Financial Data and Key Metrics Changes - The third quarter results indicate strong progress in transforming Kimberly-Clark into an industry-leading personal care company, with consistent operating margin expansion and industry-leading productivity [4][5] - The company achieved its seventh consecutive quarter of volume plus mix-led growth, despite challenges in the broader consumer packaged goods (CPG) industry [4][5] Business Line Data and Key Metrics Changes - In North America, Kimberly-Clark gained 10 basis points of market share in diapers during the third quarter, with a year-to-date increase of 90 basis points [9][10] - The promotional activity in North America is lower than pre-2019 levels, with a focus on driving trial for innovation [10][11] Market Data and Key Metrics Changes - The company is experiencing double-digit growth in the club channel, which is positively impacting its business [12][13] - Digital channels accounted for 100% of growth in North America, with a significant share benefit compared to brick-and-mortar [39][40] Company Strategy and Development Direction - Kimberly-Clark's strategy is centered on innovation-led growth, focusing on improving products across the good, better, best spectrum [8][10] - The company aims to achieve a gross margin of at least 40% and an operating profit of 18%-20% by the end of the decade [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer purchasing power is under pressure, but demand for essential categories remains resilient [47][48] - The company is confident in its ability to mitigate stranded costs from the IFB transaction and expects to see a step-up in growth in adjusted EPS from continuing operations [28][29] Other Important Information - The company is working to stabilize fiber costs through a joint venture with Suzano, which is expected to reduce volatility in input costs [74][76] - The transition to integrated margin management is helping the company proactively manage cost volatility [76][77] Q&A Session Summary Question: Update on competitive dynamics in U.S. diapers - Management acknowledged increased competitive activity but noted solid performance and market share gains in diapers [8][9] Question: Shape of the P&L in 2026 and 2027 - Management indicated it is premature to provide specifics but highlighted targets for organic growth and operating profit consistent with long-term algorithms [26][28] Question: Performance gap in North America - Management explained that the gap was due to hurricane-related shipment impacts and timing of promotional expenses [37][38] Question: Promotional activity and margin implications - Management stated that promotional activity is a tactic to drive trial and that gross margins are expected to expand in Q4 [51][52] Question: Full 2025 guidance and top-line expectations - Management expects to grow in line with category growth and anticipates an acceleration in Q4 [60][62] Question: Competition in the ultra-premium diaper segment - Management expressed confidence in competing through innovation and premiumization strategies [69][70]

Financial Data and Key Metrics Changes - The third quarter results indicate strong progress in transforming Kimberly-Clark into an industry-leading personal care company, with consistent operating margin expansion and industry-leading productivity [5][6] - The company achieved volume plus mix-led growth for the seventh consecutive quarter, despite challenges in the broader consumer packaged goods (CPG) industry [5][6] - The company maintained global weighted market share in the fourth quarter despite increased competitive promotional activity [5][6] Business Line Data and Key Metrics Changes - In North America, Kimberly-Clark gained 10 basis points of market share in diapers during the third quarter, with a year-to-date increase of 90 basis points [12][12] - Promotional activity in North America is down compared to 2019 levels, with a focus on driving trial for innovation [13][15] - The company is experiencing double-digit growth in the club channel, which is positively impacting business performance [16] Market Data and Key Metrics Changes - The company noted a significant migration of consumers to e-commerce and club channels, with 100% of growth in digital channels coming from this segment [43][44] - Year-to-date shipments are largely in line with consumption, with specific impacts from last year's hurricane-related shipment issues [41][42] Company Strategy and Development Direction - Kimberly-Clark's strategy focuses on innovation-led growth and premiumization across all product tiers, aiming to meet consumer needs at every price point [10][73] - The company is committed to achieving long-term operating profit growth and gross margin targets of at least 40% by the end of the decade [32][81] - The partnership with Suzano is expected to stabilize fiber costs and reduce volatility in input costs [78][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate competitive