Kimberly-Clark(KMB) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended March 31, 2025, were $4.84 billion, a decline of 6.0$5.15 billion in 2024, primarily due to unfavorable currency impacts and divestitures[72]. - Gross profit decreased to $1.73 billion, down 9.3$769 million, a decrease of 9.8%, with adjusted operating profit at $844 million, down 6.0$898 million in 2024[72][77]. - Net income attributable to Kimberly-Clark Corporation was $567 million, a decrease of 12.4$1.70, down 11.0% from $1.91[72][82]. - Organic sales decreased by 1.6$1.93, compared to $2.01 in the prior year[111]. Segment Performance - North America segment net sales were$2.67 billion, a decrease of 3.9%, with operating profit increasing by 1.3% to $676 million[87]. - Net sales for International Personal Care decreased by 8.9$1.4 billion, primarily due to unfavorable currency impacts of 6.0% and lower organic sales[89]. - Operating profit for International Personal Care fell by 19.8% to 194 million, mainly due to unfavorable pricing net of cost inflation and currency impacts[90]. - Net sales for International Family Care & Professional decreased by 7.7% to 791 million, driven by divestitures, unfavorable currency impacts, and lower organic sales[91]. - Operating profit for International Family Care & Professional decreased by 3.6% to $106 million, influenced by unfavorable pricing and currency impacts[92]. Cost and Savings Initiatives - The 2024 Transformation Initiative is expected to yield total pre-tax savings of$3.0 billion, with total costs anticipated to be approximately $1.5 billion pre-tax[69]. - Incremental costs due to new U.S. tariffs are estimated at approximately$300 million in 2025, primarily affecting the North America segment[66]. Cash Flow and Capital Expenditures - Cash provided by operations was $327 million, down from$438 million in the prior year, due to lower operating profit and unfavorable changes in working capital[93]. - Cash used for investing was $119 million, a decrease from$181 million in the prior year, with capital spending at $204 million compared to$194 million previously[94]. - The company anticipates full-year capital spending to be approximately $1.0 to$1.2 billion, including spending from the 2024 Transformation Initiative[94]. Taxation - The effective tax rate for the first quarter of 2025 was 23.8%, compared to 23.6% in 2024, with an adjusted effective tax rate of 21.4%[81]. - The effective tax rate as adjusted for the three months ended March 31, 2025, was 21.4%, compared to 23.6% in the prior year[112]. Debt Management - Total debt as of March 31, 2025, was $7.2 billion, down from$7.4 billion as of December 31, 2024[97]. Operational Realignment - The company has realigned its operations into three segments: North America, International Personal Care, and International Family Care and Professional, to enhance reporting and management efficiency[67].