K-C Announces First Quarter Results

Kimberly-Clark’s first quarter sales of $5.1 billion were 1% lower than the prior-year period, including negative impacts of approximately 5% from foreign currency translation and approximately 1% from the divestiture of the Tissue and K-C Professional business in Brazil in June 2023. Organic sales were up 6%, driven by a 4% increase in price, 1% favorable product mix and a 1% increase in volume. Price-led gains reflected necessary pricing actions to address higher local costs in hyperinflationary economies, mainly in Argentina. Volume and mix were positive across North America, Developing and Emerging (D&E) markets, as well as Developed Markets (represents Australia, South Korea and Western/Central Europe).

In North America, organic sales increased 3% versus last year, driven by 2% growth in Personal Care and 6% growth in Consumer Tissue, partially offset by a decline of 1% in K-C Professional.

In D&E markets, organic sales were up 15% reflecting both pricing gains as well as volume and mix gains. Organic sales for Developed Markets decreased 2%, driven by lower pricing that primarily reflected comparisons with temporary, energy surcharge-related price increases in Western Europe in the prior-year period.

Personal Care sales of $2.7 billion were in line with the year-ago period, while organic sales increased 10%, driven by pricing actions in hyperinflationary economies as well as volume and mix gains. Innovation, solid commercial execution and supply improvements contributed to volume growth, led by a 4% increase in D&E markets and a 1% increase in North America partially offset by 2% decline in Developed Markets.

K-C Professional sales of $823 million decreased 3% due to divestitures and business exits. Organic sales increased 2%, driven by price realization and mix benefits from strong demand for new washroom solutions. Lower volumes reflected ongoing rightsizing of the portfolio, primarily in North America.