Kimberly-Clark Corporation (KMB)
Description
Kimberly-Clark Corporation is a global consumer products company producing and marketing personal care, consumer tissue and professional products under leading brands such as Huggies, Kleenex, Scott and Kotex.
Historical Reports
Financial Information
- Report Date
- 2025-04-29
- Report Period
- Q1 2025
- Debt
- $7.247 billion
- Debt History
- Debt decreased by 2.6% compared to December 2024
- Debt Trend
- Decreasing
Profit Information
- Profit
- $567 million
- Profit History
- Profit decreased by 12.3% compared to Q1 2024
- Profit Trend
- Decreasing
Detailed Report
Kimberly-Clark Q1 2025 Financial Report
Report Date: 2025-04-29
Period Covered: Quarter ended March 31, 2025 (Q1 2025)
Executive Summary
- Net Sales: $4.840 billion (–6.0% YoY)
- Gross Profit: $1.733 billion (–9.3% YoY), Gross Margin 35.8% (–130 bps)
- Operating Profit: $769 million (–9.9% YoY)
- Net Income Attributable: $567 million (–12.3% YoY)
- Diluted EPS: $1.70 (–11.0% YoY)
- Total Debt: $7.247 billion (–2.6% vs. Dec 2024)
Income Statement Analysis
- Revenue decline driven by:
- Unfavorable currency translation (~–4.5%)
- Divestiture of private-label diaper business
- Strategic pricing investments
- Gross Margin compression due to:
- 110 bp one-time charge from the 2024 Transformation Initiative
- Net cost inflation partially offset by productivity savings
- Operating Profit impacted by a $75 million pre-tax Transformation Initiative charge (adjusted operating profit of $844 million)
- Effective Tax Rate of 23.8% (adjusted 21.4%), resulting in net income of $567 million
Balance Sheet Highlights
- Total debt of $7.247 billion (current: $0.766 billion; long-term: $6.481 billion)
- Cash & equivalents: $0.563 billion
- Inventory: $1.909 billion
- Working capital movement drove cash flow from operations down to $327 million
Cash Flow Summary
- Operating cash flow: $327 million
- Capital expenditures: $204 million
- Free cash flow: ~$123 million
- Financing uses: $683 million (debt repayment, $405 million dividends, share repurchases)
Pros and Cons
Pros:
- Leading global brands with strong market positions
- Ongoing cost-savings and Transformation Initiative to enhance margins
- Diversified geographic footprint
Cons:
- Margin pressure from inflation and currency headwinds
- Mature markets limit growth; competitive pricing environment
- Geopolitical risks (tariffs, Russia curtailment)
Outlook
Management expects to stabilize top-line trends, deliver mid-single-digit EPS growth for 2025 and complete the Transformation Initiative by end of 2026.
Statistics Breakdown
By Segment (Q1 2025):
- North America: Net Sales $2.666 B (55% of total), Operating Profit $676 M
- International Personal Care: Net Sales $1.383 B (29%), Operating Profit $194 M
- International Family Care & Professional: Net Sales $0.791 B (16%), Operating Profit $106 M
By Product Category (Q1 2025):
- Baby & Child Care: $1.637 B
- Family Care: $1.569 B
- Professional Products: $0.689 B
- Adult Care: $0.475 B
- Feminine Care: $0.443 B
Company Direction Insights
Kimberly-Clark is navigating temporary headwinds from currency translation, divestitures and cost inflation. The ongoing 2024 Transformation Initiative is reshaping its cost structure and is on track to complete by 2026, driving future margin expansion. While near-term organic sales remain under pressure in mature categories, strong global brands and productivity programs underpin the long-term growth trajectory. Key challenges include managing raw-material inflation, geopolitical risks (tariffs, Russia operations) and maintaining pricing discipline in competitive markets. Overall financial health remains solid, with a moderate debt profile and ample liquidity to fund strategic investments and shareholder returns.