- Kimberly-Clark Corporation is a global manufacturer and marketer of personal care, consumer tissue, and professional products.
- The company's brands include Kleenex, Scott, Huggies, Depend, Kotex, U by Kotex, and Cottonelle.
- Kimberly-Clark products are sold in more than 175 countries and territories around the world.
- In the year 2022 Kimberly-Clark acquired a majority and controlling share of Thinx Inc.
Kimberly-Clark Corporation (NYSE: KMB, LSE: 0JQZ) is a global manufacturer and marketer of personal care, consumer tissue, and professional products. The company's brands include Kleenex, Scott, Huggies, Depend, Kotex, U by Kotex, and Cottonelle. Kimberly-Clark products are sold in more than 175 countries and territories around the world. Kimberly-Clark is a Fortune 500 company with annual sales of over $20 billion. The company employs over 45,000 people worldwide.
Kimberly-Clark Professional™ Expands the RightCycle™ programme to the Netherlands and Switzerland
April 11, 2023; Kimberly-Clark Professional, has expanded The RightCycle Programme to the Netherlands and Switzerland. The RightCycle Programme is the first large-scale recycling effort for non-hazardous lab, cleanroom and industrial personal protective equipment (PPE) waste. Originating in the U.S. with a few scientific manufacturing customers, the programme is now available in 11 countries with a wide range of customers that includes universities and research institutions, pharmaceutical and biotech companies as well as manufacturing facilities and other businesses. In addition to the U.S., the Netherlands and Switzerland, the programme is available in Canada, the U.K., Ireland, Germany, France, Belgium, Austria and Spain. Since 2011, it has helped hundreds of customers divert more than 2,000 metric tons of PPE waste.
In 2021, the company expanded The RightCycle Programme in Europe to other categories to include the recycling of plastic dispensers and hand towels. In 2022, it expanded the programme in the U.S. and Canada to accept flex-film plastic packaging from Kimtech™ and KleenGuard™ products. This will provide Kimberly-Clark Professional with an even greater opportunity to reduce its environmental footprint in collaboration with its customers.
Acquisition of Thinx Inc
On February 24, 2022, the company completed its acquisition of a majority and controlling share of Thinx Inc. (“Thinx”), an industry leader in the reusable period and incontinence underwear category, for total consideration of $181 consisting of cash of $53, the fair value of its previously held equity investment of $127, and certain share-based award costs of $1.
Kimberly-Clark to Sell Neve Tissue Brand in Brazil
On October 24, 2022, the company entered into an agreement to sell its Neve tissue brand and related consumer and K-C Professional tissue assets in Brazil for $175, subject to certain working capital and other closing adjustments. The transaction also includes a licensing agreement to allow the acquirer to manufacture and market in Brazil the Kleenex, Scott and Wypall brands to consumers and away-from-home customers for a period of time. The transaction is pending customary conditions and regulatory approval and is expected to close in the first half of 2023. The assets included in the sale agreement have been reclassified to Other current assets as of December 31, 2022.
First Quarter 2023 Results
April 25, 2023; Kimberly-Clark Corporation reported first quarter 2023 results. Comparisons are made versus the prior year period, unless otherwise noted.
First quarter sales of $5.2 billion increased 2 percent, with organic sales up 5 percent, driven by a 10 percent increase in price and favorable product mix from ongoing revenue growth management programs offset by a 5 percent decrease in volume. Changes in foreign currency exchange rates decreased sales by approximately 4 percent. On a combined two year basis, organic growth increased 8 percent.
In North America, sales increased 5 percent over last year, including increases of 2 percent in Personal Care, 5 percent in Consumer Tissue and 12 percent in K-C Professional. Outside North America, organic sales were up 4 percent in developing and emerging (D&E) markets and 10 percent in developed markets (Australia, South Korea and Western/Central Europe).
Gross margin improved by 340 basis points to 33.2 percent, with higher net revenue realization and cost savings offsetting higher input costs of $160 million. First quarter operating profit was $787 million compared to $693 million last year, resulting in an operating margin of 15.1 percent, an increase of 150 basis points. On an adjusted basis, operating profit increased by 25 percent, driven by higher gross profit including $105 million in FORCE (Focus on Reducing Costs Everywhere) savings, offset by planned marketing, research and general expenses. Inflation increased input costs by $160 million this quarter, driven primarily by fiber and energy costs. Unfavorable currency effects impacted operating profit by $75 million during the quarter. Operating margin of 15.1 percent increased 280 basis points over adjusted operating margin last year.
