01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Kimberly-Clark Corporation's 2024 Annual Report reports net sales of $20.1 billiona, down 1.8% from 2023, driven primarily by unfavorable currency impacts and divestitures and business exits.
Organic sales increased 3.2%, led by a 1.9% increase in net price, primarily in hyperinflationary economies, along with volume and mix gains. Operating profit rose 36.9% to $3.2 billionb and net income attributable to Kimberly-Clark increased 44.3% to $2.5 billion, with diluted EPS of $7.55 versus $5.21. The filing notes that results benefited from higher gross margins and a $565 million gain on the sale of the PPE business, partially offset by 2024 Transformation Initiative charges of $456 million.
Adjusted EPS, a non-GAAP measure, was $7.30c versus $6.57, an increase of 11.1%. The company launched its 2024 Transformation Initiative in March 2024 to streamline its operating structure and reorganized into three reportable segments: North America, International Personal Care, and International Family Care and Professional. Total pre-tax costs are expected to be approximately $1.5 billion, with $3.0 billion in expected gross productivity savings, and workforce reductions of 4% to 5%.
The program is expected to be completed by the end of 2026. Cash provided by operations was $3.2 billiond, capital spending was $721 million, and the company returned $2.6 billion to shareholders through dividends and share repurchases. Total debt declined to $7.4 billion from $8.0 billion.
The filing highlights ongoing risks, including input cost inflation, currency and hyperinflationary exposures, a shift toward private-label products, and dependence on key retailers, with Walmart representing approximately 14% of 2024 net sales. The company expects net input costs to be inflationary in 2025 and projects capital spending of $1.0 to $1.2 billion for 2025.
02—Key points
Key Highlights
- Net sales were $20.1 billion, down 1.8%, while organic sales grew 3.2% on a 1.9% increase in net price and volume and mix gains.
- Operating profit rose 36.9% to $3.2 billion, and diluted EPS was $7.55 versus $5.21, aided by a $565 million gain on the PPE business sale.
- Adjusted EPS, a non-GAAP measure, was $7.30, up 11.1% from $6.57, with adjusted operating profit of $3.2 billion versus $3.0 billion in 2023.
- The 2024 Transformation Initiative carries expected total pre-tax costs of about $1.5 billion and targets $3.0 billion in gross productivity savings, with completion expected by the end of 2026.
- Cash provided by operations was $3.2 billion, and share repurchases and dividends totaled $2.6 billion in 2024.
- Total debt decreased to $7.4 billion from $8.0 billion at year-end 2023.
- Walmart Inc. accounted for approximately 14% of 2024 consolidated net sales, primarily in the North America segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Kimberly-Clark kept $0.15.
- Revenue$16.80B100.0%
- Cost of revenue−$10.52B62.6%
- Gross profit$6.29B37.4%
- Operating costs−$3.59B21.4%
- Operating income$2.70B16.1%
- Interest, other & tax−$155.0M0.9%
- Net income$2.54B15.1%
Where FY2024 revenue went
$16.80B- Cost of revenue: $10.52B, 63% of revenue
- Other operating costs: $3.26B, 19% of revenue
- Net income: $2.54B, 15% of revenue
- R&D: $328.0M, 2.0% of revenue
- Interest, other & tax: $155.0M, 0.9% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $16.80B$17.15B | −2.0% |
| Cost of Revenue | $10.52B$10.88B | −3.3% |
| Gross Profit | $6.29B$6.27B | +0.3% |
| R&D Expenses | $328.00M$303.00M | +8.3% |
| Operating Income | $2.70B$1.93B | +40.0% |
| Interest Expense | $270.00M$293.00M | −7.8% |
| Net Income | $2.54B$1.76B | +44.3% |
| EPS (Basic) | $7.58$5.22 | +45.2% |
| EPS (Diluted) | $7.55$5.21 | +44.9% |
| Shares Outstanding (Basic) | 335.60M337.80M | −0.7% |
| Shares Outstanding (Diluted) | 337.00M338.80M | −0.5% |
05—Questions
Frequently Asked Questions
Why did net income rise 44.3% when net sales fell 1.8%?
The filing attributes the increase mainly to higher gross margins, the $565 million pre-tax gain on the sale of the PPE business, and the absence of the prior year's $658 million intangible asset impairment charge, partially offset by $456 million of 2024 Transformation Initiative charges.
What is the 2024 Transformation Initiative and what does it cost?
It is a program announced in March 2024 to create a more agile operating structure and reduce the structural cost base. Total costs are anticipated to be about $1.5 billion pre-tax, roughly half in cash, primarily for workforce reductions of 4% to 5%, and total 2024 charges were $457 million pre-tax.
How did the company perform on a non-GAAP basis?
Adjusted EPS was $7.30, up 11.1% from $6.57, and adjusted operating profit was $3.237 billion versus $2.958 billion, after excluding items such as transformation charges, the PPE sale gain, and intangible asset impairments.
What are the main segment results?
North America net sales were $11.0 billion, flat, with operating profit of $2.5 billion up 1.1%. International Personal Care net sales were $5.7 billion, down 3.1%, with operating profit of $787 million up 24.5%. International Family Care and Professional net sales were $3.3 billion, down 5.9%, with operating profit of $377 million up 31.4%.
What is the company's capital allocation outlook?
In 2024 it paid $1.6 billion in dividends and repurchased 7.2 million shares for $1.0 billion. It expects 2025 capital spending of approximately $1.0 to $1.2 billion, including incremental transformation spending, and it has raised its dividend for 52 consecutive years.
06—Continue