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Jun 30, 2021
Kimberly-Clark Q2 2021 Earnings Report
Kimberly-Clark's Q2 2021 results were announced, showing a mixed performance with sales increase but earnings decline due to higher input costs and consumer destocking.
Key Takeaways
Kimberly-Clark reported a 2% increase in net sales to $4.7 billion, driven by foreign currency and the Softex Indonesia acquisition, but organic sales declined by 3%. Diluted net income per share was $1.19, and adjusted earnings per share were $1.47, both down from the previous year. The company is facing significantly higher input costs and reduced consumer tissue volumes.
Net sales increased by 2% to $4.7 billion, but organic sales decreased by 3%.
Diluted net income per share was $1.19, a decrease from $1.99 in the previous year.
Adjusted earnings per share were $1.47, down from $2.20 in the previous year.
The company is now targeting a full-year 2021 organic sales decline of 0 to 2% and adjusted earnings per share of $6.65 to $6.90.
Forward Guidance
Kimberly-Clark updated its full-year 2021 outlook, anticipating net sales to increase by 1 to 4% and organic sales to decline by 0 to 2%. Adjusted earnings per share are expected to be $6.65 to $6.90.
Positive Outlook
- Net sales increase 1 to 4 percent.
- Foreign currency exchange rates favorable between 1 and 2 percent.
- Softex Indonesia acquisition expected to increase sales 2 percent.
- Cost savings of $520 to $560 million.
- Capital spending of $1,100 to $1,200 million.
Challenges Ahead
- Organic sales decline 0 to 2 percent.
- Adjusted operating profit expected to decline 11 to 14 percent year-on-year.
- Key cost inputs expected to increase $1,200 to $1,300 million.
- Net income from equity companies similar, to down somewhat, year-on-year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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