Kimberly-Clark has reported sales worth $5.0 billion (€4.3 billion) in the third quarter of its financial year, up 7% compared to the same period in 2020.
The company's personal care segment saw strong performance with sales increasing by 14%.
Quarterly Highlights
Kimberly-Clark benefited from changes in foreign currency exchange rates, increasing sales 1%.
The net impact of the Softex Indonesia acquisition and exited businesses in conjunction with its 2018 Global Restructuring Program boosted sales 2%.
Organic sales increased 4% as net selling prices rose 3% and product mix increased sales 1%.
In North America, organic sales increased 3% in consumer products and 16% in K-C Professional.
Outside North America, organic sales were up 6% in developing and emerging (D&E) markets and were even with the previous year in developed markets.
'Dynamic And Challenging Macro Environment'
Commenting on the results, chairman and CEO Mike Hsu said, "Our third quarter results reflect a dynamic and challenging macro environment. Our organic sales were strong, including double-digit growth in a number of our personal care markets, and improving performance in tissue and our professional business.
"Market share performance also remained strong, demonstrating the strength of our innovation and excellent local commercial execution."
Hsu added that the group's earnings were negatively impacted by significant inflation and supply chain disruptions "that increased our costs beyond what we anticipated. We are taking further action, including additional pricing and enhanced cost management, to mitigate these headwinds as it is becoming clear they are not likely to be resolved quickly."
Quarter Three Results
Third quarter adjusted operating profit was $745 million in 2021 and $806 million in 2020, the company said.
Results were impacted by higher input costs of $480 million, driven by pulp and polymer-based materials, distribution, and energy costs.
The group benefitted from organic sales growth, $115 million of cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) programme, $35 million of cost savings from the 2018 Global Restructuring Programme and lower marketing, research, and general expense.
Outlook
Kimberly-Clark also updated its guidance for full-year 2021, with net sales projected to increase between 1% to 2% from the prior assumption of 1% to 4%.
Hsu added, "We will continue to invest in our brands and capabilities as we navigate through this volatile and difficult macro environment. Our strategy is working, and we remain confident in our future and our ability to create long-term shareholder value."
© 2021 European Supermarket Magazine. Article by Conor Farrelly. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
