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Mar 31, 2022
Kimberly-Clark Q1 2022 Earnings Report
Kimberly-Clark reported strong first quarter results, driven by double-digit organic sales growth and effective cost management in a volatile environment.
Key Takeaways
Kimberly-Clark's first quarter 2022 results showed a 7% increase in net sales to $5.1 billion, including 10% organic sales growth. Diluted net income per share was $1.55, while adjusted earnings per share were $1.35, a decrease of 25% compared to the previous year. The company updated its full-year 2022 organic sales growth target to 4-6% and expects adjusted earnings per share of $5.60 to $6.00.
Net sales increased by 7% to $5.1 billion, with organic sales growing by 10%.
Diluted net income per share was $1.55, while adjusted earnings per share were $1.35.
The company is now targeting full-year 2022 organic sales growth of 4 to 6 percent.
Adjusted earnings per share are expected to be $5.60 to $6.00 for the full year.
Forward Guidance
The company updated key planning and guidance assumptions for full-year 2022. The outlook reflects a reasonable set of assumptions subject to change given the high level of volatility in the macro environment.
Positive Outlook
- Net sales increase 2 to 4 percent (prior assumption 1 to 2 percent).
- Organic sales increase 4 to 6 percent (prior 3 to 4 percent).
- Net selling prices are expected to be higher.
- Thinx acquisition expected to increase sales slightly.
- Higher organic sales expected to benefit operating profit.
Challenges Ahead
- Foreign currency exchange rates unfavorable approximately 2 percent.
- Adjusted operating profit down low to mid-single digits percent.
- Operating profit outlook has been adjusted for the net benefit from the acquisition of controlling interest in Thinx.
- Key cost inputs expected to increase $1.1 to $1.3 billion (previous estimate $750 to $900 million).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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