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

Financial Performance - Net sales for Q1 2025 were $4.8 billion, a decrease of 6.0% compared to the prior year, impacted by approximately 2.4% from foreign currency translation and 2.0% from divestitures and business exits[4][6] - Operating profit for Q1 2025 was $769 million, down from $853 million in the prior year, reflecting charges related to the 2024 Transformation Initiative[5][6] - Net income attributable to Kimberly-Clark Corporation was $567 million, a decline of 12.4% from $647 million in 2024[32] - Cash provided by operations was $327 million, down from $438 million in the same period last year[36] - Income Before Income Taxes for Q1 2025 was reported at $694 million, compared to $781 million in Q1 2024, reflecting a decrease of approximately 11.1%[46] Earnings and Margins - Adjusted gross margin was 36.9%, down 20 basis points from the prior year, while reported gross margin was 35.8%[5][6] - Diluted earnings per share (EPS) were $1.70, down from $1.91 in the prior year, with adjusted EPS decreasing 4.0% to $1.93[9][6] - Diluted earnings per share decreased to $1.70, down 11.0% from $1.91 in the prior year[32] - Adjusted operating profit for the three months ended March 31, 2025, was $844 million, compared to $898 million in 2024[45] Sales Performance - North America net sales decreased 3.9% to $2.7 billion, with organic sales declining 0.6% primarily due to unfavorable price impacts[12] - International Personal Care (IPC) net sales were $1.4 billion, down 8.9%, with organic sales decreasing 2.8% driven by price investments[14] - Organic sales growth for the consolidated segment was reported at -1.6% for the three months ended March 31, 2025[43] - Net sales for the three months ended March 31, 2025, were $4,840 million, a decrease of 6.0% compared to $5,149 million in 2024[32] Future Outlook - The company expects 2025 organic sales growth to outpace the market growth of 1.5% to 2%[19] - Adjusted operating profit for 2025 is now expected to be flat to positive on a constant-currency basis, revised from previous expectations of high single-digit growth[20] - Adjusted free cash flow is now expected to be approximately $2 billion in 2025, down from a previous expectation of more than $2 billion[23] Balance Sheet - Total debt as of March 31, 2025, was $7.2 billion, a decrease from $7.4 billion as of December 31, 2024[18] - Total current assets decreased to $5,281 million from $5,580 million as of December 31, 2024[34] - Total liabilities decreased to $16,305 million from $16,546 million at the end of 2024[34] Taxation - The Adjusted Effective Tax Rate for Q1 2025 was 21.4%, while the reported rate for Q1 2024 was 23.6%[46] - The effective tax rate as reported for Q1 2025 was 23.8%, slightly higher than the 23.6% reported for Q1 2024[46]