Kimberly-Clark(US:KMB)2023-06-06 17:04Kimberly-Clark Corporation (NYSE: KMB) - Deutsche Bank Global Consumer Conference Summary Company Overview - Kimberly-Clark is a global leader in personal care and hygiene products, with offerings in baby and child care, feminine care, adult care, and consumer and professional tissue. Approximately one in four people in over 170 countries use their products daily [4][5][6]. Core Strategies and Goals - The company is guided by the purpose of "Better Care for a Better World," focusing on long-term value creation for shareholders through innovation, efficient supply chains, and community care [5][6]. - Kimberly-Clark aims to reduce its plastic and natural forest footprint by half, cut Scope 1 and Scope 2 emissions by half, and improve water use in water-stressed communities by half [5][6]. - The company seeks to advance the well-being of 1 billion people by improving access to essential products and clean water, and by championing the progress of women and girls [6]. Market Position and Financial Performance - Personal Care is the largest category, accounting for over half of total sales, with a market size of $100 billion. The company holds the number one or two market positions in over 80% of its global categories [8][9]. - First quarter net sales for 2023 were reported at $5.2 billion, a 2% increase year-over-year and a 5% increase on an organic basis. The company is confident in achieving organic growth of 2% to 4% for the year [16][18]. - The company has faced cumulative cost headwinds of $3.7 billion from 2021 to the end of 2023, but has made strong progress on margin recovery [17][18]. Innovation and Product Development - Kimberly-Clark has doubled the impact of innovation on overall Personal Care organic growth since 2020, with 90% of top projects scaled globally [13][14]. - The company is focused on elevating its product offerings beyond basic benefits to include health, wellness, and sustainability [10][11][12]. - Recent innovations include better materials for baby care products that enhance comfort and health [14][15]. Challenges and Market Outlook - Concerns exist regarding potential consumer weakness and pricing pressures as costs decrease. However, the company believes it can adapt quickly due to its revenue management capabilities [32][34]. - Long-term growth opportunities remain in emerging markets, where income levels are rising, and spending on personal care products is expected to increase [36][37]. Capital Allocation and Financial Discipline - Kimberly-Clark has a strong track record of cash flow generation, returning $22 billion in dividends and share repurchases over the last decade. The company has increased its dividend for 51 consecutive years [18][56]. - The company prioritizes investing in business growth, maintaining dividends, and assessing M&A opportunities while focusing on deleveraging to achieve a target of below 2 times EBITDA [58][59]. Conclusion - Kimberly-Clark is well-positioned to navigate near-term challenges while focusing on long-term growth through innovation, market expansion, and financial discipline. The leadership team is experienced in managing through economic cycles and is committed to delivering balanced and sustainable growth for shareholders [62][63].