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Kimberly-Clark 8-K Report, Financial Results (Oct 22, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 22, 2024
Period End
October 22, 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 October 22, 2024. Cited figures are marked; the original filing is the authoritative source.

Kimberly-Clark Corporation reported third quarter 2024 results on October 22, 2024, furnished under Item 2.02 with a press release as Exhibit 99.1.

Net sales were $4.95 billiona, down 4 percent from the prior year, including negative impacts of approximately 3 percent from foreign currency translation and approximately 1 percent from the divestiture of the K-C Professional PPE business. Organic sales grew 1 percent, driven by a 1 percent increase in price, with volume and mix in line with the prior year. Reported diluted EPS was $2.69, including a positive $1.34 impact from the PPE sale, a negative $0.31 impact from Transformation Initiative costs, and a negative $0.17 impact from impairment of intangible assets.

Adjusted diluted EPS was $1.83b, up 5 percent. For the first nine months, net sales were $15.13 billion, down 2 percent, while organic sales grew 4 percent. Year-to-date reported diluted EPS was $6.21 versus $3.70 a year earlier, and adjusted EPS was $5.80 versus $5.06.

Cash provided by operations was $2.42 billionc, and total debt was $7.5 billion at September 30, 2024, down from $8.0 billion at December 31, 2023. The company returned $2.0 billion to shareholders through dividends and repurchases. The company updated its 2024 outlook: organic net sales are now expected to grow 3% to 4%, versus a mid-single digit rate previously, reflecting discrete headwinds from retail inventory changes.

Adjusted operating profit and adjusted EPS are still expected to grow at a mid-to-high teens percentage rate on a constant-currency basis. Reported operating profit and EPS are now expected to be negatively impacted by approximately 650 basis points from currency translation, versus a previous expectation of 700 basis points.

02—Key points

Key Highlights

  1. Q3 2024 net sales of $4.95 billion, down 4 percent; organic sales up 1 percent, driven by a 1 percent price increase.
  2. Reported diluted EPS of $2.69; adjusted diluted EPS of $1.83, up 5 percent, including a $0.07 currency headwind.
  3. Q3 reported operating profit of $1.15 billion included $565 million of gains from the sale of the PPE business.
  4. Year-to-date adjusted EPS of $5.80 versus $5.06 in the prior year; reported diluted EPS of $6.21 versus $3.70.
  5. 2024 organic net sales growth outlook narrowed to 3%-4%, versus a mid-single digit rate previously, due to retail inventory changes.
  6. Reported operating profit and EPS now expected to be hit by about 650 basis points of currency translation, improved from 700 basis points.
  7. Total debt reduced to $7.5 billion at September 30, 2024 from $8.0 billion at December 31, 2023.

03—Questions

Frequently Asked Questions

  1. Why did reported net sales decline in the third quarter despite organic sales growth?

    Net sales fell 4 percent, including negative impacts of approximately 3 percent from foreign currency translation and approximately 1 percent from the divestiture of the K-C Professional PPE business. Organic sales still increased 1 percent, driven by price.

  2. What drove the difference between reported and adjusted EPS in Q3 2024?

    Reported diluted EPS of $2.69 included a positive $1.34 impact from the PPE sale, a negative $0.31 impact from Transformation Initiative costs, and a negative $0.17 impact from impairment of intangible assets. Adjusted EPS was $1.83.

  3. How did the company change its 2024 outlook?

    Organic net sales growth is now expected to be 3%-4%, versus a mid-single digit rate previously, reflecting discrete headwinds from changes in retail inventory levels. Adjusted operating profit and adjusted EPS growth expectations of mid-to-high teens on a constant-currency basis are unchanged. The currency impact on reported operating profit and EPS is now expected to be about 650 basis points, versus 700 basis points previously.

  4. How is the company's balance sheet and cash generation trending?

    Year-to-date cash provided by operations was $2.4 billion versus $2.3 billion last year, and capital spending was $512 million versus $549 million. Total debt fell to $7.5 billion from $8.0 billion at year-end 2023, and the company returned $2.0 billion to shareholders through dividends and repurchases.

04—Continue

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