Latest news with #volume growth
Times of Oman
4 days ago
- Business
- Times of Oman
Cement sector to see tepid Q2FY26 volumes, price gains offer relief: Report
New Delhi: India's cement sector is expected to witness subdued volume growth in the second quarter of Financial Year 2026 (Q2FY26) due to seasonal weakness, but improving realisations are offering a silver lining, said a report by Nuvama. The report added that while operating deleverage and higher expenses may pressure margins, softening fuel prices and ongoing cost-efficiency measures by industry players are likely to cushion the impact. "We believe Q2FY26 will witness subdued volume growth on account of a seasonally weak quarter; however, improving realisations have brought cheer to the industry. The sequential dip in realisation and other expenses being higher on account of operating deleverage shall be somewhat negated by softening fuel prices (lag effect) and various cost efficiency measures undertaken by players," the report added. The cement industry showed signs of recovery in the first quarter of FY26, with 15 major companies reporting around 7 per cent growth in sales volumes compared to last year (though volumes were down 11 per cent from the previous quarter). This growth was mainly driven by increased government spending on infrastructure. Ambuja Cement (including its recent acquisitions) and JK Cement led the pack with over 14 per cent volume growth year-on-year. Prices also improved in southern and eastern regions, pushing up the average selling price by about 5 per cent compared to the previous quarter, even though it was slightly lower than the same period last year. Meanwhile, raw material costs dropped by 5 per cent quarter-on-quarter and 15 per cent year-on-year, mainly due to better inventory management. As a result, the industry's profit per tonne (EBITDA/t) improved by 10 per cent quarter-on-quarter and 26 per cent year-on-year, reaching Rs 1,140 per tonne. Looking ahead, the report added that the monsoon season (Q2FY26) is typically a slow period for construction, so sales may dip. The report further added that the falling fuel costs are expected to help maintain profitability. In August current year, cement prices remained flat compared to the previous month but were stronger on a year-on-year basis. The monsoon season slowed down construction activity, particularly in rural areas and infrastructure projects, leading to weaker offtake and limiting companies' ability to raise or sustain prices. Region-wise, demand in the eastern market fell sharply due to early rains, though prices remained steady at Rs 353 per bag. In the southern region, prices increased by Rs 10 per bag despite the monsoon.
CTV News
01-08-2025
- Business
- CTV News
Kleenex tissue maker Kimberly-Clark's sales jump on strong volumes
Boxes of Kleenex tissues are displayed in a pharmacy, Monday, April 19, 2021 in New York. (AP Photo/Mark Lennihan) Kimberly-Clark's second-quarter organic sales rose as the Kleenex tissue maker recorded its best volume growth in five years amid lower prices, sending its shares up about six per cent on Friday. The Dallas-based firm has broadened its portfolio to offer products from budget to premium price tiers, in an effort to capture demand across income levels and fend off rivals such as Procter & Gamble. 'In this challenging consumer environment, we believe it's important to meet consumers where they need us,' said CEO Mike Hsu in a statement. 'We've adjusted some entry price points, and more importantly, we're cascading features from our premium offerings into our value offerings.' The Huggies diaper maker also raised its annual profit forecast. Organic sales for the quarter ended June 30 were up 3.9 per cent, driven by a five per cent growth in overall volumes. 'Strong volume demonstrates the effectiveness of KMB's innovation ... with value positioning attracting demand across product tiers,' said CFRA analyst Ana Garcia. Prices were 1.2 per cent lower than last year. Kimberly-Clark on Friday estimated full-year incremental tariff-related costs at about US$170 million. It had warned of US$300 million in additional costs earlier in April, primarily due to U.S. President Donald Trump's levies on China. Those duties have since come down. It now expects adjusted earnings per share attributable for 2025 to grow at a low to mid-single-digit rate, compared with an earlier forecast for flat-to-positive growth on a constant-currency basis. The profit forecast still includes the International Family Care and Professional business until the close of the joint venture deal with Brazilian pulp maker Suzano in mid-year 2026, the company said. In June, Kimberly struck a US$3.4 billion deal to sell a majority stake in its international tissue business to Suzano, as part of efforts to streamline its business to control costs and drive growth in more profitable brands. --- Reporting by Savyata Mishra and Neil J Kanatt in Bengaluru; Editing by Devika Syamnath and Sriraj Kalluvila
