Kimberly-Clark Corporation (K-C) has announced it is “accelerating its transformation” while sustaining the momentum of its brands and businesses.
Its latest results report that the company’s “durable operating model” has resulted in sustained, innovation-driven volume-plus gains, as net sales increase by 0.6% to of $4.2bn.
Gross margin was 38.3% compared to 35.0 percent in the prior year, while second quarter operating profit was $633m compared to $592m year-on-year.
For the first half of the year, net sales of $8.4bn increased 1.6%m and gross margin was 37.6% compared to 36.1% year-on-year.
Year-to-date organic sales increased 0.5%, as volume growth of 0.8%, led by gains in consumer tissue and professional categories was partially offset by price-related investments to drive consumer trial of new products.
Chairman and Chief Executive Mike Hsu said: “Our achievements in the first half of the year show that Kimberly-Clark’s durable operating model is enabling us to accelerate our transformation while sustaining the momentum of our brands and businesses.
“Our team is executing with agility and addressing discrete headwinds that will moderate our growth and earnings potential in 2026.
“We continue to invest in our innovation-led growth agenda and superior brand propositions that win with consumers across the value spectrum.
“Combined with industry-leading gross productivity savings, we’re ensuring that our base business is well positioned to drive sustainable growth in 2027 and beyond.”
The company launched Arbex – its strategic joint venture with Suzano – in July.
Hsu added: “We entered the next phase of development of our next-generation, sustainable materials innovation platform by announcing the construction of an alternative natural fibres pilot plant in the Southwest of the United States.
“Our pending acquisition of Kenvue remains on track to close by the end of this year.
“In sum, our vision for a new kind of health and wellness company, reimagined care for billions of people around the world, and lasting value for shareholders is becoming clearer by the day.”
The company also noted that its second quarter results were “negatively impacted by a discrete disruption stemming from false allegations regarding the quality of certain diaper brands in the China market.”
It said: “Independent testing conducted by a government-certified third party confirmed the quality and safety of the company’s products, refuting the false allegations.
“While the company is effectively navigating the situation, the impact from the spread of false claims across social media significantly impacted the company’s diaper sales in China in the second quarter and is expected to further impact sales and profits in the near term.”
*Unless otherwise noted, reported results in are based on continuing operations and exclude the International Family Care and Professional (“IFP”) business, which is reported as discontinued operations.
