter. Investors should be aware of potential regulatory scrutiny and compliance issues that can arise from such large-scale transformations.
Additionally, the ongoing impacts of divestitures and business exits, like the sale of the Brazilian Tissue and K-C Professional business, highlight Kimberly-Clark's strategic effort to streamline operations. This can lead to immediate cost savings but also requires careful attention to legal obligations and potential liabilities that may arise during the transition period.
For retail investors, understanding these legal and regulatory landscapes is critical. While the restructuring and divestitures present opportunities for operational efficiencies, they come with inherent legal risks that could affect financial performance and corporate governance.
Delivers net sales of
Strong EPS expansion driven by innovation-led volume gains, effective cost management and productivity
Company increases 2024 earnings outlook to reflect strong first half
"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."
Quarter Highlights
- Net sales of
$5.0 billion - Reported gross margin was 36.0 percent, adjusted gross margin was 36.9 percent, up 290 basis points versus the prior year, driven by organic net sales growth and gross productivity gains.
- Diluted earnings per share were
$1.61 $1.96 $0.12
Second Quarter 2024 Results
Second quarter sales of
In
In D&E markets, organic sales rose 12 percent reflecting both pricing gains as well as volume and mix gains. Organic sales for Developed Markets were 3 percent lower, driven by lower pricing that primarily reflected comparisons with temporary, energy surcharge-related price increases in
Second quarter operating profit was
Net interest expense was
The second quarter effective tax rate was 15.1 percent. On an adjusted basis, the effective rate in the second quarter was 20.9 percent compared to 20.5 percent in the prior year.
Net income of equity companies was
Diluted EPS was
Year-To-Date Results
For the first half of the year, sales of
Year-to-date operating profit was
Year-to-date adjusted operating profit was
Through the first half of the year, diluted earnings per share were
Business Segment Net Sales Results
Q2 change vs year ago (%) | Volume | Mix/Other | Price | Divestitures | Currency | Total(b) | Organic(c) | |||||||
Personal Care | 3 | 1 | 4 | — | (8) | — | 8 | |||||||
4 | 1 | — | — | — | 5 | 5 | ||||||||
D&E Markets | 2 | 1 | 12 | — | (20) | (5) | 15 | |||||||
Developed Markets | (1) | — | (2) | — | (2) | (6) | (4) | |||||||
Consumer Tissue | — | — | (1) | (2) | — | (4) | (2) | |||||||
(3) | (1) | 2 | — | — | (2) | (2) | ||||||||
D&E Markets | — | (1) | (3) | (11) | (1) | (15) | (4) | |||||||
Developed Markets | 5 | — | (6) | — | (1) | (2) | (1) | |||||||
KC Professional | — | 1 | (1) | (3) | (2) | (5) | — | |||||||
(3) | — | (1) | — | — | (4) | (4) | ||||||||
D&E Markets | 7 | 1 | 10 | (16) | (12) | (10) | 20 | |||||||
Developed Markets | 3 | 1 | (9) | — | (1) | (5) | (4) | |||||||
Consolidated | 1 | — | 2 | (1) | (5) | (2) | 4 |
YTD change vs year ago (%) | Volume | Mix/Other | Price | Divestitures | Currency | Total(b) | Organic(c) | |||||||
Personal Care | 2 | 1 | 6 | — | (9) | — | 9 | |||||||
3 | 1 | — | — | — | 4 | 4 | ||||||||
D&E Markets | 3 | 1 | 16 | — | (22) | (2) | 19 | |||||||
Developed Markets | (2) | — | (1) | — | (2) | (5) | (3) | |||||||
Consumer Tissue | — | — | (1) | (2) | — | (3) | (1) | |||||||
— | — | 2 | — | — | 2 | 2 | ||||||||
D&E Markets | (4) | — | (3) | (12) | (1) | (20) | (8) | |||||||
Developed Markets | 4 | — | (5) | — | — | (2) | (1) | |||||||
KC Professional | (1) | 1 | 1 | (3) | (2) | (4) | 1 | |||||||
(3) | 1 | — | — | — | (2) | (3) | ||||||||
D&E Markets | 3 | 1 | 12 | (14) | (11) | (11) | 17 | |||||||
Developed Markets | 3 | 1 | (7) | — | (1) | (3) | (3) | |||||||
Consolidated | 1 | 1 | 3 | (1) | (5) | (1) | 5 |
(a) | Impact of the sale of |
(b) | Total may not equal the sum of volume, mix/other, net price, divestitures and business exits and currency due to rounding and excludes intergeographic sales. |
(c) | Combined impact of changes in volume, mix/other and net price excluding prior year's impact of divestitures and business exits. |
Personal Care Segment
Personal Care sales of
Second quarter operating profit of
Consumer Tissue Segment
Consumer Tissue sales of
Second quarter operating profit of
K-C Professional (KCP) Segment
KCP sales of
Second quarter operating profit of
Cash Flow and Balance Sheet
Year-to-date cash provided by operations was
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.
