Kimberly-Clark(US:KMB)2023-10-24 14:03Financial Performance - Net sales for Q3 2023 were $5.1 billion, a 2% increase compared to the same period in 2022, with organic sales growth of 5%[73]. - Operating profit for Q3 2023 was $774 million, up 18% from $655 million in Q3 2022[73]. - Net income attributable to Kimberly-Clark Corporation increased by 26% to $587 million in Q3 2023, compared to $467 million in Q3 2022[74]. - Diluted earnings per share rose to $1.73 in Q3 2023, a 25% increase from $1.38 in Q3 2022[74]. - For the nine months ended September 30, 2023, net sales were $15.5 billion, an increase of 2% compared to the previous year, with organic sales up 5% driven by net selling price increases of approximately 8%[81][86]. - Operating profit for the nine months was $1,674 million in 2023, down from $1,969 million in 2022, while adjusted operating profit increased to $2,288 million from $1,905 million[88]. - Diluted net income per share for the nine months was $3.70 in 2023, compared to $4.22 in 2022, with adjusted earnings per share rising to $5.06 from $4.09[88]. Sales Performance - North America net sales increased by 6% to $2.8 billion in Q3 2023, while sales outside North America decreased by 4% to $2.3 billion[74]. - In the third quarter, net sales reached $5.1 billion, a 2% increase, with organic sales up 5% despite a 1% decline in volume[81]. - North America net sales increased by 7%, with Personal Care up 9%, Consumer Tissue up 4%, and K-C Professional up 7%, all driven by organic sales growth[82]. - The exit of the Brazil tissue and K-C Professional business negatively impacted sales by 1% in the third quarter[81]. - Exited business decreased sales by 3% in the third quarter, impacting overall net sales[95]. Cost and Profitability - Operating profit for the third quarter was $774 million in 2023, compared to $655 million in 2022, benefiting from higher net selling prices and $90 million in FORCE cost savings[83]. - The company achieved $275 million in FORCE cost savings year-to-date, contributing to improved profitability despite higher marketing and input costs[88]. - Operating profit for the third quarter increased by 22% to $267 million, benefiting from higher net selling prices and lower input costs, despite higher other manufacturing costs and marketing expenses[96]. - The company experienced a 41% increase in operating profit for K-C Professional to $168 million, driven by higher net selling prices and lower input costs, despite lower volumes[101]. Tax and Financial Charges - The effective tax rate for Q3 2023 was 22.5%[75]. - The effective tax rate for the third quarter was 22.5% in 2023, slightly up from 22.4% in 2022[84]. - The company recognized charges related to the impairment of intangible assets in Q2 2023, impacting overall financial performance[73]. Investments and Acquisitions - The company completed the sale of its Neve tissue brand in Brazil for $212 million, recognizing a pre-tax gain of $74 million[67]. - Kimberly-Clark acquired an additional 20% ownership of Thinx, increasing its stake to 70%, for a total consideration of $48 million[66]. Operational Changes - The company has curtailed operations in Russia, which represented approximately 1-3% of net global sales, due to increased costs and supply chain complexities[68]. Cash Flow and Debt - For the nine months ended September 30, 2023, cash provided by operations was $2.327 billion, up from $1.742 billion in the prior year, driven by increased operating profit and improvements in working capital[102]. - Capital spending for the first nine months of 2023 was $549 million, with an anticipated full-year capital spending of approximately $800 million[103]. - The company repurchased 740 thousand shares of common stock at a total cost of $97 million during the first nine months of 2023, targeting full-year repurchases of approximately $100 to $150 million[110]. - Total debt as of September 30, 2023, was $8.1 billion, down from $8.4 billion at the end of 2022[106]. - The company maintains a $2.0 billion revolving credit facility, which supports its commercial paper program and provides liquidity[108].