Kimberly-Clark Corporation (K-C) has reported first quarter 2025 results driven by “resilient consumer demand, the introduction of pioneering innovative products, and leveraging sustained productivity momentum.”
In the first quarter, the company reported net sales of $4.8bn, down 6.0%, which it said was driven primarily by impacts of currency and divestitures and business exits, with an organic sales decline of 1.6% when compared with the year previously.
First quarter operating profit was $769m compared to $853m a year earlier.
Organic sales decreased 1.6% driven by a 1.5% decrease in price while volume and mix were in line with a year ago.
Reported gross margin was 35.8%; adjusted gross margin was 36.9%, down 20 basis points compared with a year earlier.
Mike Hsu, K-C Chairman and Chief Executive, said: “Despite the evolving external landscape, our first quarter was consistent with our full-year plan.
“At the same time, the current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year.
“However, we remain confident in our ability to offset these costs over time and unlock our long-term potential.”
Hsu added the company’s “strong productivity momentum” is fuelling investments to advance its competitive advantage and driving profitability.
“Our innovation across the good-better-best value spectrum is winning with consumers and enabling us to gain share,” he said.
In North America, the company reported net sales of $2.7bn, a decrease of 3.9% in the quarter, driven by a combination of the PPE divestiture and the exit of the company’s private label diaper business in the US.
Operating profit of $676m increased 1.3% driven by strong productivity savings.
In its International Personal Care division, it reported net sales of $1.4bn, a decrease of 8.9%, while organic sales decreased 2.8%. Operating profit of $194m decreased 19.8%.
In the company’s International Family Care & Professional division, it recorded sales of $791m, a decrease of 7.7% which K-C said was “primarily due to divestitures and business exits and unfavourable currency impacts.”
Operating profit of $106m decreased 3.6%.
K-C added that its 2025 Organic Sales Growth is expected to outpace the weighted average growth in the categories and countries it competes, which are currently growing in the range of 1.5 – 2%, compared to approximately 2% at the start of the year.
REUTERS – RGE, APP, Suzano: Bids continue for potential sale of $4bn tissue business
Reuters has reported that Southeast Asia’s Royal Golden Eagle (RGE), Indonesia’s Asia Pulp & Paper Co (APP) and Brazil’s Suzano are “the final bidders” to acquire K-C’s international tissue business unit.
Valued at around $4bn, the three companies are said to be submitting binding bids by mid-May.
K-C, RGE, APP and Suzano declined to comment when contacted by TWM.
Reports of a potential sale have been ongoing since February 2025.
