Kimberly-Clark (K-C) has reported a “breakthrough year” in its Q4 and FY 2024 results, as its “innovation-led” business model enables reinvestment in its brands and new capabilities.
Net sales for the fourth quarter were down 0.8% to $4.9 bn, and an organic sales growth of 2.3% was recorded.
Gross margin was 34%, while operating profit for the quarter was $548m while adjusted operating profit was $684 million up 2.1 percent versus the prior year with higher adjusted gross margin enabling higher investments.
Diluted earnings per share were $1.34; adjusted earnings per share were $1.50, down 0.7 percent versus prior year driven primarily by lower equity income offset by higher adjusted operating profit.
For the full year 2024 results, net sales of $20.1bn were 1.8% lower than the prior year.
The company said this was due to negative impacts from foreign currency translation and divestitures.
Organic sales grew 3.2%, driven by an approximately 1.9% increase in price. Operating profit for the year was $3.2bn.
Chairman and Chief Executive Mike Hsu said: “2024 was a breakthrough year for Kimberly-Clark with the launch of our transformative, multi-year Powering Care strategy and successfully rewiring our organisation into three powerhouse segments with world-class functional support.
“Our full-year results exceeded our new long-term growth algorithm – supported by consistent execution across the organisation – and we established a strong foundation to accelerate our strategy in 2025 and beyond.”
Hsu added that the company delivered organic top-line growth and this, coupled with improved productivity, has “driven strong adjusted profit growth and fuelled investments to advance our competitive advantage.”
Bids continue for potential sale of company’s $4bn tissue business
According to Bloomberg News, speculation about the potential sale of K-C’s $4bn international tissue business continues.
Potential buyers include Brazil’s Suzano – which in November 2022 announced the $175m acquisition of K-C tissue business in Brazil – Indonesia’s Asia, Pulp & Paper (APP) and Singapore’s Royal Golden Eagle (RGE).
Deliberations are currently ongoing and may not lead to a transaction.
When contacted by TWM, K-C, Suzano, APP and a spokesperson for RGE declined to comment at this time.
