Kimberly-Clark reports stable performance in Q1 2025, driven by innovation and share gains
Results were impacted by divestitures and exit from the U.S. private label diaper segment; company bets on innovation and productivity to support global growth
Kimberly-Clark reported net sales of $4.8 billion in the first quarter of 2025, a 6% decline compared to the same period last year. The performance was primarily impacted by negative currency effects and strategic business exits, including the divestiture of its personal protective equipment (PPE) division and the discontinuation of its U.S. private label diaper operations. Organic sales declined by only 1.6%, reflecting a 1.5% drop in pricing, while volume and mix remained flat.
According to CEO Mike Hsu, the company continues to advance its “Powering Care” strategy, built on the pillars of innovation, operational excellence, and brand strength. “Despite the evolving external landscape, our first quarter was consistent with our full-year plan. […] Our strong productivity momentum is fueling investments to advance our competitive advantage and driving profitability,” he said.
BABY DIAPERS AND PROFESSIONAL LINE UNDERGO STRATEGIC REPOSITIONING
In North America, net sales reached $2.7 billion, down 3.9% compared to the same period in 2024. The decline was largely due to the PPE divestiture and the exit from the private label diaper business. Organic sales dropped just 0.6%, driven by price reductions – part of a strategic investment to optimize the Baby and Child Care portfolio and enhance the value proposition in the Professional segment.
Despite lower sales, North America operating profit rose 1.3%, supported by productivity gains and optimized spending in marketing, sales, R&D, and general expenses.
In the International Personal Care segment – which includes markets across Latin America, Europe, and Asia – net sales totaled $1.4 billion, a decline of 8.9%. Organic sales fell by 2.8%, primarily due to price investments aimed at boosting competitiveness across various value tiers. Operating profit for this segment dropped 19.8%, impacted by unfavorable currency effects and strategic price adjustments.
The International Family Care and Professional (IFP) division reported net sales of $791 million, down 7.7%, with organic sales declining 2.3%. The drop was mainly driven by pricing investments to remain competitive across Family Care markets. Operating profit came in at $106 million, down 3.6%, as productivity savings and favorable costs partially offset currency headwinds.
PROJECTIONS FOR 2025 HAVE BEEN ADJUSTED IN THE FACE OF HIGHER COSTS
Kimberly-Clark has revised its 2025 guidance considering macroeconomic and geopolitical uncertainties. The company still expects organic sales growth to outpace the category and country averages, which are currently expanding in the range of 1.5% to 2%. However, adjusted operating profit is now expected to be flat to slightly positive in constant currency, compared to the previous outlook of high single-digit growth, reflecting higher input costs and FX headwinds.
The company also lowered its adjusted free cash flow forecast to approximately $2 billion, down from its previous estimate of more than $2 billion. It expects a 320 basis point negative impact from the PPE divestiture and the U.S. private label diaper exit.
Kimberly-Clark remains committed to innovation and product architecture across the “good-better-best” value spectrum, a strategy that continues to resonate with consumers globally and positions the company to maintain and expand market share in the disposable personal care industry.
