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Kimberly-Clark 8-K Report, Financial Results (Apr 23, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 23, 2024
Period End
April 23, 2024
Security
KMB
In the record · 2016–202610-K1110-Q328-K111

KMB filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 111 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Sep ’18Sep ’18
  2. Change in control8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Deal closed8-K · Nov ’26Nov ’26

01—Abstract

Summary

Summary of the 8-K filed April 23, 2024. Cited figures are marked; the original filing is the authoritative source.

Kimberly-Clark Corporation reported first quarter 2024 results on April 23, 2024, as stated in Exhibit 99.1, a press release furnished under Item 2.02.

Net sales were $5.1 billiona ($5,149 million), down 1 percent from the prior year, including negative impacts of approximately 5 percent from foreign currency translation and approximately 1 percent from the divestiture of the Tissue and K-C Professional business in Brazil. Organic sales grew 6 percent, driven by a 4 percent increase in price, 1 percent favorable product mix and a 1 percent increase in volume. Gross margin rose 390 basis points to 37.1 percent, and diluted EPS increased 14 percent to $1.91 on a reported basis.

Adjusted EPS was $2.01b, up 20 percent, and excludes a $0.10 impact from costs related to the 2024 Transformation Initiative. The company raised its 2024 outlook. Organic net sales growth is now expected to be mid-single digits, versus the prior expectation of low-to-mid-single-digit growth.

Adjusted operating profit and adjusted EPS are now expected to grow at a low-teens percentage rate on a constant-currency basis. Reported operating profit and reported EPS are now expected to be negatively impacted by approximately 700 basis points from currency translation, compared with a prior assumption of 400 basis points. Cash provided by operations was $438 millionc year to date, down from $613 million, mainly reflecting timing differences in accounts receivable.

Total debt was $8.0 billiond as of March 31, 2024, consistent with December 31, 2023. The company returned $452 million to shareholders through dividends and share repurchases during the quarter.

02—Key points

Key Highlights

  1. Net sales of $5.1 billion (down 1 percent reported) with organic sales growth of 6 percent, led by a 4 percent price increase.
  2. Gross margin improved 390 basis points to 37.1 percent, driven by organic growth and gross productivity gains.
  3. Diluted EPS rose 14 percent to $1.91; adjusted EPS rose 20 percent to $2.01, excluding $0.10 of Transformation Initiative costs.
  4. 2024 outlook raised: organic net sales growth now mid-single digits; adjusted operating profit and adjusted EPS now expected to grow at low-teens percentage rates on a constant-currency basis.
  5. Currency headwind to reported operating profit and EPS now expected at approximately 700 basis points, versus 400 basis points previously assumed.
  6. Operating cash flow was $438 million year to date versus $613 million last year, mainly due to timing of accounts receivable; total debt was $8.0 billion.
  7. Segment operating profit: Personal Care $545 million (up 12 percent), Consumer Tissue $290 million (up 21 percent), K-C Professional $188 million (up 18 percent).

03—Questions

Frequently Asked Questions

  1. What drove the change in Kimberly-Clark's first quarter 2024 net sales?

    Net sales fell 1 percent to $5.1 billion. Foreign currency translation reduced sales by approximately 5 percent and the Brazil tissue and K-C Professional divestiture by approximately 1 percent. Organic sales grew 6 percent, driven by a 4 percent price increase, 1 percent favorable mix and 1 percent volume growth.

  2. Why did the company raise its 2024 outlook?

    The filing says the company updated its outlook based on first quarter results. It now expects mid-single-digit organic net sales growth, up from low-to-mid-single digits, and low-teens constant-currency growth in adjusted operating profit and adjusted EPS, up from high-single-digit to low-double-digit and high-single-digit, respectively.

  3. How did the company's earnings compare on reported and adjusted bases?

    Diluted EPS was $1.91, up 14 percent. Adjusted EPS was $2.01, up 20 percent. The $0.10 difference reflects costs related to the 2024 Transformation Initiative, which the company excludes from non-GAAP results. Currency translation was a $0.21 year-on-year headwind to adjusted EPS.

  4. What is the company's current cash flow and debt position?

    Cash provided by operations was $438 million year to date, compared with $613 million last year, mainly reflecting timing differences in accounts receivable. Capital spending was $194 million, and total debt was $8.0 billion as of March 31, 2024, consistent with year-end 2023.

04—Continue

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