Kimberly-Clark’s Sales Increase 7%

Kimberly-Clark’s sales of $5 billion in the third quarter of 2021 increased 7% versus the prior year. Changes in foreign currency exchange rates increased sales 1% and the net impact of the Softex Indonesia acquisition and exited businesses in conjunction with the 2018 Global Restructuring Program increased sales 2%. Organic sales increased 4% as net selling prices rose 3% and product mix increased sales 1%.

In North America, organic sales increased 3% in consumer products and 16% in K-C Professional. Outside North America, organic sales were up 6% in developing and emerging (D&E) markets and were even with year-ago in developed markets.

In the Consumer Tissue Segment, third quarter sales of $1.5 billion decreased 5 percent.  Changes in currency rates increased sales 1 percent.  Volumes declined 7 percent while net selling prices increased sales 1 percent.  The volume comparison reflects elevated shipments in North America and developed markets in the year-ago period to support higher consumer and customer demand related to the global outbreak of COVID-19.  Third quarter operating profit of $222 million decreased 30 percent.  The comparison was impacted by lower organic sales, higher input costs and other manufacturing cost increases, including inefficiencies from lower production volumes.  Results benefited from cost savings and reduced marketing, research and general spending.

Sales in North America decreased 8 percent.  Volumes fell 8 percent and product mix was down 1 percent, while net selling prices improved 1 percent.

Sales in D&E markets increased 5 percent including a 1 point favorable impact from changes in currency rates.  Net selling prices rose 3 percent, product mix improved approximately 1 percent while volumes were down 3 percent.  The Softex Indonesia acquisition increased sales 4 percent.

Sales in developed markets outside North America decreased 6 percent.  Volumes were down 6 percent while net selling prices rose 1 percent.  Exited businesses related to the 2018 Global Restructuring program reduced sales 4 percent while change in currency rates increased sales 3 percent.

In K-C Professional (KCP) Segment, third quarter sales of $0.8 billion increased 13 percent.  Volumes increased 6 percent, net selling prices rose 5 percent and product mix improved slightly.  Changes in currency rates increased sales 1 percent.  Third quarter operating profit of $96 million increased 10 percent.  Results benefited from organic sales growth, cost savings, lower other manufacturing costs, and reduced marketing, research and general spending.  The comparison was impacted by higher input costs.

Sales in North America increased 16 percent.  Volumes increased approximately 10 percent and net selling prices rose 6 percent.  Product mix and currency rates each increased sales slightly.  Sales were up significantly in washroom products reflecting comparison to weak year-ago period.

Sales in D&E markets increased 14 percent including a 1 point benefit from changes in currency rates.  Volumes rose approximately 10 percent, compared to a soft year-ago period, net selling prices increased 3 percent and product mix improved 1 percent.

Sales in developed markets outside North America were up 3 percent including a 3 percent benefit from changes in currency rates.  Net selling prices increased 5 percent while volumes decreased 5 percent.