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Sep 30, 2023
Kimberly-Clark Q3 2023 Earnings Report
Kimberly-Clark's Q3 2023 earnings were announced, showcasing organic growth across all segments and continued margin progress.
Key Takeaways
Kimberly-Clark reported a strong third quarter in 2023, with net sales up 2% to $5.1 billion and organic sales growth of 5%. The company's gross margin improved significantly, and adjusted earnings per share increased by 24%. Based on year-to-date performance, Kimberly-Clark raised its full-year outlook.
Net sales increased by 2% to $5.1 billion, with organic sales up 5%.
Gross margin improved by 530 basis points to 35.8% due to favorable net revenue realization and productivity.
Diluted earnings per share were $1.73, and adjusted earnings per share increased by 24% to $1.74.
The company raised its 2023 outlook for organic sales growth to 4% - 5% and adjusted earnings per share growth to 15% - 17%.
Forward Guidance
Kimberly-Clark updated its full year expectations for 2023. The company projects adjusted EPS growth of 15%-17% and organic sales growth of 4%-5%.
Positive Outlook
- Organic sales growth is expected to be between 4% and 5%.
- FORCE savings are projected to be $300-$350 million.
- Adjusted operating margin is expected to be up 170 bps.
- Net interest expense is expected to be down high single digit.
- Effective tax rate is expected to be 23%-24%.
Challenges Ahead
- FX impact on net sales is expected to be ~(3)%.
- Acquisition/(divestiture) impact on net sales is expected to be ~(1)%.
- Input cost impact on operating profit is expected to be ~$(50) million.
- Other manufacturing cost is expected to be ~$(250) million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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