Kimberly-Clark Beats EPS, Misses Revenue

Core Viewpoint - Kimberly-Clark reported better-than-expected adjusted earnings per share of $1.93 for Q1 2025, despite revenue falling short of estimates due to currency impacts and divestitures [2][6]. Financial Performance - Non-GAAP EPS for Q1 2025 was $1.93, exceeding analyst estimates of $1.90, but down 4.0% from $2.01 in Q1 2024 [3][6]. - GAAP revenue was $4.84 billion, missing the projected $4.89 billion, representing a 6.0% decline year-over-year from $5.15 billion [3][7]. - Gross margin (Non-GAAP) slightly decreased to 36.9%, down 20 basis points from the previous year [3][6]. - Net income (GAAP) was $567 million, a decrease of 12.4% from $647 million in Q1 2024 [3]. Business Overview - Kimberly-Clark operates globally with well-known brands such as Huggies, Kleenex, and Kotex, focusing on essential consumer categories [4]. - The company is implementing strategic initiatives centered around supply chain optimization to enhance operational efficiency and cost management [4]. Sustainability and Innovation - The company's sustainability commitment is integral to its strategy, aiming to reduce the environmental impact of its products [5]. - Kimberly-Clark is investing in innovative product development, including acquisitions like Thinx Inc., to support growth in modern product categories [5]. Geographic Performance - North American sales decreased by 3.9%, while International Personal Care saw an 8.9% decline, influenced by unfavorable currency effects [8]. - The company experienced operational improvements despite these declines, attributed to its efficiency-focused transformation initiative [8]. Future Outlook - Kimberly-Clark has adjusted its outlook for 2025, expecting flat to modest improvement in adjusted operating profit and EPS on a constant-currency basis [10]. - The cautious outlook is influenced by ongoing cost challenges, geopolitical considerations, and moderated economic forecasts [10]. - The execution of strategic initiatives, particularly in supply chain optimization and product innovation, will be crucial for the company's financial performance in the coming quarters [11].