Consumer goods multinational Kimberly-Clark reported net sales of $5.1 billion in the first quarter of 2022, an increase of 7% compared to the year-ago period. On the other hand, it reported a 10.4% drop in net income compared to the previous year, totaling US$ 523 million in the period.
“I’m pleased with our team’s continued excellent execution during this volatile and highly inflationary environment,” said Mike Hsu, CEO of K-C, in a statement. According to the executive, the company achieved organic growth in sales in all segments during the quarter.
The results were beyond market expectations. The income was higher than the estimated value of $4.91 billion, while adjusted earnings per share were $1.35, beating analysts’ projection of $1.24.
Within the company’s businesses, the highlight was the 11% growth in sales from the personal care unit, to US$ 2.72 billion. Sales in consumer tissue advanced 4%, to US$ 1.56 billion, while K-C Professional increased 4% in sales, to US$ 780 million.
With the results, Kimberly-Clark raised its estimates for 2022, predicting a 2% to 4% increase in sales, compared to 1% to 2% in the previous projection. However, cost pressure is expected to affect operating profit.