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

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 23, 2024
Period End
July 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 July 23, 2024. Cited figures are marked; the original filing is the authoritative source.

Kimberly-Clark Corporation reported second quarter 2024 results on July 23, 2024, in Exhibit 99.1, a press release for the period ended June 30, 2024.

Net sales were $5.0 billiona, down 2 percent versus 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 4 percent, driven by a 2 percent increase in price and a 2 percent increase in volume and mix. Diluted earnings per share were $1.61 on a reported basis, including a negative $0.35 impact from transformation initiative costs.

Adjusted diluted EPS was $1.96b, up 19 percent versus the prior year. Second quarter operating profit was $655 million, including $190 million of 2024 Transformation Initiative costs. Adjusted operating profit increased 16 percent despite an unfavorable 7 percentage point impact from currency translation.

Year-to-date cash provided by operations was $1.5 billionc, and total debt was $8.0 billion as of June 30, 2024, consistent with December 31, 2023 levels. The company raised its 2024 outlook.

Adjusted operating profit and adjusted EPS are now expected to grow at a mid-to-high teens percentage rate on a constant-currency basis, up from prior expectations of low-teens growth. Organic net sales growth expectations of mid-single digits are unchanged, and reported operating profit and EPS are still expected to be negatively impacted by approximately 700 basis points from currency translation.

02—Key points

Key Highlights

  1. Q2 2024 net sales of $5.0 billion, down 2 percent, with organic sales up 4 percent
  2. Adjusted gross margin of 36.9 percent, up 290 basis points versus the prior year, versus reported gross margin of 36.0 percent
  3. Diluted EPS of $1.61 reported; adjusted EPS of $1.96, up 19 percent, including a $0.12 year-on-year currency headwind
  4. Raised 2024 outlook: adjusted operating profit and adjusted EPS now expected to grow at mid-to-high teens percentage rates on a constant-currency basis, up from low-teens
  5. Personal Care organic sales up 8 percent; Consumer Tissue organic sales down 2 percent, driven by North American retailer inventory reductions
  6. Q2 2024 costs of $190 million related to the 2024 Transformation Initiative, which is reorganizing into three new business segments
  7. Year-to-date cash provided by operations of $1.5 billion; total debt of $8.0 billion at June 30, 2024

03—Questions

Frequently Asked Questions

  1. What did Kimberly-Clark report for the second quarter of 2024?

    Net sales were $5.0 billion, down 2 percent versus the prior year, with organic sales up 4 percent. Diluted EPS was $1.61 on a reported basis and $1.96 on an adjusted basis, up 19 percent. Operating profit was $655 million, and adjusted operating profit rose 16 percent.

  2. How did Kimberly-Clark change its 2024 outlook?

    The company now expects adjusted operating profit and adjusted EPS to grow at a mid-to-high teens percentage rate on a constant-currency basis. Previous expectations were low-teens growth. Organic net sales growth is still expected to be at a mid-single digit rate, and reported results are still expected to be negatively impacted by approximately 700 basis points from currency translation.

  3. What drove the growth in organic sales?

    Organic sales grew 4 percent, driven by a 2 percent increase in price, primarily from pricing actions in hyperinflationary economies such as Argentina, and a 2 percent increase through volume and mix. Developing and Emerging markets organic sales rose 12 percent.

  4. What are the costs related to the 2024 Transformation Initiative?

    The company recorded $190 million of second quarter operating profit costs related to the 2024 Transformation Initiative, equal to a negative $0.35 impact on diluted EPS. The initiative aims to improve growth focus and reduce the structural cost base by reorganizing into three new business segments.

04—Continue

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