Kimberly-Clark reports solid first-quarter 2024 profit

Kimberly-Clark reported net income of $647 million in the first quarter of 2024, an increase of 14% compared to the same period last year. Earnings per share came in at $1.91. However, revenue showed a 1% decline on a year-over-year basis, totaling $5.14 billion.

FactSet estimates called for earnings per share of $1.63 and revenue of $5.08 billion, but the company beat those expectations. In premarket trading on the New York Stock Exchange, Kimberly-Clark shares were seen trading up 4.65%, trading at $134.93.

The decrease in revenues was attributable to the negative impacts of foreign currency translation and the divestments made in the tissue business and the K-C Professional division in Brazil in June 2023.

On the other hand, organic sales posted 6% growth for the year, driven by a 4% increase in prices, a 1% difference in volume and a favorable product mix. Kimberly-Clark noted that the price-led gains reflected necessary measures to address higher local costs in hyperinflationary economies, especially in Argentina.

In North America, organic sales increased 3% compared to the prior year, driven by 2% growth in the personal care division and a 6% increase in hygiene products, partially offset by a 1% decline in the K-C Professional division.

Kimberly-Clark CEO Mike Hsu commented, “We continue our strong productivity momentum through efforts to optimize our margin structure and are making good progress in focusing our business as we move forward with the implementation of our new operating model.”