Yahoo
01-08-2025
- Business
- Yahoo
Kimberly-Clark beats Q2 expectations, shares rise on strong volume growth
-- Kimberly-Clark Corporation reported second-quarter earnings that significantly exceeded analyst expectations, driven by the strongest volume growth in five years. Shares rose 3.4% following the announcement as investors responded positively to the company's performance and outlook. The consumer products giant posted adjusted earnings per share of $1.92, handily beating the analyst consensus of $1.65 by $0.27. Revenue came in at $4.16 billion, below the consensus estimate of $4.77 billion, but organic sales grew 3.9% YoY, fueled by robust volume growth of 5.0%. The revenue decline of 1.6% was primarily attributed to divestitures, business exits, and unfavorable currency translation. "Our second quarter results are indicative of the exceptional progress we are making executing our Powering Care strategy," said Kimberly-Clark (NASDAQ:KMB) Chairman and CEO Mike Hsu. "This was a very active quarter and one of the strongest in our recent history. We delivered strong organic sales growth, fueled by the highest volume growth we've achieved in five years." The company's adjusted gross margin was 36.9%, down 180 basis points versus the prior year, reflecting planned investments to improve price-value tiers across the portfolio and incremental tariff-driven costs, partially offset by productivity gains. North America organic sales increased 4.3%, while International Personal Care organic sales grew 3.3%. Following the strong performance, Kimberly-Clark raised its 2025 outlook, now expecting organic sales growth to outpace the weighted average growth in its categories and countries, which are currently growing at approximately 2%. The company anticipates adjusted operating profit to grow at a low-to-mid single-digit rate on a constant-currency basis versus the prior year. Adjusted free cash flow is expected to be approximately $2 billion in 2025, with adjusted earnings per share projected to grow at a low-to-mid single-digit rate on a constant-currency basis. Related articles Kimberly-Clark beats Q2 expectations, shares rise on strong volume growth Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett After soaring 149%, this stock is back in our AI's favor - & already +25% in July Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
Kimberly-Clark Announces Second Quarter 2025 Results, Raises 2025 Outlook
Strong results driven by innovation-led volume growth, excellent commercial execution, and effective cost management in dynamic operating environment Full year outlook reflects solid performance in second year of Powering Care transformation DALLAS, Aug. 1, 2025 /PRNewswire/ -- Kimberly-Clark Corporation (Nasdaq: KMB) today reported second quarter 2025 results driven by resilient consumer demand, the introduction of pioneering innovative new products, and leveraging sustained productivity momentum. "Our second quarter results are indicative of the exceptional progress we are making executing our Powering Care strategy" said Kimberly-Clark Chairman and CEO, Mike Hsu. "This was a very active quarter and one of the strongest in our recent history. We delivered strong organic sales growth, fueled by the highest volume growth we've achieved in five years. Our durable brands, differentiated value propositions and innovation investments enabled us to enhance and maintain leading market share positions across categories and price tiers. We took decisive actions to set Kimberly-Clark up for enhanced, sustainable growth and profitability. Hsu continued: "Our strategy comes to life through our people—I'm proud of how our team continues to perform as we transform. Despite a dynamic operating environment, we are well-positioned to deliver a strong second year of our transformation." Quarter Highlights Unless otherwise noted, reported results in this release are based on continuing operations and exclude the International Family Care and Professional ("IFP") business, which is reported