Kimberly-Clark (NYSE: KMB) Delivers Solid Results in First Year of Transformation

Kimberly-Clark Corporation reported its fourth-quarter and full-year 2024 results, showcasing a robust performance driven by its innovation-led growth model. The company’s strategic Powering Care initiative, launched in 2024, set a strong foundation for future growth, exceeding their long-term growth algorithm for the year. With a focus on volume gains, product mix improvements, and operational efficiencies, Kimberly-Clark aimed at reinvesting in brands and new capabilities while ensuring attractive returns for shareholders.

In the fourth quarter of 2024, Kimberly-Clark achieved net sales of $4.9 billion, with organic sales growth of 2.3 percent. The company’s gross margin stood at 34.0 percent, with adjusted gross margin increasing to 35.4 percent, mainly due to productivity gains offsetting investments and manufacturing cost challenges. Operating profit for the quarter was $548 million, while adjusted operating profit reached $684 million, up 2.1 percent. Diluted earnings per share were reported at $1.34, with adjusted earnings per share at $1.50, a 0.7 percent decrease from the prior year.

For the full year 2024, Kimberly-Clark recorded net sales of $20.1 billion, facing a 1.8 percent decrease primarily due to currency translation impacts and divestitures. Organic sales saw growth of 3.2 percent, driven by pricing in hyperinflationary economies and volume expansion. The company’s gross margin stood at 35.8 percent, with adjusted gross margin reaching 36.5 percent, showcasing a 200 basis points expansion. Operating profit for 2024 was $3.2 billion, including gains from divestitures and charges related to the 2024 Transformation Initiative.

Looking ahead to 2025, Kimberly-Clark foresees continued organic growth and operating momentum as its transformation progresses. The company expects Organic Sales Growth to surpass industry averages, with Reported Net Sales likely impacted by currency translation and divestitures. Adjusted Operating Profit is projected to grow at a high single-digit rate, albeit with negative impacts from divestitures and other factors. Adjusted Earnings per Share are anticipated to rise at a mid-to-high single-digit rate, despite negative impacts from various operational and financial considerations.

The financial results highlight Kimberly-Clark’s steadfast commitment to its strategic goals while navigating market challenges. The company’s ongoing transformation initiatives and strategic investments position it well to drive future growth and value for stakeholders.

This article also includes details about the company’s Business Segment Results, Cash Flow, Balance Sheet, 2025 Outlook, and incorporates elements like reconciliation of non-GAAP financial measures. For supplemental materials and further insights, interested parties can access Kimberly-Clark’s Investor Relations section on their official website.

References:
1. KMB 8-K SEC Filing, Exhibit 99.1

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kimberly-Clark’s 8K filing here.

About Kimberly-Clark

Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care and consumer tissue products in the United States. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional. The company’s Personal Care segment offers disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Thinx, Poise, Depend, Plenitud, Softex, and other brand names.