Kimberly-Clark Announces Second Quarter 2024 Results and Raises 2024 Outlook

Core Insights - Kimberly-Clark Corporation reported second quarter 2024 results with a net sales of $5.0 billion, down 2% year-over-year, but achieved organic sales growth of 4% driven by innovative products and productivity gains [2][3][11] Financial Performance - Net sales decreased by 2% primarily due to a 5% negative impact from foreign currency translation and a 1% impact from the divestiture of the Tissue and K-C Professional business in Brazil [3][6] - Reported gross margin was 36.0%, while adjusted gross margin increased by 290 basis points to 36.9% due to organic net sales growth and productivity gains [2][4] - Diluted earnings per share (EPS) were $1.61, with adjusted EPS rising 19% to $1.96, despite a $0.12 headwind from currency translation [2][38] Segment Performance - Personal Care segment sales were $2.7 billion, with organic sales growth of 8%, driven by pricing actions and volume gains [18] - Consumer Tissue segment sales decreased by 4% to $1.5 billion, impacted by divestitures and retailer inventory reductions [19] - K-C Professional segment sales fell 5% to $841 million, with organic sales in line with the previous year [20] Operational Highlights - Operating profit for the second quarter was $655 million, including $190 million in costs related to the 2024 Transformation Initiative, with adjusted operating profit increasing by 16% [4][39] - Year-to-date operating profit reached $1.5 billion, reflecting a 15% increase compared to the previous year [16][39] Market Dynamics - Organic sales in Developing and Emerging (D&E) markets rose by 12%, while Developed Markets saw a 3% decline [13] - The company anticipates mid-single-digit organic net sales growth for the year, with reported net sales expected to be negatively impacted by 400 basis points from currency translation [21][45] Future Outlook - The adjusted earnings per share growth outlook has been increased to a mid-to-high teens percentage rate on a constant-currency basis [22][45] - The company continues to focus on enhancing operational scale and delivering high-quality consumer solutions across various price points [2][11]