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Jun 30, 2023
Kimberly-Clark Q2 2023 Earnings Report
Kimberly-Clark reported strong organic sales growth and gross margin expansion, raised full-year outlook.
Key Takeaways
Kimberly-Clark's second quarter 2023 results showed a 1% increase in net sales to $5.1 billion, with organic sales up 5%. The company's gross margin was 33.7%, a 350 basis point increase, and adjusted EPS was $1.65. Due to the strong first-half performance, Kimberly-Clark raised its full-year outlook for organic sales growth to 3-5% and adjusted EPS growth to 10-14%.
Net sales increased by 1% to $5.1 billion, with organic sales up 5%.
Gross margin improved by 350 basis points to 33.7%, with adjusted gross margin up 380 basis points to 34.0%.
Diluted earnings per share were $0.30, while adjusted earnings per share were $1.65.
The company raised its 2023 outlook for organic sales growth to 3-5% and adjusted earnings per share growth to 10-14%.
Forward Guidance
The company updated its full year expectations for 2023.
Positive Outlook
- Organic sales growth: 3% - 5%
- FX impact on net sales: (2)%
- Net sales: 0% - 2%
- Income from equity companies: up vs. prior year
- Share repurchases: $100 - $150 million
Challenges Ahead
- FX impact on operating profit: $(300) - $(400) million
- Effective tax rate: 23% - 25%
- This outlook reflects assumptions subject to change given the macro environment
- This outlook does not include the impact of impairment charges
- This outlook does not include the net benefit from sale of Brazil tissue and professional business and pension settlements.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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