Core Viewpoint - Kimberly-Clark (KMB) has indicated that tariffs will have a significant negative impact on the company's profits, amounting to hundreds of millions of dollars [1]. Company Summary - The company has expressed concerns regarding the financial implications of tariffs on its profitability [1].

Core Viewpoint - Kimberly-Clark's shares have increased by approximately 5.8% since the last earnings report, but this performance is below that of the S&P 500 [1] Group 1: Earnings Report and Market Reaction - The consensus estimate for Kimberly-Clark has decreased by 11.67% over the past month, indicating a downward trend in expectations [2] - The stock has received a Zacks Rank of 4 (Sell), suggesting expectations of below-average returns in the coming months [4] Group 2: VGM Scores - Kimberly-Clark has a Growth Score of B, but it is significantly lagging in Momentum with a score of F [3] - The stock has a Value Score of D, placing it in the bottom 40% for this investment strategy, leading to an overall aggregate VGM Score of D [3]

Core Points - Kimberly-Clark announced the recipients of its Bright Futures college scholarships, awarding 30 high school seniors from North America [1][2] - The Bright Futures program, now in its 33rd year, provides scholarships worth up to $20,000, or $5,000 per school year, for full-time students attending accredited colleges and universities [2] - Since its inception, the program has awarded nearly $50 million in scholarships to over 2,400 students [2] Company Commitment - The Bright Futures scholarship program reflects Kimberly-Clark's commitment to developing future leaders, supporting students who have shown exceptional dedication to their studies and communities [3] - The average GPA of this year's scholarship recipients is 3.98, with awardees attending prestigious institutions such as MIT and the University of Wisconsin [3] - Past recipients have pursued successful careers in various fields, including medicine, education, and engineering [3] Foundation Overview - The Kimberly-Clark Foundation, established in 1952, focuses on social impact investments that support essential care for women and girls [5] - The foundation aims to create lasting social change through its charitable initiatives [5] Company Profile - Kimberly-Clark operates in over 175 countries, providing essential products under trusted brands like Huggies and Kleenex [6] - The company emphasizes sustainable practices and has been recognized as one of the World's Most Ethical Companies for seven consecutive years [6] - Kimberly-Clark was also listed among Fortune's Most Innovative Companies in America in 2024 [6]

Group 1 - Kimberly-Clark Corporation will voluntarily transfer its U.S. stock exchange listing from the New York Stock Exchange to the Nasdaq Global Select Market, with trading on NYSE ceasing on May 29, 2025, and commencing on Nasdaq on May 30, 2025 [1] - Kimberly-Clark is a global leader in the consumer staples industry, with trusted brands that are essential for people in over 175 countries [2] - The company's portfolio includes well-known brands such as Huggies, Kleenex, Scott, and Kotex, which hold No. 1 or No. 2 market share positions in approximately 70 countries [2] Group 2 - Kimberly-Clark emphasizes sustainable practices that support a healthy planet and strong communities, ensuring long-term business viability [2] - The company has been recognized as one of the World's Most Ethical Companies for seven consecutive years and was listed among Fortune's Most Innovative Companies in America in 2024 [2]

Core Insights - Kimberly-Clark Corporation is navigating a challenging consumer backdrop while evolving its business strategy to focus on volume mix-led growth [3][5] - The company has undergone a reorganization to better position itself in the market and improve its perception beyond being a "pulp proxy" [3] Company Leadership - Mike Hsu has been with Kimberly-Clark since 2012 and has served as CEO since 2019, playing a crucial role in guiding the company through industry challenges [1] - Nelson Urdaneta, the CFO, joined the company in 2022 and brings extensive experience from the consumer packaged goods sector [1] Industry Context - The industry has faced significant volatility, prompting Kimberly-Clark to adapt its strategies to maintain growth and navigate ongoing challenges [3][5]

Summary of Kimberly-Clark (KMB) Conference Call - May 13, 2025 Company Overview - **Company**: Kimberly-Clark Corporation (KMB) - **Industry**: Consumer Packaged Goods (CPG) - **Key Management**: - Mike Hsu, Chairman and CEO - Nelson Urndetta, CFO - Chris Jakubik, Head of Investor Relations Core Points and Arguments 1. **Company Evolution**: Kimberly-Clark has evolved from being perceived as a "pulp proxy" to focusing on volume mix growth, aided by a reorganization in the previous year [2][4][6] 2. **Growth Strategy**: The company aims to shift from a growth-challenged state (1-2% organic growth) to a more robust growth trajectory (4% organic growth) through innovation and market expansion [7][11] 3. **Innovation Focus**: Emphasis on pioneering innovation and better marketing to enhance product storytelling and consumer engagement [15][16] 4. **Cost Management**: The company has set a goal to achieve over $3 billion in cost savings through improved efficiency and standardization across markets [17][36] 5. **Market Dynamics**: The consumer market remains challenging, with category growth decelerating to 1.5-2%, influenced by tariff impacts and changing consumer behaviors [47][66] 6. **Tariff Impact**: The company anticipates a $300 million impact from tariffs, primarily due to production choices made in response to cost efficiency [76][87] 7. **Product Mix Shift**: A significant shift from value-tier products to premium offerings, with 85% of the North American diaper business now in the premium category [65][66] 8. **Supply Chain Improvements**: Establishment of a global supply chain organization to enhance efficiency and lower costs [38][43] Additional Important Insights 1. **Consumer Behavior**: In developed markets, there is a bifurcation in consumer spending, with higher-income households continuing to spend while budget-constrained consumers seek value [55][58] 2. **Advertising Strategy**: The company has doubled its advertising spend since 2018 to better communicate product benefits, moving away from reliance on promotions [126][127] 3. **Innovation Pipeline**: The innovation pipeline is more back-half loaded for the year, with significant product launches expected in the latter half [118][123] 4. **Risk Management**: Transition to a proactive risk management approach, including programmatic hedging for costs related to resins, energy, and currencies [32][33] 5. **Long-term Goals**: The company aims to achieve gross margins of at least 40% and operating profit margins of 18-20% by the end of the decade [68][70] This summary encapsulates the key points discussed during the conference call, highlighting the strategic direction, challenges, and opportunities for Kimberly-Clark in the current market environment.

