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Sep 30, 2020
Kimberly-Clark Q3 2020 Earnings Report
Reported a 1% increase in net sales and a solid organic sales growth, while managing near-term operating priorities and increasing growth investments.
Key Takeaways
Kimberly-Clark reported a 1% increase in net sales to $4.7 billion, driven by a 3% organic sales growth. Adjusted earnings per share were $1.72, and the company is raising its full-year outlook, expecting adjusted earnings per share to grow 9 to 11 percent this year.
Net sales increased 1% to $4.7 billion, with organic sales growth of 3%.
Diluted net income per share was $1.38, while adjusted earnings per share were $1.72.
The company achieved $140 million in cost savings and returned approximately $560 million to shareholders through dividends and share repurchases.
Full-year outlook raised, now expecting adjusted earnings per share growth of 9 to 11 percent.
Forward Guidance
The company is targeting full-year 2020 organic net sales growth of 5 percent and adjusted earnings per share of $7.50 to $7.65.
Positive Outlook
- Net sales increase of 2 to 3 percent.
- Organic sales increase of 5 percent.
- Adjusted operating profit growth of 8 to 10 percent.
- Adjusted earnings per share of $7.50 to $7.65.
- No significant impact from potential supply chain disruptions as a result of COVID-19.
Challenges Ahead
- Foreign currency exchange rates unfavorable between 2 and 3 percent.
- The net impact of the acquisition of Softex Indonesia and exited businesses in conjunction with the 2018 Global Restructuring Program expected to increase sales slightly.
- 2018 Global Restructuring Program is expected to be completed in 2021, with total restructuring charges anticipated to be toward the high end of the range of $1,700 to $1,900 million pre-tax ($1,300 to $1,400 million after tax).
Historical Earnings Impact
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