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Mar 31, 2021
Kimberly-Clark Q1 2021 Earnings Report
Kimberly-Clark's first quarter 2021 results were announced, reflecting a challenging environment impacted by COVID-19 related stock up in the year-ago period, consumer tissue category softness, and commodity inflation.
Key Takeaways
Kimberly-Clark reported a 5% decrease in net sales to $4.7 billion, including an 8% organic sales decline. Diluted net income per share was $1.72, and adjusted earnings per share were $1.80. The company is updating its full-year 2021 organic sales growth target to 0-1% and adjusted earnings per share to $7.30-$7.55.
First quarter net sales decreased 5 percent to $4.7 billion, with an organic sales decline of 8 percent.
Diluted net income per share was $1.72, compared to $1.92 in the year-ago period.
Adjusted earnings per share were $1.80, compared to $2.13 in the year-ago period.
The company is now targeting full-year 2021 organic sales growth of 0 to 1 percent and adjusted earnings per share of $7.30 to $7.55.
Kimberly-Clark
Kimberly-Clark
Forward Guidance
The company updated the following key planning and guidance assumptions for full-year 2021: Net sales increase 3 to 5 percent. Organic sales increase 0 to 1 percent. Adjusted earnings per share of $7.30 to $7.55
Positive Outlook
- Net sales increase 3 to 5 percent
- Foreign currency exchange rates favorable between 1 and 2 percent
- Softex Indonesia acquisition expected to increase sales 2 percent
- Benefits from higher net selling prices
- Cost savings of $460 to $520 million
Challenges Ahead
- Volumes are expected to be lower
- Key cost inputs expected to increase $900 to $1,050 million
- Exited businesses in conjunction with the 2018 Global Restructuring Program anticipated to reduce sales slightly
- Adjusted operating profit expected to decline 3 to 6 percent year-on-year
- Previous outlook $7.75 to $8.00