Kimberly-Clark Meets Q4 Earnings Estimates, Announces Dividend Hike

Core Insights - Kimberly-Clark Corporation reported fourth-quarter 2024 results with earnings in line with estimates but a year-over-year decline, while sales exceeded consensus but also declined year over year [1][2][3] Financial Performance - Adjusted earnings were $1.50 per share, a decrease of 0.7% year over year due to reduced income from equity companies, offset by increased adjusted operating profit and reduced diluted shares outstanding [2] - Sales totaled$ 4,928 million, surpassing the consensus estimate of $4,834.6 million, but down 0.8% from the previous year [3] - The adjusted gross margin reached 35.4%, a 50-basis point increase, supported by productivity savings and volume gains, though partially offset by increased manufacturing costs and supply chain investments [7] - Adjusted operating profit was$ 684 million, reflecting a 2.1% increase despite negative impacts from currency translation and divestitures [8] Segment Performance - North America segment net sales were $2,722 million, a 0.5% decline, while organic sales increased by 1.1% driven by volume growth [11] - International Personal Care segment net sales were$ 1,375 million, down 1.3%, but organic sales rose 5.3% due to pricing and volume growth [13] - International Family Care & Professional segment reported net sales of $831 million, a 1.2% decline, with organic sales growing by 0.7% [15] Strategic Initiatives - The company implemented a transformative "Powering Care" strategy, restructuring into three key segments to enhance operational efficiency and competitive positioning [10] - Kimberly-Clark's innovation-driven growth model contributed to volume increases and improved product mix, supporting strategic investments [4][6] Shareholder Returns - The company announced a quarterly dividend increase of 3.3% to$ 1.26 per share, marking the 53rd consecutive year of dividend increases [19] - In 2024, Kimberly-Clark returned $2.6 billion to shareholders through dividends and share buybacks, repurchasing 7.2 million shares for$ 1 billion [18] Future Outlook - For 2025, the company expects organic sales growth to exceed the market average of around 2%, despite projected adverse impacts from currency rates and divestitures [20][21] - Adjusted earnings per share are forecasted to increase at a mid-to-high single-digit rate on a constant-currency basis, accounting for negative impacts from divestitures and currency translation [23]