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Sep 30, 2021
Kimberly-Clark Q3 2021 Earnings Report
Reported a 7 percent increase in net sales and a decrease in adjusted earnings per share compared to the year-ago period.
Key Takeaways
Kimberly-Clark Corporation reported a 7% increase in net sales to $5.0 billion, driven by organic sales growth, but experienced a decrease in adjusted earnings per share to $1.62 due to significant inflation and supply chain disruptions.
Third quarter net sales increased 7 percent, with organic sales up 4 percent.
Diluted net income per share was $1.39, compared to $1.38 in the previous year.
Adjusted earnings per share were $1.62, down from $1.72 in the prior year.
The company is now targeting full-year 2021 organic sales decline of 1 to 2 percent and adjusted earnings per share of $6.05 to $6.25.
Forward Guidance
Kimberly-Clark updated its full-year 2021 outlook, anticipating a net sales increase of 1 to 2 percent and an adjusted earnings per share of $6.05 to $6.25.
Positive Outlook
- Net sales increase 1 to 2 percent.
- Combined benefit of foreign currency exchange rates and the Softex Indonesia acquisition net of exited businesses in conjunction with the 2018 Global Restructuring Program expected to increase sales 3 percent.
- Cost savings of $520 to $540 million, including $390 to $400 million from the FORCE program and $130 to $140 million from the 2018 Global Restructuring Program.
- Capital spending of $1,000 to $1,100 million.
- Share repurchases of approximately $400 million.
Challenges Ahead
- Organic sales decline 1 to 2 percent.
- Adjusted operating profit expected to decline 20 to 22 percent year-on-year.
- Key cost inputs expected to increase $1,400 to $1,500 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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