Kimberly-Clark (K-C) has reported net sales of $5.1bn in its latest results, which it said were driven by its “powerhouse pipeline of innovation”.
First quarter sales of $5.1bn were 1% lower than the prior-year period, including negative impacts of 5% from foreign currency translation and approximately 1% from the divestiture of the Tissue and K-C Professional business in Brazil in June 2023.
First quarter operating profit was $853m, compared to $787m last year, while organic sales were up 6% driven by a 4% increase in price, 1% favourable product mix and a 1% increase in volume.
In North America, organic sales increased 3% compared to 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.
Mike Hsu, Chairman and Chief Executive, said: “We delivered an encouraging set of first quarter results as we embark on this next chapter of growth for Kimberly-Clark.
“Our powerhouse pipeline of innovation drove sequentially stronger gains from volume-plus-mix.
“We continued our strong productivity momentum through our efforts to optimize our margin structure, and we are making good progress focusing our enterprise as we advance the implementation of our new operating model.
“We’re excited about our opportunities to capitalise on this momentum on.”
In its Consumer Tissue segment, sales of $1.6bn for the quarter decreased 2% due to divestitures and business exits while organic sales were in line with the year ago period. Organic growth of 6% in North America was primarily offset by expected lower pricing in Western Europe due to lapping of energy surcharges.
First-quarter operating profit of $290m increased 21%.
In Personal Care, sales of $2.7bn were in line with the year-ago period, while first-quarter operating profit of $545m increased 12%.
In its K-C Professional division, sales of $823m decreased 3% due to divestitures and business exits.
First-quarter operating profit of $188m increased 18%.
