Kimberly-Clark Corporation (KMB) Bundle
A Brief History of Kimberly-Clark Corporation
Kimberly-Clark Corporation (KMB) has established itself as a key player in the global consumer goods market, particularly known for its paper-based products. As of 2024, the company has undergone significant transformations and faced various challenges, impacting its financial performance and operational strategies.
Financial Performance Overview
For the three months ended September 30, 2024, Kimberly-Clark reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $4.95 billion | $5.13 billion |
| Operating Profit | $1.15 billion | $774 million |
| Net Income | $907 million | $587 million |
| Diluted Earnings per Share | $2.69 | $1.73 |
For the nine months ended September 30, 2024, the financial highlights included:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Sales | $15.13 billion | $15.46 billion |
| Operating Profit | $2.66 billion | $1.67 billion |
| Net Income | $2.10 billion | $1.26 billion |
| Diluted Earnings per Share | $6.21 | $3.70 |
Recent Developments
In 2024, Kimberly-Clark executed a significant transformation initiative, which included divesting its Personal Protective Equipment (PPE) business. This strategic move was aimed at streamlining operations and focusing on core business segments. The divestiture contributed to a decrease in net sales, particularly in North America, where sales declined by 3% due to lower organic sales driven by reduced volume.
Market Performance and Trends
Kimberly-Clark's market performance has been influenced by various factors, including currency fluctuations and pricing strategies in hyperinflationary economies, particularly in Argentina. The company experienced a 1% increase in organic sales, driven by changes in net selling prices and product mix gains.
Cash Flow and Capital Management
During the nine months ended September 30, 2024, Kimberly-Clark generated:
| Cash Flow Metric | Amount |
|---|---|
| Cash Provided by Operations | $2.4 billion |
| Capital Spending | $512 million |
| Proceeds from Asset Dispositions | $649 million |
| Cash Used for Financing | $2.5 billion |
The company maintained a total debt of $7.5 billion as of September 30, 2024, down from $8.0 billion at the end of 2023.
Stockholder Equity and Share Repurchase Program
As of September 30, 2024, Kimberly-Clark's stockholders' equity stood at $1.44 billion. The company has been active in share repurchases, buying back 5.4 million shares at a cost of $752 million during the nine months.
A Who Owns Kimberly-Clark Corporation (KMB)
Shareholder Composition
As of 2024, Kimberly-Clark Corporation (KMB) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Ownership Percentage |
|---|---|
| Institutional Investors | 75.2% |
| Individual Investors | 18.5% |
| Company Executives and Directors | 6.3% |
Major Institutional Shareholders
The following table lists the top institutional shareholders of Kimberly-Clark Corporation as of 2024:
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.7% | 33.0 million |
| BlackRock, Inc. | 8.2% | 31.2 million |
| State Street Corporation | 5.1% | 19.4 million |
| Wellington Management Group LLP | 4.5% | 17.0 million |
| Capital Research and Management Company | 4.0% | 15.2 million |
Executive Ownership
Executive management also holds a significant portion of shares. The following table outlines the ownership of key executives:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Michael D. Hsu | Chairman & CEO | 1.2 million | 0.3% |
| Maria J. Henry | Chief Financial Officer | 0.5 million | 0.1% |
| Thomas J. Falk | Former Chairman & CEO | 0.9 million | 0.2% |
| Other Executives | Various | 2.4 million | 0.6% |
Recent Stock Performance
As of September 30, 2024, Kimberly-Clark's stock performance is as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $139.34 |
| Market Capitalization | $46.5 billion |
| 52-Week High | $144.50 |
| 52-Week Low | $120.00 |
| Dividend Yield | 2.64% |
Recent Developments
Kimberly-Clark has been actively restructuring its operations, which included divestitures impacting its overall market strategy. In 2024, the company completed the sale of its PPE business, leading to a strategic refocus on core product lines.
The company reported net sales of $15.1 billion for the nine months ended September 30, 2024, representing a 2% decrease year-over-year, primarily due to unfavorable currency impacts and divestitures. The operating profit for the same period was $2.7 billion.
Kimberly-Clark Corporation (KMB) Mission Statement
Overview of Mission Statement
The mission statement of Kimberly-Clark Corporation emphasizes delivering essential health and hygiene products that improve the quality of life for people around the globe. The company aims to achieve this through innovative solutions and a commitment to sustainability.
