Kimberly-Clark Corporation Q3 2024 Results

NEW YORK – Kimberly-Clark Corporation (NYSE:KMB) reported its third quarter 2024 results on Thursday, surpassing earnings estimates but falling short on revenue expectations. The company also adjusted its full-year organic sales growth outlook.

The consumer products giant posted adjusted earnings per share of $1.83, exceeding the analyst consensus of $1.70. However, revenue for the quarter amounted to $5 billion, which was below the projected $5.06 billion.

Net sales decreased 4% compared to the previous year, affected by a 3% negative foreign currency translation and the divestiture of the K-C Professional Personal Protective Equipment business, which contributed about 1% to the decline. Organic sales grew by 1%, primarily due to a 1% increase in pricing.

“Our third quarter results reflect strong execution across the business as we transform our organization,” said Kimberly-Clark Chairman and CEO Mike Hsu. He emphasized the company's organic top-and-bottom-line growth, supported by market share gains and improved productivity.

Adjusted gross margin rose by 90 basis points year-over-year to 36.7%, a result of strong gross productivity improvements.

For the full year 2024, Kimberly-Clark now anticipates organic net sales growth of 3-4%, lowered from the previous expectation of mid-single digit growth. The company cited discrete headwinds from changes in retail inventory levels as responsible for the revised forecast.

The company maintained its guidance for adjusted operating profit and adjusted earnings per share to grow at a mid-to-high teens percentage rate on a constant-currency basis.

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