Supplemental Materials and Live Webcast
Supplemental materials will be available at approximately 6:30 a.m. Eastern Daylight Time in the Investor Relations section of www.kimberly-clark.com. The company will host a live Q&A session with investors and analysts on July 23, 2024, at 8:00 a.m. Eastern Daylight Time. The supplemental materials and Kimberly-Clark's Q&A session can be accessed at investor.kimberly-clark.com. A replay of the webcast will be available following the event through the same website.
About Kimberly-Clark
Kimberly-Clark (NYSE: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Fueled by ingenuity, creativity, and an understanding of people's most essential needs, we create products that help individuals experience more of what's important to them. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. We use sustainable practices that support a healthy planet, build strong communities, and ensure our business thrives for decades to come. We are proud to be recognized as one of the World's Most Ethical Companies(R) by Ethisphere for the fifth year in a row. To keep up with the latest news and to learn more about the company's 150-year history of innovation, visit kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy statements and other SEC filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made available free of charge on the company's website on the same day they are filed with the SEC. To view these filings, visit the Investors section of the company's website.
Forward Looking Statements
Certain matters contained in this news release concerning the business outlook, including raw material, energy and other input costs, the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, growth initiatives, innovations, marketing and other spending, net sales, anticipated currency rates and exchange risks, including the impact in
The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including the risk that we are not able to realize the anticipated benefits of the 2024 Transformation Initiative (including risks related to disruptions to our business or operations or related to any delays in implementation), war in
The factors described under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made by us or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results.
Non-GAAP Financial Measures
This news release and the accompanying tables include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the
- Adjusted earnings and earnings per share
- Adjusted gross and operating profit
- Adjusted effective tax rate
These non-GAAP financial measures exclude the following items for the relevant time periods as indicated in the accompanying non-GAAP reconciliation tables:
- 2024 Transformation Initiative - In 2024, we initiated this transformation initiative to improve our focus on growth and reduce our structural cost base by reorganizing into three new business segments, making the corporate and regional overhead cost structures more efficient and optimizing our global supply chain. Results in 2024 include charges related to this program.
- Sale of
Brazil tissue and K-C Professional business. In the second quarter of 2023, we recognized a net benefit related to the sale of ourBrazil tissue and K-C Professional business. - Impairment of intangible assets. In the second quarter of 2023, we recognized non-cash charges related to the impairment of certain intangible assets related to Softex Indonesia and Thinx.
- Pension settlements. In 2023, we recognized pension settlement charges related to lump-sum distributions from pension plan assets exceeding the total of annual service and interest costs resulting in a recognition of deferred actuarial losses.
The income tax effect of these non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the Company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income Before Income Taxes and Equity Interests and Provision for income taxes.
The company provides these non-GAAP financial measures as supplemental information to our GAAP financial measures. Management and the company's Board of Directors use adjusted earnings, adjusted earnings per share and adjusted gross and operating profit to (a) evaluate the company's historical and prospective financial performance and its performance relative to its competitors, (b) allocate resources and (c) measure the operational performance of the company's business units and their managers. Management also believes that the use of an adjusted effective tax rate provides improved insight into the tax effects of our ongoing business operations.
Additionally, the Management Development and Compensation Committee of the company's Board of Directors has used certain of the non-GAAP financial measures when setting and assessing achievement of incentive compensation goals. These goals are based, in part, on the company's adjusted earnings per share.
Certain non-GAAP financial measures referenced in this news release are presented on a forward-looking basis. Kimberly-Clark does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. Please note that these items could be material to Kimberly-Clark's results calculated in accordance with GAAP.
This news release includes information regarding organic sales growth, which describes the impact of changes in volume, net selling prices and product mix excluding prior year's impact of divestitures and business exits on net sales. Changes in foreign currency exchange rates and divestitures and business exits also impact the year-over-year change in net sales.
