North American multinational Kimberly-Clark released its results for the third quarter of 2022. Sales of $5.1 billion in the third quarter of 2022 increased 1% compared to the year-ago period. Organic sales increased 5% as net selling prices rose 9% and product mix increased sales 1% while volumes declined 5%. Changes in foreign currency exchange rates reduced sales 4%.
In North America, organic sales decreased 2% in consumer products and increased 5% in K-C Professional. Outside North America, organic sales rose 11% in both developing and emerging (D&E) and developed markets.
According to the company, the results were impacted by higher input costs, which total US$ 360 million. “Lower volumes, higher marketing, research and general expense as well as unfavorable foreign currency effects reduced operating profit in the quarter,” K-C said.
For the consumer tissue segment, third-quarter sales of $1.6 billion increased 2%. Net selling prices increased sales 9% while volumes declined approximately 3%. Changes in foreign currency exchange rates reduced sales 4%. In North America, sales increased 5% and higher net selling prices were achieved across all sub-segments while volume decline was primarily in bathroom tissue.
Third quarter sales of $0.8 billion increased 5% for K-C Professional (KCP) Segment. Third quarter operating profit of $119 million increased 24 percent. The company said the results benefited from higher net selling prices and cost savings. The comparison was impacted by input cost inflation, lower volumes and unfavorable foreign currency effects. Sales in North America increased 5 percent. Washroom products sales were up double-digits while sales of safety products decreased versus a strong year-ago.
Personal care revenue fell 1% to $2.62 billion, with sales shrinking 4% on changes in foreign currency exchange rates. In North America, sales decreased 5%, with lower volumes and higher prices. The company said organic sales growth was strong across Latin America and the Asia-Pacific region.
“Our third quarter results reflect strong execution by our teams around the world in the face of a challenging macro environment,” said Chairman and CEO Mike Hsu.
COMPANY DOES NOT COMMENT ON SALE OF TISSUE ASSETS TO SUZANO
In the press release, Kimberly-Clark did not comment on the sale of Brazilian tissue paper assets to Suzano, for US$ 175 million, announced earlier this week.