Personal care firm Kimberly-Clark has posted 9% year-on-year growth in organic sales to $5.1 billion (€5 billion) in the second quarter of its financial year, driven by price increases and product mix, among other factors.
The company has raised its full-year organic sales growth forecast to a range of 5% - 7%, from its previous outlook of 4% - 6%.
In North America, the company saw organic sales increasing by 11% in the consumer products division and 8% in K-C Professional.
Outside North America, organic sales grew 8% in developing and emerging (D&E) markets and 9% in developed markets.
Operating profit during the quarter amounted to $621 million (€608 million), up from $613 million (€600.1 million) in the same period last year.
However, higher marketing, research and general expense, as well as unfavourable foreign currency transaction impacted its performance.
The company added that it spent $405 million (€396.5 million) in higher input costs in this period.
'Input Cost Inflation'
Mike Hsu, chairman and CEO of Kimberly-Clark, said, "Our results also reflect ongoing market volatility and significant input cost inflation. We continue to be thoughtful with our response to inflation, focusing on providing value to our consumers while leveraging price and cost discipline to mitigate macro headwinds for margin improvement over time."
"As we manage our business prudently in the near-term, we're committed to investing in our people, brands and capabilities to ensure we continue to be well positioned to deliver balanced and sustainable growth over the long-term," Hsu added.
Divisional Performance
The company's personal care division posted an 8% growth in sales to $2.7 billion (€2.6 billion), with the acquisition of Thinx contributing to growth in sales.
Operating profit in the division increased to $466 million (€456.3 million), up 3% year-on-year, driven by organic sales growth and cost savings.
In the consumer tissue segment, sales amounted to $1.5 billion (€1.5 billion), registering year-on-year growth of 8%.
Operating profit in the division dropped 9%, to $178 million (€174.3 million), due to input cost inflation and higher marketing, research and general expenditure.
K-C Professional posted second-quarter sales growth of 5%, with net selling prices increasing by 9%. Operating profit for the quarter amounted to $85 million (€83.2 million), down 23% year-on-year.
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
