KIMBERLY CLARK CORP SEC 10-Q Report

Kimberly-Clark Corporation, a global leader in personal care and consumer tissue products, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the impact of strategic initiatives and market conditions on its business.

Financial Highlights

• Net Sales: $4,163 million, a decrease of 1.6% compared to the same period last year, primarily due to divestitures, business exits, and unfavorable currency impacts, partially offset by organic sales growth.
• Gross Profit: $1,456 million, a decrease of 8.7% from the prior year, with a gross margin of 35.0%, impacted by unfavorable pricing net of cost inflation and charges related to the 2024 Transformation Initiative.
• Operating Profit: $592 million, an increase of 9.8% from the prior year, despite charges related to the 2024 Transformation Initiative, reflecting cost management and productivity savings.
• Net Income Attributable to Kimberly-Clark Corporation: $509 million, a decrease of 6.4% from the prior year, influenced by higher effective tax rates and lower income from equity companies.
• Diluted Earnings per Share: $1.53, a decrease of 4.1% from the prior year, primarily due to lower adjusted operating profit and lower income from equity companies, despite benefits from lower dilutive shares outstanding.

Business Highlights

• Revenue Segments: The North America segment experienced a 1.9% decrease in net sales for the three months ended June 30, 2025, primarily due to the sale of the PPE business and the exit of the private label diaper business in the US. Organic sales increased by 4.3% due to volume gains.
• Revenue Segments: The International Personal Care segment saw a 0.4% increase in net sales for the three months ended June 30, 2025, driven by a 3.3% increase in organic sales, despite unfavorable currency impacts.
• Geographical Performance: North America faced challenges with divestitures and business exits impacting sales, while the International Personal Care segment benefited from volume and mix gains, although currency impacts were unfavorable.
• Sales Units: Volume gains in North America were significant, with a 5.2% increase for the three months ended June 30, 2025, contributing to the organic sales growth.
• Sales Units: The International Personal Care segment also saw volume gains of 4.8% for the three months ended June 30, 2025, supporting the segment's organic sales growth.
• Future Outlook: The company anticipates completing the 2024 Transformation Initiative by the end of 2026, aiming for $3.0 billion in gross productivity savings and $200 million in selling, general, and administrative expenses.
• Future Outlook: The IFP Transaction is expected to close in mid-2026, with the company retaining a 49% equity interest in the joint venture, which is anticipated to impact future operations and financial results.

SEC Filing: KIMBERLY CLARK CORP [ KMB ] - 10-Q - Aug. 01, 2025