Financial Performance Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $4.952 billion | $5.132 billion | -4% |
| Net Income | $915 million | $591 million | +55% |
| Operating Profit | $1.154 billion | $774 million | +49% |
| Diluted Earnings per Share | $2.69 | $1.73 | +55% |
| Gross Profit | $1.784 billion | $1.838 billion | -3% |
Business Segments Overview
Kimberly-Clark operates through several key segments, each contributing to the mission of enhancing well-being.
| Business Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Personal Care | $2.635 billion | $2.700 billion | -2% |
| Consumer Tissue | $1.539 billion | $1.567 billion | -2% |
| K-C Professional | $767 million | $854 million | -10% |
Strategic Initiatives
In 2024, Kimberly-Clark is focused on several strategic initiatives, including:
- Enhancing product innovation to meet evolving consumer needs.
- Implementing sustainability practices across all operations.
- Investing in supply chain efficiency to mitigate inflationary pressures.
Market Presence
Kimberly-Clark’s products are marketed globally under well-known brands such as:
- Huggies
- Kleenex
- Scott
- Depend
- Kotex
Investment in Community and Sustainability
The company is committed to responsible sourcing and reducing its environmental footprint:
- Targeting a 50% reduction in plastic waste by 2030.
- Investing in renewable energy sources for manufacturing facilities.
Conclusion of Financial Overview
As of Q3 2024, Kimberly-Clark reported total assets of $17.165 billion and total liabilities of $15.721 billion, reflecting a robust financial position within the industry.
How Kimberly-Clark Corporation (KMB) Works
Business Overview
Kimberly-Clark Corporation (KMB) operates in the consumer goods sector, producing essential health and hygiene products. The company is segmented into three main categories: Personal Care, Consumer Tissue, and K-C Professional.
Financial Performance
As of September 30, 2024, Kimberly-Clark reported consolidated net sales of $5.0 billion, reflecting a decrease of 4% compared to the previous year. For the nine months ended September 30, 2024, net sales totaled $15.1 billion, down 2% year-over-year. Organic sales increased by 1% for the quarter and 4% for the nine-month period, primarily driven by higher net selling prices in hyperinflationary economies, particularly Argentina.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales | $5.0 billion | $5.1 billion | -4% | $15.1 billion | $15.5 billion | -2% |
| Operating Profit | $1.2 billion | $774 million | +49% | $2.7 billion | $1.7 billion | +59% |
| Net Income | $907 million | $587 million | +55% | $2.1 billion | $1.3 billion | +67% |
| Diluted Earnings per Share | $2.69 | $1.73 | +55% | $6.21 | $3.70 | +68% |
Segment Performance
The company's performance varies across its segments:
- Personal Care: Net sales reached $2.6 billion in Q3 2024, down 2% from $2.7 billion in Q3 2023. Operating profit was $482 million, a decrease of 4% year-over-year.
- Consumer Tissue: This segment reported net sales of $1.5 billion in Q3 2024, also down 2% from the previous year, with an operating profit of $265 million.
- K-C Professional: The segment saw a more significant decline with net sales of $767 million, down 10% from Q3 2023. Operating profit was $161 million, a decrease of 4% year-over-year.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Q3 2024 Operating Profit | Q3 2023 Operating Profit |
|---|---|---|---|---|
| Personal Care | $2.6 billion | $2.7 billion | $482 million | $502 million |
| Consumer Tissue | $1.5 billion | $1.6 billion | $265 million | $267 million |
| K-C Professional | $767 million | $854 million | $161 million | $168 million |
Cash Flow and Capital Resources
For the nine months ended September 30, 2024, Kimberly-Clark generated $2.4 billion in cash from operations, slightly up from $2.3 billion in the prior year. This increase was attributed to higher operating profits and favorable changes in working capital.
Cash used in investing activities amounted to $94 million, compared to a cash outflow of $266 million in the previous year, mainly due to proceeds from asset dispositions, particularly the sale of the PPE business, which generated $649 million.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Provided by Operations | $2.4 billion | $2.3 billion |
| Cash Used in Investing Activities | $94 million | ($266 million) |
| Proceeds from Asset Dispositions | $649 million | $219 million | Cash Used for Financing Activities | $2.5 billion | $1.6 billion |
Debt and Equity
As of September 30, 2024, Kimberly-Clark had total debt of $7.5 billion, down from $8.0 billion at the end of 2023. The company maintains a $2.0 billion revolving credit facility, which remains unused, providing additional liquidity if necessary.
