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Jun 30, 2024
Kimberly-Clark Q2 2024 Earnings Report
Kimberly-Clark's Q2 2024 results reflected positive volume and mix gains, driven by innovative new products and effective cost management, leading to strong earnings growth.
Key Takeaways
Kimberly-Clark reported Q2 2024 net sales of $5.0 billion, a 2% decrease compared to the prior year, but organic sales grew by 4%. Adjusted EPS increased by 19% to $1.96, driven by organic growth and productivity gains. The company raised its 2024 earnings outlook, expecting mid-to-high teens percentage rate growth in adjusted operating profit and adjusted earnings per share on a constant-currency basis.
Net sales reached $5.0 billion with a 4% organic sales growth.
Adjusted earnings per share increased by 19% to $1.96, including a $0.12 headwind from currency translation.
Gross margin was 36.0%, with adjusted gross margin at 36.9%, up 290 basis points year-over-year.
The company increased its 2024 earnings outlook, anticipating mid-to-high teens percentage rate growth in adjusted operating profit.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Kimberly-Clark updated its 2024 outlook based on first-half results, expecting mid-single digit organic net sales growth but negative impacts from currency translation and divestitures on reported net sales. Adjusted operating profit and earnings per share are now expected to grow at a mid-to-high teens percentage rate on a constant-currency basis.
Positive Outlook
- Organic Net Sales are still expected to grow at mid-single digit rate
- Adjusted Operating Profit is now expected to grow at a mid-to-high teens percentage rate on a constant-currency basis.
- Adjusted Earnings Per Share is now expected to grow at a mid-to-high teens percentage rate on a constant-currency basis
Challenges Ahead
- Reported Net Sales are still expected to be negatively impacted by 400 basis points of currency translation
- Reported Net Sales are still expected to be negatively impacted by 120 basis points from divestitures.
- Reported Operating Profit and Reported Earnings Per Share are still expected to be negatively impacted by approximately 700 basis points from currency translation.
- This outlook reflects assumptions subject to change given the macro environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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