Kimberly-Clark (K-C) has said it continues to target full-year 2022 organic sales growth of 5 – 7%, as its Consumer Tissue business reported sales up 2% to $1.6bn in its third quarter results.
Net sales for the period increased 1% to $5.1bn compared to the year-ago period.
Organic sales increased 5% as net selling prices rose 9%, while product mix increased sales 1% while volumes declined 5%.
In North America, organic sales decreased 2% in consumer products and increased 5% in K-C Professional.
Outside North America, organic sales rose 11% in both developing and emerging and developed markets.
Third quarter operating profit was $655m in 2022 and $657m in 2021.
Results were impacted by $360m of higher input costs, and K-C said that “lower volumes, higher marketing, research and general expense as well as unfavourable foreign currency effects reduced operating profit in the quarter”.
Mike Hsu, Chairman and Chief Executive, said: “Our third quarter results reflect strong execution by our teams around the world in the face of a challenging macro environment.
“We delivered organic sales growth across all our segments and continued to provide our consumers with value-inspired innovation.
“We continue to execute our plan to restore margins over time and are seeing progress with sequential margin improvement this quarter.
“As we navigate persistent input cost inflation, we’re focused on driving our growth strategy, serving consumers, customers and communities while living our purpose of Better Care for a Better World.”
Consumer Tissue sales of $1.6bn increased 2%
Net selling prices for the segment increased sales 9% while volumes declined approximately 3%, while third quarter operating profit of $218m decreased 2%.
Changes in foreign currency exchange rates reduced sales 4%.
Sales in North America increased 5%, and while net selling prices rose 7%, volumes declined 2 percent.
Higher net selling prices were achieved across all sub-segments while volume decline was primarily in bathroom tissue.
In the Personal Care segment, third quarter sales of $2.6bn decreased 1%.
Third quarter operating profit of $423m decreased 15% and was impacted by input cost inflation, lower volumes and associated fixed cost.
The company said results benefited from higher net selling prices and cost savings.