Net interest expense was $66 million, an increase of 5 percent over the prior year due to higher weighted average interest rate on outstanding debt. First quarter effective tax rate was 24.5 percent compared to reported rate of 18.2 percent and an adjusted rate of 21.0 percent last year due to benefits of certain tax planning initiatives.
Net income of equity companies was $43 million compared to $23 million last year driven by Kimberly-Clark de Mexico. EPS increased 8 percent to $1.67 per diluted share on a reported basis and increased 24 percent on an adjusted basis, driven by the 25 percent increase in operating profit versus adjusted results last year.
Full Year 2022 Results
Sales of $20.2 billion increased 4 percent. Organic sales increased 7 percent, as net selling prices rose 9 percent, product mix increased sales 1 point and volumes declined 3 percent. Changes in foreign currency exchange rates decreased sales by approximately 4 percent.
Operating profit was $2,681 million in 2022 and $2,561 million in 2021. Results in 2022 include the net benefit of the acquisition of a controlling interest of Thinx and 2021 results include charges related to the 2018 Global Restructuring Program.
Adjusted operating profit was $2,617 million in 2022 and $2,836 million in 2021. Results were impacted by $1.5 billion of higher input costs, higher marketing, research and general spending and unfavorable foreign currency effects. Results benefited from organic sales growth and $290 million of FORCE savings.
Diluted net income per share was $5.72 in 2022 and $5.35 in 2021. Adjusted earnings per share of $5.63 decreased 9 percent compared to $6.18 in 2021.
The company's capital spending was $876 in 2022 and $1,007 in 2021. Acquisition of business, net of cash acquired of $46 in 2022 reflected the acquisition of a controlling interest of Thinx. The company expect capital spending to be approximately $800 to $900 in 2023.
Kimberly-Clark Corporation is a global manufacturer and marketer of personal care, consumer tissue, and professional products. The company's brands include Kleenex, Scott, Huggies, Depend, Kotex, U by Kotex, and Cottonelle. Kimberly-Clark products are sold in more than 175 countries and territories around the world. Kimberly-Clark is a Fortune 500 company with annual sales of over $20 billion. The company employs over 45,000 people worldwide. Kimberly-Clark is principally engaged in the manufacturing and marketing of a wide range of products mostly made from natural or synthetic fibers using advanced technologies in fibers, nonwovens and absorbency.
Personal Care brands offer its consumers a trusted partner in caring for themselves and their families by delivering confidence, protection and discretion through a wide variety of innovative solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. Products in this segment are sold under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Thinx, Poise, Depend, Plenitud, Softex and other brand names.
Consumer Tissue offers a wide variety of innovative solutions and trusted brands that responsibly improve everyday living for families around the world. Products in this segment include facial and bathroom tissue, paper towels, napkins and related products, and are sold under the Kleenex, Scott, Cottonelle, Andrex, Viva, Scottex, Neve and other brand names.
K-C Professional partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive through a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers. The company's brands, including Kleenex, Scott, WypAll, Kimtech and KleenGuard are well known for quality and trusted to help people around the world work better.
|Adult Care||Baby & Child Care||Family Care||Feminine Care||K-C Professional|
|Depend||Huggies||Kleenex||U by Kotex||Kleenex|
|DryNites/All Pyjama Pants||Cottonelle||Kotex Anydays||Kimtech|
|Little Swimmers||Scottex||Kotex GoodFeel||KleenGuard|
Kimberly-Clark was founded in 1872 in Neenah, Wisconsin, by John A. Kimberly, Charles B. Clark, Havilah Babcock, and Frank C. Shattuck. The company's first product was a wood pulp-based sanitary napkin. Kimberly-Clark expanded its product line in the early 1900s to include facial tissues, toilet paper, and diapers.
In the 1950s, Kimberly-Clark introduced the Kleenex brand of facial tissues. Kleenex quickly became the world's leading brand of facial tissues. In the 1970s, Kimberly-Clark introduced the Huggies brand of disposable diapers. Huggies also quickly became the world's leading brand of disposable diapers.