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Dec 31, 2022
Kimberly-Clark Q4 2022 Earnings Report
Kimberly-Clark's Q4 2022 performance remained consistent with the previous year, marked by organic sales growth and increased profitability in specific segments.
Key Takeaways
Kimberly-Clark reported Q4 2022 net sales of $5.0 billion, consistent with the year-ago period, and a 5% increase in organic sales. Diluted net income per share was $1.50, up from $1.06 in 2021, with adjusted earnings per share at $1.54, an 18% increase. The company's operating profit rose to $712 million from $521 million, driven by higher net selling prices and cost savings.
Net sales remained consistent at $5.0 billion, with a 5% increase in organic sales driven by a 10% rise in net selling prices and a 1% increase in product mix, offset by a 7% volume decline.
Diluted net income per share increased to $1.50, up from $1.06 in the previous year.
Adjusted earnings per share rose by 18% to $1.54, compared to $1.30 in 2021.
Operating profit increased to $712 million, compared to $521 million in the previous year, benefiting from higher net selling prices and cost savings.
Forward Guidance
Kimberly-Clark expects net sales to increase by 0 to 2 percent in 2023, including organic sales growth of 2 to 4 percent. Diluted earnings per share are projected to increase by 2 to 6 percent, driven by an operating profit increase in the mid-to-high single digits, both versus adjusted results in 2022.
Positive Outlook
- Net sales increase 0 to 2 percent.
- Organic sales growth of 2 to 4 percent.
- Operating profit up mid-to-high single digits versus adjusted operating profit in 2022.
- Cost savings associated with FORCE program in-line with the prior year.
- Earnings per share increase 2 to 6 percent versus adjusted earnings per share in 2022.
Challenges Ahead
- Foreign currency exchange rates unfavorable approximately 2 percent.
- Input costs expected to increase $200 to $300 million.
- Foreign currency exchange rates expected to reduce operating profit by low-double digits or approximately $300 to $400 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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