Kimberly-Clark Announces Year-End 2022 Results

Kimberly-Clark Corporation reported year-end 2022. The company’s sales of $5 billion in the fourth quarter of 2022 were even with the year-ago period. Organic sales increased 5% as net selling prices rose approximately 10% and product mix increased sales 1% while volumes declined 7%. Changes in foreign currency exchange rates reduced sales 5%.

In North America, organic sales increased 1 % in consumer products and increased 18 % in K-C Professional. Outside North America, organic sales rose 3 % in developing and emerging (D&E) markets and 11 % in developed markets.

Fourth quarter operating profit was $712 million in 2022 and $521 million in 2021. Excluding the charges related to the 2018 Global Restructuring Program, 2021 adjusted operating profit was $611 million.

“Kimberly-Clark delivered 7% organic growth in 2022 and an average of 4# organic growth on a three-year basis,” said Chairman and CEO Mike Hsu. “Our growth strategy is working with the support of excellent execution by our teams around the world and investments in our strong brands and commercial capabilities.”

CONSUMER TISSUE SEGMENT

Fourth quarter sales of $1.6 billion was even with year-ago with organic sales up 5 %. Net selling prices increased sales 11 % while volumes declined 6 %. Changes in foreign currency exchange rates reduced sales 5 %. Fourth quarter operating profit of $239 million increased 19 %. Results benefited from higher net selling prices and cost savings. The comparison was impacted by input cost inflation, lower volumes and the associated fixed cost under absorption, as well as unfavorable foreign currency effects.

Sales in North America increased 2 %. Net selling prices rose 8 % while volumes declined 6 %.

Sales in D&E markets decreased 1 %. Changes in foreign currency exchange rates decreased sales 6 %. Net selling prices rose 13 % and product mix improved 1 point, while volumes were down 9 %.

Sales in developed markets outside North America decreased 3 %. Changes in foreign currency exchange rates decreased sales 14 %. Net selling prices rose approximately 16 %, with strong pricing gains across all markets, while volumes declined 5 points.

 

K-C PROFESSIONAL (KCP) SEGMENT

Fourth quarter sales of $0.8 billion increased 11 %, including organic sales growth of 16 %. Net selling prices rose 20 %, product mix improved sales 1 point while volumes declined 5 %. Changes in foreign currency exchange rates decreased sales 5 %. Fourth quarter operating profit of $163 million increased 126 %. Results benefited from higher net selling prices, favorable product mix and cost savings. The comparison was impacted by input cost inflation, lower volumes as well as unfavorable foreign currency effects.

Sales in North America increased 17 %. Net selling prices rose 19 %, product mix increased sales 1 point while volumes declined 2 %. Changes in foreign currency exchange rates decreased sales 1 %.  Washroom products and wipers sales were up double-digits while the sale of safety products normalized following elevated demand throughout 2021.

Sales in D&E markets increased 3 %. Net selling prices increased 11 % and product mix increased sales 2 points while volumes declined 3 %. Changes in foreign currency exchange rates decreased sales 7 %.

Sales in developed markets outside North America increased 1 %. Net selling prices increased 30 % and product mix improved sales 3 points while volumes declined 17 %, primarily driven by Western Europe. Changes in foreign currency exchange rates reduced sales 15 %.

PERSONAL CARE SEGMENT

Fourth quarter sales of $2.6 billion decreased 3 %, including organic sales growth of 2 %. Changes in foreign currency exchange rates reduced sales by 5 %. Net selling prices increased 7 % and product mix improved 2 points while volumes declined 7 %. The planned exit of a private label contract earlier this year and retailer inventory changes accounted for a 2 point headwind to global Personal Care sales.

Fourth quarter operating profit of $423 million was even with year-ago. Results benefited from higher net selling prices, favorable product mix and cost savings. The comparison was impacted by input cost inflation, lower volumes and associated fixed cost under absorption, higher marketing, research and general spending as well as unfavorable foreign currency effects.

Sales in North America were even with year-ago. Net selling prices increased 5 % and product mix improved 1 % while volume declined approximately 6 %, reflecting the planned exit of a private label contract earlier in the year as well as retailer inventory changes. The Thinx acquisition increased sales 1 point and changes in foreign currency exchange rates decreased sales approximately 1 %.

Sales in D&E markets decreased 6 %. Changes in foreign currency exchange rates decreased sales 8 %. Net selling prices increased sales 10 % and product mix improved 3 points while volumes declined 11 %. Organic sales growth was primarily driven by Latin America and China, offset by declines in Southeast Asia.

Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) decreased 4 %. Changes in foreign currency exchange rates reduced sales 14 %. Net selling prices increased sales 6 % while volumes and product mix each contributed 2 points of sales growth.