Kimberly-Clark(US:KMB)2025-10-30 11:30Financial Data and Key Metrics Changes - The third quarter organic net sales increased by 2.5%, driven by a 2.4% volume growth, with Baby and Child Care showing volume growth across multiple regions [40] - Adjusted operating profit dollars for Q3 were flat compared to the prior year and down 3.2% for the first nine months of the year [40][41] - Year-to-date adjusted operating profit margin was 17%, consistent with the prior year despite tariff headwinds [41][42] Business Line Data and Key Metrics Changes - North America achieved a volume plus mix growth of 2.1% in Q3, with strong performance in adult and feminine care, and baby and child care [19][20] - International Personal Care segment reported a volume plus mix growth of 3.6% in Q3, with significant gains in China, Korea, Australia, and Indonesia [29] - The diaper business in North America grew volume by 7% and gained 90 basis points of market share year-to-date [27] Market Data and Key Metrics Changes - In North America, the company gained 30 basis points of share in the first half of the year, with overall market share improvements in Personal Care [21][24] - Internationally, the company saw share gains in diapers across several markets, including China (270 basis points), South Korea (230 basis points), Brazil (90 basis points), and Indonesia (150 basis points) [29][38] - The weighted average private label share in personal care categories has consistently declined for the past five quarters [21] Company Strategy and Development Direction - The company is focused on its "Powering Care" strategy, which emphasizes innovation, brand building, and operational efficiency to drive growth [4][16] - Recent portfolio moves are aimed at sharpening focus on higher margin, higher growth personal care categories [10][11] - The company plans to leverage its global scale to deliver the best products across the good, better, best spectrum in various markets [28] Management's Comments on Operating Environment and Future Outlook - Management noted that despite persistent macro challenges, the "Powering Care" strategy is creating momentum and energy across the organization [16] - The company remains confident in its ability to unlock long-term potential and drive shareholder value [51] - The outlook for net sales and operating profit growth reflects a disciplined approach to leading market growth over time [43] Other Important Information - The company announced a commitment of $29 million to menstrual care and maternal and infant care across seven major markets [6] - Year-to-date adjusted free cash flow was approximately $1.3 billion, with expectations to deliver around $2 billion for the full year [42] Q&A Session Summary Question: What are the expectations for net sales growth in 2025? - The company expects to grow broadly in line with market growth where it competes in 2025, while maintaining the intent to lead market growth over time [43] Question: How is the company addressing tariff impacts? - The company projects a net tariff impact of approximately $50 million for the year, with efforts to mitigate some of the headwinds through productivity gains [45][46] Question: What is the outlook for adjusted earnings per share? - The company continues to expect low to mid single-digit growth versus the prior year on a constant currency basis, despite various headwinds [48]