Core Insights - Kimberly-Clark Corporation has promoted Russ Torres to President and Chief Operating Officer, effective immediately [1][2] - Torres will oversee day-to-day operations, Global Supply Chain, R&D, Global Growth, and Digital Technology Solutions [2] - Kurt Laufer will serve as Interim President, North America while a search for a permanent successor is conducted [2] Company Leadership and Experience - Torres has been President of North America since October 2024, previously serving as Group President and President of K-C Professional [3] - He has over 25 years of experience in the consumer product goods industry, with leadership roles at Newell Brands, Bain & Company, and Mondelez International [3] Business Strategy and Growth - Under Torres' leadership, Kimberly-Clark's North America business achieved mid-single digit compound annual growth [4] - The company is focused on its "Powering Care" strategy to enhance operational execution and drive growth and profitability [4] - Torres expressed optimism about unlocking potential at Kimberly-Clark and continuing to build on the strength of its brands [4] Company Overview - Kimberly-Clark operates in over 175 countries, with brands like Huggies, Kleenex, and Scott holding top market positions in approximately 70 countries [5] - The company emphasizes sustainable practices and has been recognized as one of the World's Most Ethical Companies for seven consecutive years [5]

Core Points - Kimberly-Clark Corporation will establish an $800 million advanced manufacturing facility in Trumbull County, Ohio, creating 491 new high-quality jobs [1][4][11] - This facility will be Kimberly-Clark's first investment in Ohio and is part of a strategic expansion to enhance its operations in the American market [3][4] - The project received a 10-year Job Creation Tax Credit from the Ohio Tax Credit Authority, which was approved earlier this week [2] Company Overview - Kimberly-Clark is a leading manufacturer of personal care and hygiene products, with a portfolio that includes brands such as Huggies, Kleenex, and Scott, and operates in over 175 countries [6] - The new facility will span over one million square feet and is expected to serve approximately 117 million consumers in the Midwest and Northeast [4][6] Economic Impact - The investment is anticipated to have a long-term economic impact on the region, not only by creating direct jobs but also by attracting ancillary businesses and boosting local housing and economy [11][12] - The project is seen as a catalyst for regional revitalization and reflects Ohio's pro-business climate and commitment to workforce development [7][11] Collaboration and Support - The successful establishment of the facility is attributed to close collaboration among local, regional, and state partners, including JobsOhio and the Ohio Department of Development [8][10] - The site received $17.2 million from the All Ohio Future Fund to assist in site readiness and infrastructure development [5]

Financial Data and Key Metrics Changes - 2024 was a breakthrough year for Kimberly-Clark, with full-year results exceeding long-term growth algorithms, supported by consistent execution across the organization [4][18] - The company returned $2,600,000,000 to shareholders through dividends and share repurchases [4][18] Business Line Data and Key Metrics Changes - The organization was successfully restructured into three segments: North America, International Personal Care, and International Family Care and Professional [4][18] - Strong progress was made against three strategic priorities: accelerating pioneering innovation, optimizing margin structure, and wiring the organization for growth [4][18] Market Data and Key Metrics Changes - The company is focused on delivering strong end market execution, productivity, and cost management in an increasingly dynamic operating environment [5][19] Company Strategy and Development Direction - The "Powering Care" transformation strategy aims to provide better care for a better world and deliver balanced and sustainable growth for the long term [3][17] - The addition of Joe Romanelli to the Board is expected to leverage his global leadership experience and healthcare expertise [5][20] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's embrace of the innovation-led growth agenda and transformation, highlighting excitement about future opportunities [5][19] - The Board of Directors is committed to overseeing the transformation and enhancing shareholder value [5][19] Other Important Information - The meeting included the election of 13 directors, ratification of independent auditors, and approval of executive compensation, all of which were approved by stockholders [11][25] Q&A Session Summary Question: Were there any questions submitted during the meeting? - There were no questions submitted on the portal during the meeting [12][26]

Group 1 - The article provides an update on Kimberly-Clark (NYSE: KMB) following a previous upgrade to a hold rating, indicating that near-term weaknesses have been priced in [1] - The investment approach is fundamentally based, focusing on long-term durability and affordability rather than just low multiples [1] - The company is characterized by steady long-term growth, a lack of cyclicality, and a robust balance sheet, which are key factors in investment decisions [1] Group 2 - There is an acknowledgment of the risks involved in investing in successful companies, particularly the potential to overpay, highlighting the importance of valuation [1] - The article suggests that in certain situations, the potential for growth may outweigh immediate price concerns, indicating a broader perspective on investment opportunities [1]