Loading...
•
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.
Kimberly-Clark
Kimberly-Clark
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).
- The company continues to target to achieve those savings by the end of 2021, although it is possible the full realization could occur in 2022 because of the uncertainties related to COVID-19.
- COVID-19 makes it more challenging for management to estimate future business performance, particularly over the near term.