Kimberly-Clark(KMB)2025-04-22 12:30Financial Data and Key Metrics Changes - The company's top line was somewhat softer than expectations, but overall results were consistent with the full-year plan [7] - Organic sales growth for the first quarter was slightly below expectations, while profitability was in line, supported by strong productivity delivery [18][19] - The company is targeting a volume and mix-based organic growth for the year that is ahead of the categories in its markets [22] Business Line Data and Key Metrics Changes - The company is on track to generate approximately 200 million of SG&A savings in the next few years [9] - The first quarter saw a decline in North America private label shipments, impacting total company organic sales [20] Market Data and Key Metrics Changes - Weighted average category growth was expected to be around 2% but was in the 1.5% to 2% range for the first quarter [19] - The company faced lower year-on-year North America private label shipments, which represented about 40 basis points to total company organic sales [20] Company Strategy and Development Direction - The company continues to execute its "Powering Care" strategy, focusing on differentiation, productivity, and agility [10][11] - The strategy includes delivering stronger differentiation at every rung of the good-better-best ladder and enabling a faster, more agile organization [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the plan despite external headwinds, emphasizing the importance of innovation and consumer value propositions [26][27] - The company is addressing a 300 million tariff impact, with two-thirds attributed to US tariffs on China, and is working to mitigate these costs through supply chain adjustments [56][60] Other Important Information - The company is maintaining its investments in innovation and marketing despite the cost pressures from tariffs [81] - The management highlighted the importance of affordability for consumers, especially in the current economic environment [71] Q&A Session Summary Question: Organic growth performance in North America - Management acknowledged that organic sales were below expectations and discussed factors affecting this, including a lower category growth rate and strategic pricing investments [18][19][20] Question: Impact of tariffs on costs - Management detailed the 300 million gross impact from tariffs, while still planning to invest in innovation and marketing [117][120] Question: Savings program and productivity - Management confirmed that they are ahead of their productivity savings targets and are optimistic about future savings opportunities [149][151]