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Jun 30, 2020
Kimberly-Clark Q2 2020 Earnings Report
Reported an increase in net sales and organic sales growth compared to the year-ago period.
Key Takeaways
Kimberly-Clark Corporation reported second quarter 2020 results with net sales of $4.6 billion, a slight increase compared to the year-ago period. Organic sales grew by 4 percent. Diluted net income per share was $1.99, and adjusted earnings per share were $2.20, up 32 percent compared to the previous year. The company is restoring financial guidance for full-year 2020 and restarting its share repurchase program.
Second quarter net sales increased slightly to $4.6 billion, with organic sales growth of 4 percent.
Diluted net income per share was $1.99, compared to $1.40 in the previous year.
Adjusted earnings per share were $2.20, a 32 percent increase compared to $1.67 in 2019.
Cash provided by operations reached an all-time record of $1,579 million.
Forward Guidance
The company is restoring financial guidance for full-year 2020. Net sales are expected to increase 1 to 2 percent year-on-year, including organic sales growth of 4 to 5 percent. Diluted net income per share is anticipated to be $6.35 to $6.90. Adjusted earnings per share are expected to be $7.40 to $7.60.
Positive Outlook
- Net sales increase of 1 to 2 percent.
- Organic sales increase of 4 to 5 percent.
- Adjusted operating profit growth of 6 to 9 percent.
- Cost savings of $510 to $560 million.
- Key cost inputs expected to decline $150 to $250 million.
Challenges Ahead
- Foreign currency exchange rates unfavorable by 3 percent.
- Exited businesses expected to reduce sales slightly.
- Higher other manufacturing costs, including expenses related to COVID-19.
- Increased investments in advertising and commercial capabilities.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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