During the nine months ended September 30, 2024, Kimberly-Clark repurchased 5.4 million shares at a total cost of $752 million as part of its share repurchase programs.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $7.5 billion | $8.0 billion |
| Revolving Credit Facility | $2.0 billion | Unused |
| Shares Repurchased | 5.4 million | N/A |
| Total Cost of Repurchases | $752 million | N/A |
Market Position and Strategy
Kimberly-Clark continues to focus on enhancing its market position through strategic investments in its product lines and efficiency improvements. The company is navigating challenges such as currency fluctuations and inflationary pressures, particularly in hyperinflationary markets like Argentina.
The 2024 Transformation Initiative aims to streamline operations and improve profitability across all business segments.
How Kimberly-Clark Corporation (KMB) Makes Money
Business Segments Overview
Kimberly-Clark Corporation operates through three primary segments:
- Personal Care
- Consumer Tissue
- K-C Professional
Financial Performance for 2024
As of September 30, 2024, Kimberly-Clark reported consolidated net sales of $15.1 billion, a decrease of 2% compared to the same period in the previous year. The breakdown of net sales by segment is as follows:
| Segment | Q3 2024 Net Sales ($ millions) | Q3 2023 Net Sales ($ millions) | Change (%) |
|---|---|---|---|
| Personal Care | 2,635 | 2,700 | -2% |
| Consumer Tissue | 1,539 | 1,567 | -2% |
| K-C Professional | 767 | 854 | -10% |
| Total | 4,952 | 5,132 | -4% |
Operating profit for the nine months ended September 30, 2024, was reported at $2.7 billion, an increase of 59% from $1.7 billion in the prior year. The operating profit by segment was:
| Segment | Q3 2024 Operating Profit ($ millions) | Q3 2023 Operating Profit ($ millions) | Change (%) |
|---|---|---|---|
| Personal Care | 482 | 502 | -4% |
| Consumer Tissue | 265 | 267 | -1% |
| K-C Professional | 161 | 168 | -4% |
| Total | 1,154 | 774 | +49% |
Revenue Drivers
The primary revenue drivers for Kimberly-Clark include:
- Product Mix and Pricing: A shift in product mix and net selling prices contributed to organic sales growth, particularly in hyperinflationary economies such as Argentina.
- Volume Growth: Volume increases in North America and Developing & Emerging markets (D&E) helped offset declines in certain segments.
- Cost Management: Continuous focus on supply chain productivity led to significant savings, amounting to approximately $130 million for Q3 2024.
Net Income and Earnings Per Share
Net income attributable to Kimberly-Clark Corporation for the nine months ended September 30, 2024, was $2.1 billion, representing a 67% increase compared to $1.3 billion in the prior year. The diluted earnings per share (EPS) were:
| Period | Q3 2024 Diluted EPS ($) | Q3 2023 Diluted EPS ($) | Change (%) |
|---|---|---|---|
| Three Months | 2.69 | 1.73 | +55% |
| Nine Months | 6.21 | 3.70 | +68% |
Cash Flow and Capital Management
Cash provided by operations was $2.4 billion during the nine months ended September 30, 2024, compared to $2.3 billion in the prior year. This increase was driven by higher operating profit and favorable changes in working capital. Key metrics include:
| Metric | Amount ($ millions) |
|---|---|
| Cash Provided by Operations | 2,400 |
| Capital Expenditures | 512 |
| Share Repurchases | 752 |
Future Outlook and Strategic Initiatives
Kimberly-Clark's ongoing initiatives include:
- Implementation of the 2024 Transformation Initiative aimed at enhancing operational efficiency.
- Focus on innovation within product lines to meet changing consumer preferences.
- Continued emphasis on cost management to mitigate impacts from inflation and currency fluctuations.
The effective tax rate for the three months ended September 30, 2024, was 20.5%, compared to 22.5% the previous year.
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Article updated on 8 Nov 2024
Resources:
- Kimberly-Clark Corporation (KMB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kimberly-Clark Corporation (KMB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kimberly-Clark Corporation (KMB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.