Kimberly-Clark profit drops 77% in the second quarter
The company's net sales reached US$ 5.1 billion, with growth of 1% in the annual comparison
The multinational Kimberly-Clark released the financial results for the second quarter of 2023, registering a net income of US$ 102 million between April and June, a decrease of 77% compared to the same period in the previous year. The company’s net sales reached US$ 5.1 billion in the interval, with growth of 1% in the annual comparison.
“We delivered another quarter of good performance in organic sales and expansion of margins,”, said Chairman and CEO Mike Hsu. “Continued improvement in gross margin positions us well to invest in superior brand value propositions, including innovation and digital leadership, which will help grow our market shares over time and deliver balanced and sustainable growth for long-term shareholder value.”
The organic sales of the company grew 5%, driven by a 9% increase in price and favorable product mix from ongoing revenue growth management programs, offset by a 3% decrease in volume. Changes in foreign currency exchange rates decreased sales by approximately 4%.
In North America, organic sales increased 6 percent over last year, including increases of 1 percent in Personal Care, 7 percent in Consumer Tissue and 17 percent in K-C Professional.
In view of the results, the company increased its expectations for the year, raising the estimate of organic sales to around 3% to 5% – with an increase of one percentage point – and an adjusted earnings per share between 10% and 14% – rising four percentage points.
In June, Kimberly-Clark concluded the sale of its tissue assets in Brazil to Suzano, for US$ 175 million, starting to focus on the personal care segment in the country.
