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Mar 31, 2023
Kimberly-Clark Q1 2023 Earnings Report
Kimberly-Clark's Q1 2023 results showed net sales growth and significant margin improvements driven by the Revenue Growth Management program, leading to an increased EPS outlook for 2023.
Key Takeaways
Kimberly-Clark reported a strong start to 2023, with a 2% increase in net sales to $5.2 billion and a 5% increase in organic sales. The company's gross margin improved by 340 basis points, and diluted earnings per share increased by 8% to $1.67. The company raised its 2023 outlook for adjusted earnings per share growth.
Net sales increased by 2% to $5.2 billion, with organic sales up by 5%.
Gross margin improved by 340 basis points due to favorable net revenue realization offsetting inflation.
Diluted earnings per share rose by 8% to $1.67, and adjusted earnings per share increased by 24%.
The company raised its 2023 outlook for adjusted earnings per share growth to 6-10%.
Forward Guidance
The company updated its full year expectations for 2023. Organic sales are expected to grow between 2% and 4%. EPS is expected to grow between 6% and 10%.
Positive Outlook
- Organic sales growth between 2% and 4%.
- Operating profit up low double digits.
- Input cost impact on operating profit between $(100) and $(200) million.
- Effective tax rate between 23% and 25%.
- Income from equity companies up vs. prior year.
Challenges Ahead
- FX impact on net sales (2)%.
- Net sales growth between 0% and 2%.
- FX impact on operating profit ($ million) $(300) - $(400).
- Share repurchases ($ million) $100 - $150.
- The outlook reflects assumptions subject to change given the high level of volatility in the macro environment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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