US' Kimberly-Clark reports net sales growth of 4% in FY22

In the fourth quarter (Q4) of FY22, sales were $5 billion, even with the year-ago period. Organic sales increased 5 per cent as net selling prices rose approximately 10 per cent and product mix increased sales 1 per cent, while volumes declined 7 per cent. Changes in foreign currency exchange rates reduced sales by 5 per cent, the company said in a press release.

In North America, the company’s organic sales increased 1 per cent YoY in consumer products and increased 18 per cent YoY in K-C Professional (KCP) in Q4 FY22. Outside North America, organic sales rose 3 per cent YoY in developing and emerging markets and 11 per cent YoY in developed markets.

Fourth quarter operating profit was $712 million in 2022 and $521 million in 2021. Excluding the charges related to the 2018 Global Restructuring Program, 2021 adjusted operating profit was $611 million.

Kimberly-Clark’s personal care segment reported sales of $2.6 billion in Q4 FY22, down 3 per cent YoY. The segment’s operating profit as $423 million, same as the year-ago period.

Personal care sales in North America were even with the year-ago period. The segment’s sales in developing and emerging markets decreased 6 per cent YoY in Q4 FY22. Furthermore, organic sales growth was primarily driven by Latin America and China, offset by declines in Southeast Asia. Sales in developed markets outside North America (Australia, South Korea, and Western/Central Europe) decreased by 4 per cent.

In the consumer tissue segment, the company’s Q4 sales were $1.6 billion, even with the year-ago period with organic sales up 5 per cent.

Consumer tissue segment’s sales in North America increased by 2 per cent YoY in Q4 FY22. Sales in developing and emerging markets decreased by 1 per cent. Sales in developed markets outside North America decreased by 3 per cent.

For the K-C Professional segment, fourth quarter FY22 sales were $0.8 billion, up by 11 per cent YoY, including organic sales growth of 16 per cent.

KCP segment’s sales in North America increased by 17 per cent YoY. Sales in developing and emerging markets increased by 3 per cent. Sales in developed markets outside North America increased by 1 per cent.

For fiscal 2023, the company expects net sales to increase by 0 to 2 per cent. Operating profit is estimated to be up mid-to-high single digits versus adjusted operating profit in 2022. Furthermore, Kimberly-Clark’s earnings per share is expected to grow by 2 to 6 per cent versus adjusted earnings per share in 2022.

Fibre2Fashion News Desk (DP)