Consumer goods multinational Kimberly-Clark announced net income of $437 million in the second quarter of 2022, up 8.16% year-on-year. Net sales totaled US$ 5.06 billion, an increase of 7.22% compared to the year-ago period, supported by the increase in prices. Organic sales growth 9% in one year.
Sales of $5.1 billion in the second quarter of 2022 increased 7 percent compared to the year-ago period. Changes in foreign currency exchange rates reduced sales 2 percent. Organic sales increased 9 percent as net selling prices rose 9 percent, product mix increased sales 1 percent and volumes declined 1 percent.
In North America, organic sales increased 11 percent in consumer products and increased 8 percent in K-C Professional. Outside North America, organic sales rose 8 percent in developing and emerging (D&E) markets and 9 percent in developed markets.
“Our results also reflect ongoing market volatility and significant input cost inflation. We continue to be thoughtful with our response to inflation, focusing on providing value to our consumers while leveraging price and cost discipline to mitigate macro headwinds for margin improvement over time,” said Mike Hsu, Chairman and CEO, Kimberly-Clark.
Kimberly-Clark has not changed its 2022 net sales target from 2% to 4%, but now expects organic sales to increase by 5% to 7%. Key cost inputs expected to increase $1.4 to $1.6 billion (previous estimate $1.1 to $1.3 billion). Costs are projected to increase or remain elevated for most inputs, including pulp and other raw materials as well as distribution and energy.
In the Consumer Tissue Segment, second quarter sales of $1.5 billion increased 8 percent. Net selling prices increased sales 7 percent, volumes rose 3 percent and product mix improved sales 1 point. Changes in foreign currency exchange rates reduced sales 3 percent. Second quarter operating profit of $178 million decreased 9 percent. The comparison was impacted by input cost inflation and higher marketing, research and general spending. Results benefited from organic sales growth, lower other manufacturing costs and cost savings.
Sales in North America increased 14 percent. Volumes grew 7 percent, net selling prices improved 6 percent, and product mix increased sales 1 point. The volume growth reflects comparison to the COVID-related consumer and retailer inventory destocking in the year-ago period.
In the K-C Professional (KCP) Segment, second quarter sales of $0.8 billion increased 5 percent. Net selling prices rose 9 percent and product mix increased sales 2 points while volumes declined 3 percent. Changes in foreign currency exchange rates decreased sales 3 percent. Second quarter operating profit of $85 million decreased 23 percent. The comparison was impacted by input cost inflation, lower volumes and higher marketing, research and general spending. Results benefited from higher net selling prices and cost savings.
Sales in North America increased 8 percent. Net selling prices rose approximately 8 percent, product mix increased sales 2 percent while volumes declined 1 percent. Washroom products sales were up strong double-digits while sales of safety products decreased versus a strong year-ago.