Financial Reports & Markets
Kimberly-Clark performs well in second quarter of the year
July 26, 2022 By P&PC Staff/Kimberly-Clark
Kimberly-Clark released its results for the second quarter of 2022.
Here are the highlights for the quarter:
- Second quarter 2022 net sales of $5.1 billion increased seven percent compared to the year-ago period, including organic sales growth of nine percent.
- Diluted net income per share for the second quarter was $1.29 in 2022 and $1.19 in 2021.
- Second quarter adjusted earnings per share were $1.34 in 2022, down nine percent compared to $1.47 in 2021. Adjusted earnings per share exclude certain items described later in this news release.
- Diluted net income per share for 2022 is expected to be $5.67 to $6.10.
- The company is now targeting full-year 2022 organic sales growth of five to seven percent compared to prior outlook of four to six percent and maintains adjusted earnings per share range of $5.60 to $6.00.
“I’m pleased to close the first half of the year with another quarter of excellent execution by our teams who delivered strong organic sales growth, with increases in all our segments. Our growth strategy is working,” said Mike Hsu, chairman and CEO, Kimberly-Clark. “Our results also reflect ongoing market volatility and significant input cost inflation. We continue to be thoughtful with our response to inflation, focusing on providing value to our consumers while leveraging price and cost discipline to mitigate macro headwinds for margin improvement over time.”
Hsu added, “As we manage our business prudently in the near-term, we’re committed to investing in our people, brands and capabilities to ensure we continue to be well positioned to deliver balanced and sustainable growth over the long-term.”
Consumer Tissue Segment
Second quarter sales of $1.5 billion increased eight percent. Net selling prices increased sales seven percent, volumes rose three percent and product mix improved sales one point. Changes in foreign currency exchange rates reduced sales by three percent. Second quarter operating profit of $178 million decreased nine percent. The comparison was impacted by input cost inflation and higher marketing, research and general spending. Results benefited from organic sales growth, lower other manufacturing costs and cost savings.
Sales in North America increased 14 percent. Volumes grew seven percent, net selling prices improved six percent, and product mix increased sales one point. The volume growth reflects comparison to the COVID-related consumer and retailer inventory destocking in the year-ago period.
Sales in D&E markets increased four percent. Net selling prices rose nine percent and product mix improved three percent, while volumes were down seven percent. Changes in foreign currency exchange rates decreased sales one point.
Sales in developed markets outside North America were even with year-ago. Net selling prices rose approximately nine percent and volumes grew two percent. Changes in foreign currency exchange rates decreased sales nine percent and exited businesses related to the 2018 Global Restructuring program reduced sales one point.
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