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KMB NYSE· Kimberly-Clark Corporation
Earnings report Q4 2023

Kimberly-Clark Corporation Reports Modest Revenue Growth in Latest Quarter

Segments of Revenue

In the latest quarter, Kimberly-Clark Corporation reported net sales of $20.43 billion, representing a 1% increase compared to the same period last year. The company's North America segment contributed $11.13 billion in net sales, reflecting a 4% growth. However, the Outside North America segment experienced a slight decline, with net sales totaling $9.55 billion, down 3% from the previous year. Intergeographic sales decreased by 12%, amounting to a negative impact of $253 million.

Strengths

Kimberly-Clark Corporation demonstrated strength in its North America segment, which saw a solid 4% increase in net sales. This growth can be attributed to factors such as higher net selling prices and cost savings. Additionally, the company's organic sales increased by 3%, driven by a 6% change in net selling prices. These positive results indicate effective pricing strategies and cost management by the company.

Challenges

The Outside North America segment of Kimberly-Clark Corporation faced challenges in the latest quarter, experiencing a 3% decline in net sales. This decline can be attributed to lower volumes, higher input costs, and higher marketing research and general expenses. Additionally, changes in foreign currency exchange rates negatively impacted sales by approximately 1%. These challenges highlight the need for the company to address cost management and market conditions in regions outside of North America.

Noteworthy

Kimberly-Clark Corporation's operating profit increased by 21% to $976 million in the latest quarter. This improvement was driven by higher net selling prices and cost savings. However, it was partially offset by higher other manufacturing costs, higher input costs, lower volumes, and higher marketing research and general expenses. The company also repurchased 1.8 million shares of its common stock at a cost of $225 million during the year, indicating confidence in its financial position.

Summary

Kimberly-Clark Corporation reported modest revenue growth in the latest quarter, with net sales increasing by 1% to $20.43 billion. The company demonstrated strength in its North America segment, driven by higher net selling prices and cost savings. However, the Outside North America segment faced challenges due to lower volumes, higher costs, and unfavorable currency exchange rates. Overall, Kimberly-Clark Corporation's financial performance indicates the need for continued focus on cost management and market conditions in different regions.

Source documents

Form 10-K  filed on Feb 08, 2024
126 pages scanned

Reference data

Company financials Q4 revenue 4.97B
Analyst estimates Q4 EPS missed by -5.32%
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