KIMBERLY-CLARK CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Millions, except per share amounts) | |||||
Three Months Ended June 30 | |||||
2024 | 2023 | Change | |||
Net Sales | $ 5,029 | $ 5,134 | -2 % | ||
Cost of products sold | 3,219 | 3,403 | -5 % | ||
Gross Profit | 1,810 | 1,731 | +5 % | ||
Marketing, research and general expenses | 1,066 | 1,015 | +5 % | ||
Impairment of intangible assets | — | 658 | N.M. | ||
Other (income) and expense, net | 89 | (55) | N.M. | ||
Operating Profit | 655 | 113 | +480 % | ||
Nonoperating expense | (15) | (42) | -64 % | ||
Interest income | 9 | 9 | — | ||
Interest expense | (72) | (76) | -5 % | ||
Income Before Income Taxes and Equity Interests | 577 | 4 | N.M. | ||
(Provision for) benefit from income taxes | (87) | 32 | N.M. | ||
Income Before Equity Interests | 490 | 36 | N.M. | ||
Share of net income of equity companies | 63 | 50 | +26 % | ||
Net Income | 553 | 86 | +543 % | ||
Net (income) loss attributable to noncontrolling interests | (9) | 16 | N.M. | ||
Net Income Attributable to Kimberly-Clark Corporation | $ 544 | $ 102 | +433 % | ||
Per Share Basis | |||||
Net Income Attributable to Kimberly-Clark Corporation | |||||
Basic | $ 1.61 | $ 0.30 | +437 % | ||
Diluted | $ 1.61 | $ 0.30 | +437 % | ||
Cash Dividends Declared | $ 1.22 | $ 1.18 | +3 % | ||
Common Shares Outstanding | June 30 | ||||
2024 | 2023 | ||||
Outstanding shares as of | 337.0 | 338.2 | |||
Average diluted shares for three months ended | 338.0 | 338.9 | |||
Unaudited |
N.M. - Not Meaningful |
KIMBERLY-CLARK CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Millions, except per share amounts) | |||||
Six Months Ended June 30 | |||||
2024 | 2023 | Change | |||
Net Sales | $ 10,178 | $ 10,329 | -1 % | ||
Cost of products sold | 6,457 | 6,872 | -6 % | ||
Gross Profit | 3,721 | 3,457 | +8 % | ||
Marketing, research and general expenses | 2,105 | 1,939 | +9 % | ||
Impairment of intangible assets | — | 658 | N.M. | ||
Other (income) and expense, net | 108 | (40) | N.M. | ||
Operating Profit | 1,508 | 900 | +68 % | ||
Nonoperating expense | (30) | (58) | -48 % | ||
Interest income | 19 | 16 | +19 % | ||
Interest expense | (139) | (149) | -7 % | ||
Income Before Income Taxes and Equity Interests | 1,358 | 709 | +92 % | ||
Provision for income taxes | (271) | (141) | +92 % | ||
Income Before Equity Interests | 1,087 | 568 | +91 % | ||
Share of net income of equity companies | 124 | 93 | +33 % | ||
Net Income | 1,211 | 661 | +83 % | ||
Net (income) loss attributable to noncontrolling interests | (20) | 7 | N.M. | ||
Net Income Attributable to Kimberly-Clark Corporation | $ 1,191 | $ 668 | +78 % | ||
Per Share Basis | |||||
Net Income Attributable to Kimberly-Clark Corporation | |||||
Basic | $ 3.53 | $ 1.98 | +78 % | ||
Diluted | $ 3.52 | $ 1.97 | +79 % | ||
Cash Dividends Declared | $ 2.44 | $ 2.36 | +3 % | ||
Common Shares Outstanding | June 30 | ||||
2024 | 2023 | ||||
Average diluted shares for six months ended | 338.2 | 338.7 | |||
Unaudited |
N.M. - Not Meaningful |
KIMBERLY-CLARK CORPORATION NON-GAAP RECONCILIATIONS (Millions, except per share amounts) | ||||||
Three Months Ended June 30, 2024 | ||||||
As Reported | 2024 | As Adjusted Non-GAAP | ||||
Cost of products sold | $ 3,219 | $ 45 | $ 3,174 | |||
Gross Profit | 1,810 | (45) | 1,855 | |||
Marketing, research and general expenses | 1,066 | 70 | 996 | |||
Other (income) and expense, net | 89 | 75 | 14 | |||
Operating Profit | 655 | (190) | 845 | |||
Provision for income taxes | (87) | 73 | (160) | |||
Effective tax rate | 15.1 % | — | 20.9 % | |||
Net Income Attributable to Kimberly-Clark Corporation | 544 | (117) | 661 | |||
Diluted Earnings per Share(a) | 1.61 | (0.35) | 1.96 | |||
Three Months Ended June 30, 2023 | ||||||||||