as discontinued operations. Net sales of $4.2 billion were down 1.6 percent, driven primarily by divestitures and business exits and unfavorable currency translation, with organic sales growth of 3.9 percent versus the prior year. Reported gross margin was 35.0 percent; adjusted gross margin was 36.9 percent, down 180 basis points versus the prior year. Diluted earnings per share ("EPS") attributable to Kimberly-Clark were $1.53; adjusted EPS attributable to Kimberly-Clark were $1.92, down 2.0 percent versus prior year. Second Quarter 2025 Results Net sales of $4.2 billion were 1.6 percent lower than the prior year due to negative impacts of approximately 4.4 percent from a combination of the Personal Protective Equipment ("PPE") divestiture and the exit of the company's private label diaper business in the US and approximately 1.0 percent from foreign currency translation. Organic sales increased 3.9 percent driven by 5.0 percent volume led growth partially offset by investments in price of 1.2 percent, while portfolio mix was broadly in line with a year ago. Gross margin was 35.0 percent in the quarter, inclusive of $82 million, or approximately 190 basis points, of charges related to the 2024 Transformation Initiative. Excluding these charges, adjusted gross margin was 36.9 percent, down 180 basis points versus the prior year driven by unfavorable pricing net of cost inflation, reflecting planned investments to improve price:value tiers across the portfolio as well as incremental tariff-driven costs, that were partially offset by strong productivity gains. Second quarter operating profit was $592 million compared to $539 million in the prior year. Operating profit in each period was inclusive of 2024 Transformation Initiative charges totaling $121 million and $190 million, respectively. Excluding these items, adjusted operating profit was $713 million, down 2.2 percent versus the prior year driven by gross profit headwinds partially offset by planned lower marketing, research and general expenses. Net interest expense was $62 million and in line with the prior year. The second quarter effective tax rate was 22.6 percent, compared to 13.0 percent in the prior year. On an adjusted basis, the effective rate was 20.9 percent compared to 20.4 percent in the prior year. Net income of equity companies was $47 million compared to $63 million in the prior year driven primarily by unfavorable currency impacts. Income from discontinued operations, net of income taxes was $68 million compared to $89 million in the prior year driven primarily by pre-tax separation costs of $33 million, partially offset by a reduction in depreciation and amortization expense of $10 million due to discontinued operations reporting requirements. Diluted EPS attributable to Kimberly-Clark in the quarter were $1.53 on a reported basis, down from $1.61 in the prior year. These reported amounts are inclusive of charges related to the company's 2024 Transformation Initiative of $0.27 and $0.35, respectively, and $0.12 of IFP related separation charges in the quarter. On an adjusted basis, diluted EPS attributable to Kimberly-Clark decreased 2.0 percent to $1.92 driven by lower adjusted operating profit and lower net income of equity companies. Year-To-Date Results For the first half of the year, sales of $8.2 billion decreased 4.0 percent primarily due to an approximately 3.4 percent negative impact from a combination of the PPE divestiture and the exit of the company's private label diaper business in the US, as well as an approximately 1.7 percent negative impact from foreign currency translation. Organic sales grew 1.2 percent primarily from a 2.3 percent increase in volume, partially offset by price investments of 1.2 percent, while portfolio mix was broadly in line with a year ago. For the first half of the year, gross margin was 36.1 percent, inclusive of $135 million, or approximately 160 basis points, of charges related to the 2024 Transformation Initiative. Excluding these charges, adjusted gross margin was 37.7 percent, down 120 basis points versus the prior year driven by unfavorable pricing net of cost inflation, reflecting planned investments to improve price:value tiers across the portfolio as well as incremental tariff-related costs, partially offset by strong productivity gains. Year-to-date operating profit was $1.2 billion, including $196 million of costs related to the company's transformation initiative. Year-to-date adjusted operating profit was $1.4 billion in 2025 versus $1.5 billion in 2024, a decline of 4.7 percent. This decline included an unfavorable impact from currency translation of 120 basis points and the gross profit headwinds discussed above, partially offset by planned lower marketing, research and general expenses. Year-to-date effective tax rate was 23.1 percent, compared to 18.8 percent in the prior year. On an adjusted basis, the effective rate was 20.8 percent compared to 21.8 percent in the prior year. The first half of 2025 benefited from the resolution of certain tax matters. Net income of equity companies was $91 million compared to $124 million in the prior year driven primarily by unfavorable currency impacts. Income from discontinued operations, net of income taxes was $171 million compared to $191 million in the prior year driven primarily by pre-tax separation costs of $33 million, partially offset by a reduction in depreciation and amortization expense of $10 million due to discontinued operations reporting requirements. Through the first half of the year, diluted EPS attributable to Kimberly-Clark were $3.23 on a reported basis, compared to $3.52 last year. Excluding the impacts of the 2024 Transformation Initiative and IFP related separation charges, year-to-date adjusted EPS attributable to Kimberly-Clark were $3.85 compared to $3.97 last year down 3.0 percent including a currency translation headwind of 280 basis points. Business Segment Results(Unaudited) Q2 change vs year ago (%)VolumeMix/OtherNet PriceDivestituresand BusinessExits(c)Currency TranslationTotal(a)Organic(b) Consolidated5.0(0.1)(1.2)(4.4)(1.0)(1.6)3.9 NA5.2(0.7)(0.4)(5.7)(0.2)(1.9)4.3 IPC4.81.2(2.7)(0.3)(2.6)0.43.3 YTD change vs year ago (%)VolumeMix/OtherNet PriceDivestituresandBusinessExits(c)CurrencyTranslationTotal(a)Organic(b) Consolidated2.3—(1.2)(3.4)(1.7)(4.0)1.2 NA2.6(0.3)(0.5)(4.3)(0.3)(2.9)1.8 IPC2.00.7(2.6)(0.3)(4.3)(4.5)0.1 (a) Total may not sum across due to rounding. (b) Represents the change in net sales excluding the impacts of currency translation and divestitures and business exits. Organic Sales Growth is a non-GAAP financial measure. See "Summary of Non-GAAP Financial Measures" below for reconciliations of our GAAP to non-GAAP measures. (c) Impact of the sale of the PPE business, the exit of the Company's private label diaper business in the United States, and other exited businesses and markets in conjunction with the 2024 Transformation Initiative. North America ("NA") North America net sales of $2.7 billion decreased 1.9 percent in the quarter, driven by a combination of the PPE divestiture and the exit of the company's private label diaper business in the US, partially offset by organic sales growth. Organic sales increased 4.3 percent primarily driven by strong volume growth of 5.2 percent reflecting the strength of innovations and activations in the quarter. Personal Care categories grew weighted share by 60 basis points in the quarter. Year-to-date organic sales increased 1.8 percent with volume led growth at 2.6 percent partially offset by declines in price and mix. Operating profit of $655 million decreased 4.0 percent driven primarily by a 500 basis point headwind from divestiture and business exits. Beyond that, results reflected volume led gains and strong productivity savings offset by planned investments in the price:value tiers of the portfolio and recent tariffs. Year-to-date operating profit was down 1.3 percent driven primarily by 390 basis point headwind from divestiture and business exits. International Personal Care ("IPC") IPC net sales of $1.4 billion increased 0.4 percent as organic sales growth of 3.3 percent, driven by strong volume led growth of 4.8 percent as we continually improve our value propositions across the portfolio, and improved portfolio mix 1.2 percent, partially offset by unfavorable currency translation. Year-to-date organic sales were broadly in line with year ago. Operating profit of $182 million decreased 12.9 percent driven by investments in price-value tiers resulting in negative pricing net of cost inflation partially offset by volume led gains and productivity savings. Year-to-date operating profit was down 16.7 percent. Cash Flow and Balance Sheet Year-to-date cash provided by operations (inclusive of discontinued operations) was $1.1 billion compared to $1.5 billion last year driven mainly by the decline in operating profit. Year-to-date capital spending was $401 million compared to $352 million last year. The company returned $944 million to shareholders through dividends and repurchases of common stock. Total debt was $7.2 billion as of June 30, 2025, down from $7.4 billion as of December 31, 2024. 