dynamics and maintain strong performance despite external pressures on consumer purchasing power [52][53] - The company anticipates continued organic growth ahead of its categories, with a focus on mitigating stranded costs from the IFB transaction expected to close mid-next year [31][32] Other Important Information - The company is targeting a gross margin of at least 40% and an operating profit of 18% to 20% by the end of the decade [32] - The company is actively managing tariff impacts, with a reduction in gross tariffs from $170 million to $100 million [59][60] Q&A Session Summary Question: Update on competitive dynamics in U.S. diapers - Management acknowledged increased competitive activity but noted solid performance and a slight market share gain in diapers [10][12] Question: Shape of the P&L in 2026 and 2027 - Management indicated it is premature to provide detailed guidance but emphasized targeting organic growth consistent with long-term algorithms [30][31] Question: Performance in North America relative to trends - Management explained that discrepancies in performance data may arise from different data sources and emphasized sustained momentum from innovation [38][41] Question: Promotional activity in North America - Management discussed the strategy of using promotions to drive trial and the expectation of gross margin expansion in Q4 [56][57] Question: Full 2025 guidance and top-line expectations - Management expects to grow in line with category growth, with an acceleration anticipated in Q4 [65][67] Question: Competing in the ultra-premium diaper market - Management expressed confidence in their technology and innovation pipeline, aiming to compete effectively across all product tiers [73][74]

Financial Data and Key Metrics Changes - The third quarter results indicate strong progress in transforming Kimberly-Clark into an industry-leading personal care company, with consistent operating margin expansion and industry-leading productivity [6][8] - The company achieved its seventh consecutive quarter of volume plus mix-led growth, despite challenges in the broader consumer packaged goods (CPG) industry [6][8] Business Line Data and Key Metrics Changes - In North America, Kimberly-Clark gained 10 basis points of market share in diapers during the third quarter, with a year-to-date increase of 90 basis points [15][19] - The promotional activity in North America is lower than pre-2019 levels, with a focus on driving trial for innovation rather than expanding categories [16][18] Market Data and Key Metrics Changes - The company is experiencing double-digit growth in the club channel, driven by consumer shifts and changes in assortment [19] - Digital channels accounted for 100% of growth in North America, with a 7-point share benefit compared to brick-and-mortar [44] Company Strategy and Development Direction - Kimberly-Clark's strategy is centered on innovation-led growth, focusing on improving products across the good, better, best spectrum [12][75] - The company aims to achieve a gross margin of at least 40% and an operating profit of 18% to 20% by the end of the decade [33][82] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer purchasing power is under pressure, but demand for essential categories remains resilient [51] - The company is confident in its ability to mitigate stranded costs from the IFB transaction and expects to see a step-up in growth in adjusted EPS from continuing operations [32][34] Other Important Information - The company is working to reduce volatility in fiber costs through a joint venture with Suzano, which is expected to stabilize input costs [80][82] - The company is committed to driving premiumization across its product lines, with a significant increase in the premium mix in both North America and China [75][76] Q&A Session Summary Question: Update on competitive dynamics in U.S. diapers - Management acknowledged increased competitive activity but noted solid performance and a slight market share gain in diapers [12][15] Question: Shape of the P&L in 2026 and 2027 - Management indicated it is premature to provide detailed guidance but emphasized targeting organic growth ahead of categories [32][33] Question: Performance in North America relative to trends - Management explained that hurricane-related shipment dynamics and promotional timing contributed to stronger performance in the quarter [42][43] Question: Promotional activity in North America - Management stated that promotional activity is a tactic to drive trial and that they are focused on strengthening value propositions [51][52] Question: Cost outlook and tariff impacts - Management reported a reduction in gross tariffs and ongoing efforts to mitigate costs, expecting improvements in Q4 and early 2026 [59][60] Question: Competition in the ultra-premium diaper segment - Management expressed confidence in their technology and innovation pipeline, aiming to compete effectively across all tiers [75][76]