As Reported | Sale of | Impairment of | Pension | As Adjusted Non-GAAP | ||||||
Cost of products sold | $ 3,403 | $ 15 | $ — | $ — | $ 3,388 | |||||
Gross Profit | 1,731 | (15) | — | — | 1,746 | |||||
Marketing, research and general expenses | 1,015 | 15 | — | — | 1,000 | |||||
Impairment of intangible assets | 658 | — | 658 | — | — | |||||
Other (income) and expense, net | (55) | (74) | — | — | 19 | |||||
Operating Profit | 113 | 44 | (658) | — | 727 | |||||
Nonoperating expense | (42) | — | — | (27) | (15) | |||||
(Provision for) benefit from income taxes | 32 | (18) | 175 | 7 | (132) | |||||
Effective tax rate | N.M. | — | — | — | 20.5 % | |||||
Net (income) loss attributable to noncontrolling interests | 16 | — | 20 | — | (4) | |||||
Net Income Attributable to Kimberly-Clark Corporation | 102 | 26 | (463) | (20) | 559 | |||||
Diluted Earnings per Share(a) | 0.30 | 0.08 | (1.36) | (0.06) | 1.65 | |||||
(a) | "As Adjusted Non-GAAP" may not equal "As Reported" plus "Adjustments" as a result of rounding. |
N.M. - Not Meaningful | |
Unaudited | |
KIMBERLY-CLARK CORPORATION NON-GAAP RECONCILIATIONS (Millions, except per share amounts) | ||||||
Six Months Ended June 30, 2024 | ||||||
As Reported | 2024 | As Adjusted Non-GAAP | ||||
Cost of products sold | $ 6,457 | $ 45 | $ 6,412 | |||
Gross Profit | 3,721 | (45) | 3,766 | |||
Marketing, research and general expenses | 2,105 | 115 | 1,990 | |||
Other (income) and expense, net | 108 | 75 | 33 | |||
Operating Profit | 1,508 | (235) | 1,743 | |||
Provision for income taxes | (271) | 84 | (355) | |||
Effective tax rate | 20.0 % | — | 22.3 % | |||
Net Income Attributable to Kimberly-Clark Corporation | 1,191 | (151) | 1,342 | |||
Diluted Earnings per Share(a) | 3.52 | (0.45) | 3.97 | |||
Six Months Ended June 30, 2023 | ||||||||||
As Reported | Sale of | Impairment of | Pension | As Adjusted Non-GAAP | ||||||
Cost of products sold | $ 6,872 | $ 15 | $ — | $ — | $ 6,857 | |||||
Gross Profit | 3,457 | (15) | — | — | 3,472 | |||||
Marketing, research and general expenses | 1,939 | 15 | — | — | 1,924 | |||||
Impairment of intangible assets | 658 | — | 658 | — | — | |||||
Other (income) and expense, net | (40) | (74) | — | — | 34 | |||||
Operating Profit | 900 | 44 | (658) | — | 1,514 | |||||
Nonoperating expense | (58) | — | — | (27) | (31) | |||||
Provision for income taxes | (141) | (18) | 175 | 7 | (305) | |||||
Effective tax rate | 19.9 % | — | — | — | 22.6 % | |||||
Net (income) loss attributable to noncontrolling interests | 7 | — | 20 | — | (13) | |||||
Net Income Attributable to Kimberly-Clark Corporation | 668 | 26 | (463) | (20) | 1,125 | |||||
Diluted Earnings per Share(a) | 1.97 | 0.08 | (1.36) | (0.06) | 3.32 | |||||
(a) "As Adjusted Non-GAAP" may not equal "As Reported" plus "Adjustments" as a result of rounding. | |
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. The company compensates for these limitations by using these non-GAAP financial measures as a supplement to the GAAP measures and by providing reconciliations of the non-GAAP and comparable GAAP financial measures. | |
Unaudited |
KIMBERLY-CLARK CORPORATION CONSOLIDATED BALANCE SHEETS (Millions) | |||
June 30, 2024 | December 31, 2023 | ||
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | $ 1,163 | $ 1,093 | |
Accounts receivable, net | 2,306 | 2,135 | |
Inventories | 1,915 | 1,955 | |
Other current assets | 565 | 520 | |
Total Current Assets | 5,949 | 5,703 | |
Property, Plant and Equipment, Net | 7,620 | 7,913 | |
Investments in Equity Companies | 381 | 306 | |
Goodwill | 2,019 | 2,085 | |
Other Intangible Assets, Net | 183 | 197 | |
Other Assets | 1,128 | 1,140 | |
TOTAL ASSETS | $ 17,280 | $ 17,344 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current Liabilities | |||
Debt payable within one year | $ 806 | $ 567 | |