2025 Outlook The company adjusted its full-year outlook to be consistent with the reporting of the IFP business as discontinued operations. Its outlook for Net Sales, Organic Sales Growth and Adjusted Operating Profit growth now reflect the results of the remaining two segments, North America and IPC, as well as its overhead structure excluding the IFP business. Its outlook for Adjusted Earnings per Share Attributable to Kimberly-Clark and Adjusted Free Cash Flow will continue to include the IFP business until the close of the joint venture transaction with Suzano, anticipated to occur mid-year 2026. Consistent with the Company's long term growth algorithm, 2025 Organic Sales Growth is expected to outpace the weighted average growth in the categories and countries it competes, which are currently growing at approximately two percent. Reported Net Sales are forecast to reflect a negative impact of approximately 100 basis points from currency translation, as well as a negative 290 basis point impact from a combination of the PPE divestiture and the exit of the company's private label diaper business in the US. The company expects its 2025 Adjusted Operating Profit to grow at a low-to-mid single digit rate on a constant-currency basis versus the prior year. This outlook includes a negative 380 basis point impact from a combination of its PPE divestiture and the exit of the company's private label diaper business in the US. Operating Profit growth is also expected to be negatively impacted by approximately 100 basis points from currency translation. Adjusted Earnings per Share Attributable to Kimberly-Clark are expected to grow at a low-to-mid single digit rate on a constant-currency basis including a negative 320 basis point impact from a combination of its PPE divestiture and the exit of the company's private label diaper business in the US, as well as a negative 100 basis point impact from items below operating profit including higher net interest expense, a higher effective adjusted tax rate, partially offset by lower shares outstanding. This outlook also includes a favorable impact of approximately 200 basis points, or $0.16 per diluted share, from the cessation of depreciation and amortization expense for assets held for sale, reflected in earnings from discontinued operations. Earnings Per Share are expected to be negatively impacted by approximately 150 basis points from currency translation, including the impact on income from equity interests. Adjusted Free Cash Flow is expected to be approximately $2 billion in 2025. This outlook reflects assumptions subject to change given the macro environment. Supplemental Materials and Live Webcast Supplemental materials will be available at approximately 6:35 a.m. Eastern Daylight Time in the Investor Relations section of the Kimberly-Clark website. The company will host a live Q&A session with investors and analysts on August 1, 2025, at 8:00 a.m. Eastern Daylight Time. The supplemental materials and Kimberly-Clark's Q&A session can be accessed at the Kimberly-Clark website. A replay of the webcast will be available following the event through the same website. About Kimberly-Clark Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website. Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy statements and other SEC filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made available free of charge on the company's website on the same day they are filed with the SEC. To view these filings, visit the Investors section of the company's website. Forward Looking Statements Certain matters contained in this press release concerning the business outlook, including raw material, energy and other input costs, our plans and expectations regarding the pending IFP joint venture transaction with Suzano ("IFP Transaction"), the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, growth initiatives, innovations, marketing and other spending, net sales, anticipated currency rates and exchange risks, including the impact in Argentina and Türkiye, effective tax rate, contingencies and anticipated transactions of Kimberly-Clark, including dividends, share repurchases and pension contributions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based upon management's expectations and beliefs concerning future events impacting Kimberly-Clark. