Kimberly-Clark Reports Third Quarter 2024 Financial Results
Kimberly-Clark Corporation (NYSE: KMB) announced its financial performance for the third quarter of 2024, showcasing resilience in challenging market conditions through effective execution and strategic initiatives.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates | Actual vs. Consensus |
|---|---|---|---|---|---|
| Total Revenue | $5.0 billion | $5.2 billion | -4% | $5.05 billion | Miss |
| Diluted EPS (Adjusted) | $1.83 | NA | +5% | $1.70 | Beat |
Kimberly-Clark reported third quarter sales of $5.0 billion, which were slightly below consensus estimates, marking a 4% year-over-year decrease primarily attributed to foreign currency impacts and divestitures. However, the adjusted EPS of $1.83 exceeded both prior year figures and market expectations, reflecting strong operational efficiencies and productivity gains despite a challenging economic environment.
Revenue Performance by Segment
| Segment | Revenue Q3 2024 | Organic Sales Growth | Performance Interpretation |
|---|---|---|---|
| Personal Care | $2.6 billion | +3% | Growth bolstered by strategic pricing and new product innovations. |
| Consumer Tissue | $1.5 billion | -1% | Decline driven by retailer inventory adjustments and price normalization in Europe. |
| K-C Professional | $767 million | -1% | Performance affected by divestitures and price corrections in Western Europe. |
The Personal Care segment showed robust organic growth supported by pricing strategies and innovative product launches. Consumer Tissue faced headwinds mainly from retailer inventory reductions and price decreases, while K-C Professional was impacted by portfolio adjustments and currency pressures.
Operational Highlights
- Net sales of $5.0 billion, reflecting a 4% decrease influenced by foreign exchange and divestitures.
- Strong adjusted gross margin of 36.7%, with significant productivity improvements.
- Divestiture of PPE business contributing a notable gain of $565 million.
- The company returned $2.0 billion to shareholders via dividends and stock repurchases.
Comments from Management
Mike Hsu, Chairman and CEO of Kimberly-Clark, remarked on the company's transformation and growth strategies, emphasizing successful market share gains and productivity enhancements. He highlighted the 'Powering Care' strategy aimed at accelerating innovation and cost optimization to sustain momentum into 2025.
Dividends and Share Repurchase Program
Kimberly-Clark continues to prioritize shareholder returns, confirming $2.0 billion distributed to investors through dividends and share repurchases in the year-to-date period.
Forward Guidance
The company anticipates organic net sales growth in the range of 3%-4% for the full year 2024, adjusting expectations for currency impacts and divestitures. Adjusted EPS is expected to see mid-to-high teens growth on a constant-currency basis, underpinned by operational efficiency and strategic initiatives.
Stock Market Reaction
Following the earnings release, Kimberly-Clark's stock saw a modest increase of approximately 0.41%, reflecting investor optimism about the company's strategic direction and operational resilience despite mixed headline figures.
These results underscore Kimberly-Clark's focus on leveraging innovation and efficiency to navigate a dynamic market landscape while delivering value to its stakeholders.
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