Trade accounts payable | 3,613 | 3,653 | |
Accrued expenses and other current liabilities | 2,184 | 2,316 | |
Dividends payable | 408 | 394 | |
Total Current Liabilities | 7,011 | 6,930 | |
Long-Term Debt | 7,158 | 7,417 | |
Noncurrent Employee Benefits | 640 | 669 | |
Deferred Income Taxes | 380 | 374 | |
Other Liabilities | 784 | 860 | |
Redeemable Preferred Securities of Subsidiaries | 26 | 26 | |
Stockholders' Equity | |||
Kimberly-Clark Corporation | 1,136 | 915 | |
Noncontrolling Interests | 145 | 153 | |
Total Stockholders' Equity | 1,281 | 1,068 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 17,280 | $ 17,344 | |
2024 Data is Unaudited |
KIMBERLY-CLARK CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions) | ||||
Six Months Ended June 30 | ||||
2024 | 2023 | |||
Operating Activities | ||||
Net income | $ 1,211 | $ 661 | ||
Depreciation and amortization | 373 | 377 | ||
Asset impairments | 5 | 676 | ||
Stock-based compensation | 71 | 71 | ||
Deferred income taxes | (79) | (238) | ||
Net (gains) losses on asset and business dispositions | 83 | (71) | ||
Equity companies' earnings (in excess of) less than dividends paid | (82) | (60) | ||
Operating working capital | (135) | (35) | ||
Postretirement benefits | 3 | 26 | ||
Other | 9 | (7) | ||
Cash Provided by Operations | 1,459 | 1,400 | ||
Investing Activities | ||||
Capital spending | (352) | (389) | ||
Proceeds from asset and business dispositions | 14 | 218 | ||
Investments in time deposits | (242) | (388) | ||
Maturities of time deposits | 235 | 470 | ||
Other | (31) | 14 | ||
Cash Used for Investing | (376) | (75) | ||
Financing Activities | ||||
Cash dividends paid | (809) | (790) | ||
Change in short-term debt | 7 | (307) | ||
Debt proceeds | — | 357 | ||
Debt repayments | — | (350) | ||
Proceeds from exercise of stock options | 41 | 96 | ||
Acquisitions of common stock for the treasury | (156) | (63) | ||
Cash paid for redemption of common securities of Thinx | — | (48) | ||
Cash dividends paid to noncontrolling interests | (19) | (16) | ||
Other | (62) | (31) | ||
Cash Used for Financing | (998) | (1,152) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (15) | (20) | ||
Change in Cash and Cash Equivalents | 70 | 153 | ||
Cash and Cash Equivalents - Beginning of Period | 1,093 | 427 | ||
Cash and Cash Equivalents - End of Period | $ 1,163 | $ 580 | ||
Unaudited |
KIMBERLY-CLARK CORPORATION SELECTED BUSINESS SEGMENT DATA (Millions) | ||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
NET SALES | ||||||||||||
Personal Care | $ 2,692 | $ 2,685 | — | $ 5,405 | $ 5,389 | — | ||||||
Consumer Tissue | 1,486 | 1,549 | -4 % | 3,085 | 3,183 | -3 % | ||||||
K-C Professional | 841 | 887 | -5 % | 1,664 | 1,734 | -4 % | ||||||
Corporate & Other | 10 | 13 | N.M. | 24 | 23 | N.M. | ||||||
TOTAL NET SALES | $ 5,029 | $ 5,134 | -2 % | $ 10,178 | $ 10,329 | -1 % | ||||||
OPERATING PROFIT | ||||||||||||
Personal Care | $ 540 | $ 472 | +14 % | $ 1,085 | $ 959 | +13 % | ||||||
Consumer Tissue | 245 | 200 | +23 % | 535 | 440 | +22 % | ||||||
K-C Professional | 186 | 187 | -1 % | 374 | 346 | +8 % | ||||||
Corporate & Other(a) | (227) | (801) | N.M. | (378) | (885) | N.M. | ||||||
Other (income) and expense, net(a) | 89 | (55) | N.M. | 108 | (40) | N.M. | ||||||
TOTAL OPERATING PROFIT | $ 655 | $ 113 | +480 % | $ 1,508 | $ 900 | +68 % | ||||||
(a) | Corporate & Other and Other (income) and expense, net include income and expense not associated with the ongoing operations of the business segments, including adjustments as indicated in the Non-GAAP Reconciliations. |
Unaudited | |
N.M. - Not Meaningful | |
[KMB-F]
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SOURCE Kimberly-Clark Corporation
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