Kimberly-Clark boosted by strong organic sales growth

By Simon Pitman

- Last updated on GMT

Kimberly-Clark boosted by strong organic sales growth

Related tags Organic sales growth Revenue Investment

The Kimberly-Clark results are in, and they look good. Currency headwinds hit sales but overall the results beat expectations.

During the third quarter net sales fell by 7% to reach $4.7bn, underscored by a 12% hit from foreign currency exchange – an issue that has been impacting the performance of all US-based multinationals during the course of the past year.

Underlining the impact of currency exchange, the company noted that organic sales during the period increased by 5%, which included a 10% increase in sales from emerging and developing markets, as well as a 7% gain in personal care sales from North America.

Results surpass analysts' expectations

While net income fell by 8%, from $562m to $517m, both the sales and net profit figures surpassed Wall Street expectations, leading to a small surge in the company’s share price.

"We delivered another quarter of good financial results. Organic sales grew mid-single digits, with benefits from targeted growth initiatives, innovations and brand investments. We achieved significant cost savings and improved adjusted gross margin,”​ said company CEO Thomas J. Falk.

“We are executing well in a challenging environment and are raising the low end of our previous guidance ranges for full-year organic sales growth and adjusted earnings per share."

Personal care performs well

In the mainstay personal care business segment sales for the quarter fell by 5%, with currency headwinds impacting the results by 13%, with sales from developing and emerging markets being impacted by a hefty 25%.

However, this figure was measured alongside a strong underlying performance, with volumes increasing by more than 7% which led to the strong organic sales growth for the division.

Looking ahead to the full-year results, the company is predicting that organic sales growth will be in the 4 to 5% area, which is an improvement on earlier forecasts of a 3 to 5% growth.

Related topics Business & Financial

Related news