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Dec 31, 2024
Kimberly-Clark Q4 2024 Earnings Report
Kimberly-Clark delivered solid results in the first year of transformation, establishing a foundation for its Powering Care strategy and exceeding its long-term growth algorithm.
Key Takeaways
Kimberly-Clark reported Q4 2024 results with net sales of $4.9 billion, a decrease of 0.8%, but organic sales grew by 2.3%. Adjusted EPS was $1.50, down 0.7% year-over-year. The company's Powering Care strategy drove volume gains and improved product mix, generating significant efficiencies.
Net sales were $4.9 billion, down 0.8 percent, with organic sales growth of 2.3 percent.
Adjusted gross margin was 35.4 percent, up 50 basis points versus the prior year.
Adjusted operating profit was $684 million, up 2.1 percent versus the prior year.
Adjusted earnings per share were $1.50, down 0.7 percent versus prior year.
Kimberly-Clark
Kimberly-Clark
Forward Guidance
Kimberly-Clark expects 2025 Organic Sales Growth to outpace the weighted average growth in the categories and countries it competes, which are currently growing at approximately two percent.
Positive Outlook
- 2025 Organic Sales Growth to outpace category growth.
- Adjusted Operating Profit is expected to grow at a high single-digit rate on a constant-currency basis.
- Adjusted Earnings Per share are expected to grow at a mid-to-high single-digit rate on a constant-currency basis.
- Continued organic growth.
- Operating momentum as transformation progresses.
Challenges Ahead
- Reported Net Sales are forecast to reflect a negative impact of approximately 300 basis points from currency translation.
- Reported Net Sales are forecast to reflect a negative 240 basis point impact from divestiture of PPE business and exit of private label diaper businesses in the US.
- Adjusted Operating Profit is expected to include a negative 320 basis point impact from divestiture of PPE business and exit of the company's private label diaper businesses in the US.
- Operating Profit growth is also expected to be negatively impacted by approximately 300 basis points from currency translation.
- Earnings Per Share are also currently expected to be negatively impacted by approximately 350-400 basis points from currency translation, including the impact on income from equity interests.