Kimberly-Clark(US:KMB)2025-10-30 15:28Financial Performance - Net sales for the three months ended September 30, 2025, were $4.15 billion, a slight increase of 0.1% compared to $4.14 billion in 2024, while net sales for the nine months ended September 30, 2025, declined by 2.6% to $12.37 billion from $12.70 billion in 2024[95]. - Gross profit for the three months ended September 30, 2025, was $1.49 billion, down 4.5% from $1.56 billion in 2024, and for the nine months, it decreased by 8.0% to $4.46 billion from $4.84 billion[95]. - Operating profit for the three months ended September 30, 2025, was $621 million, a decrease of 39.5% from $1.03 billion in 2024, while for the nine months, it fell by 19.1% to $1.84 billion from $2.28 billion[95]. - The company reported a pre-tax gain of $566 million from the sale of its former PPE business, contributing to a net income attributable to Kimberly Clark Corporation of $446 million for the three months ended September 30, 2025, down 50.8% from $907 million in 2024[91][95]. - Income from continuing operations for the three and nine months ended September 30, 2025 was $344 million and $1.3 billion, respectively, down from $823 million and $1.8 billion in the prior year[108]. - Diluted earnings per share for the three and nine months ended September 30, 2025 were $1.01 and $3.73, respectively, representing a decrease of 58.3% and 30.5% compared to the prior year[112]. Sales and Growth - Organic sales growth for the three months ended September 30, 2025, was 2.5%, driven by volume gains of 2.4%, while net sales for the nine months showed a 1.6% organic increase[99][100]. - Net sales for North America for the three months ended September 30, 2025 were $2.7 billion, a decrease of 0.8% due to the exit of the private label diaper business[119]. - Net sales for International Personal Care for the three months ended September 30, 2025 were $1.4 billion, an increase of 1.9% primarily due to a 2.1% increase in organic sales[121]. - Organic Sales Growth for the three months ended September 30, 2025, was 2.7%, while for the nine months it was 2.1%[142]. Cost and Expenses - The company anticipates incremental costs of approximately $100 million in 2025 due to new tariffs, primarily affecting the North America segment[86]. - The gross margin for the three months ended September 30, 2025, was 36.0%, a decrease of 170 basis points compared to the prior year, primarily due to unfavorable pricing and cost inflation[101][102]. - Cash provided by operations was $1.8 billion during the nine months ended September 30, 2025, down from $2.4 billion in the prior year[124]. - Cash used for investing was $650 million during the nine months ended September 30, 2025, compared to cash provided by investing of $94 million in the prior year[125]. - Total debt from continuing operations was $7.3 billion as of September 30, 2025, slightly down from $7.4 billion at the end of 2024[128]. - The company anticipates full year capital spending to be approximately $1.0 to $1.2 billion, including incremental spending from the 2024 Transformation Initiative[125]. Tax and Adjustments - The effective tax rate for the three and nine months ended September 30, 2025 was 45.4% and 30.6%, respectively, compared to 19.4% and 19.1% in the prior year[110]. - Adjusted operating profit for the three months ended September 30, 2025, was $683 million, a slight increase from $682 million in 2024, while for the nine months, it decreased to $2.10 billion from $2.17 billion[96][103]. - Adjusted Gross Profit for the three months ended September 30, 2025, was $1,527 million, compared to $1,595 million in 2024[144]. - Adjusted Earnings per Share for the three months ended September 30, 2025, was $1.45, compared to $1.56 in 2024[144]. - The effective tax rate as reported for the nine months ended September 30, 2025, was 30.6%[146]. Strategic 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, of which cash costs are expected to be around 60%[90]. - The 2024 Transformation Initiative aims to enhance agility and focus, improving growth trajectory and profitability[143]. - The company recognized a deferred tax liability related to the IFP Transaction for certain permanently reinvested earnings expected to be repatriated[143]. - The sale of the PPE business in 2024 resulted in a recognized gain, contributing positively to financial results[143]. - Impairment charges related to intangible assets were recognized in 2024, impacting overall profitability[143]. - The company anticipates challenges from external factors such as currency fluctuations and geopolitical risks affecting future performance[134].