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them. The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including risks and uncertainties around the pending IFP Transaction (including risks related to delays or failure to complete the proposed transaction, the incurrence of significant transaction and separation costs, adverse market reactions, regulatory or legal challenges, and operational disruptions), risks that we are not able to realize the anticipated benefits of the 2024 Transformation Initiative (including risks related to disruptions to our business or operations or related to any delays in implementation), war in Ukraine (including the related responses of consumers, customers, and suppliers and sanctions issued by the U.S., the European Union, Russia or other countries), government trade or similar regulatory actions (including current and potential trade and tariff actions affecting the countries where we operate and the resulting negative impacts on our supply chain, commodity costs, and consumer spending), pandemics, epidemics, fluctuations in foreign currency exchange rates, the prices and availability of our raw materials, supply chain disruptions, disruptions in the capital and credit markets, counterparty defaults (including customers, suppliers and financial institutions with which we do business), failure to realize the expected benefits or synergies from our acquisition and disposition activity, impairment of goodwill and intangible assets and our projections of operating results and other factors that may affect our impairment testing, changes in customer preferences, severe weather conditions, regional instabilities and hostilities (including the war in Israel), potential competitive pressures on selling prices for our products, energy costs, general economic and political conditions globally and in the markets in which we do business, as well as our ability to maintain key customer relationships, could affect the realization of these estimates. The factors described under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made by us or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results. KIMBERLY-CLARK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Millions, except per share amounts) (Unaudited) Three Months Ended June 3020252024Change Net Sales $ 4,163$ 4,231(1.6 %) Cost of products sold 2,7072,6372.7 % Gross Profit 1,4561,594(8.7 %) Marketing, research and general expenses 863967(10.8 %) Other (income) and expense, net 188(98.9 %) Operating Profit 5925399.8 % Nonoperating expense (17)(15)13.3 % Interest income 59(44.4 %) Interest expense (67)(72)(6.9 %) Income from Continuing Operations Before Income Taxes andEquity Interests 51346111.3 % Provision for income taxes (116)(60)93.3 % Income from Continuing Operations Before Equity Interests 397401(1.0 %) Share of net income of equity companies 4763(25.4 %) Income from Continuing Operations 444464(4.3 %) Income from Discontinued Operations, Net of Income Taxes 6889(23.6 %) Net Income 512553(7.4 %) Net income attributable to noncontrolling interests (3)(9)(66.7 %) Net Income Attributable to Kimberly-Clark Corporation $ 509$ 544(6.4 %) Per Share BasisNet Income Attributable to Kimberly-Clark CorporationBasic:Continuing operations $ 1.33$ 1.35(1.5 %) Discontinued operations 0.200.26(23.1 %) Basic Earnings per Share $ 1.53$ 1.61(5.0 %) Diluted:Continuing operations $ 1.33$ 1.35(1.5 %) Discontinued operations 0.200.26(23.1 %) Diluted Earnings per Share $ 1.53$ 1.61(5.0 %) Cash Dividends Declared $ 1.26$ 1.223.3 % Common Shares Outstanding June 3020252024 Outstanding shares as of 331.9337.0 Average diluted shares for three months ended 333.3338.0 KIMBERLY-CLARK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Millions, except per share amounts) (Unaudited) Six Months Ended June 3020252024Change Net Sales $ 8,217$ 8,557(4.0 %) Cost of products sold 5,2525,277(0.5 %) Gross Profit 2,9653,280(9.6 %) Marketing, research and general expenses 1,7181,918(10.4 %) Other (income) and expense, net 24108(77.8 %) Operating Profit 1,2231,254(2.5 %) Nonoperating expense (34)(30)13.3 % Interest income 1219(36.8 %) Interest expense (131)(139)(5.8 %) Income from Continuing Operations Before Income Taxes andEquity Interests 1,0701,104(3.1 %) Provision for income taxes (247)(208)18.8 % Income from Continuing Operations Before Equity Interests 823896(8.1 %) Share of net income of equity companies 91124(26.6 %) Income from Continuing Operations 9141,020(10.4 %) Income from Discontinued Operations, Net of Income Taxes 171191(10.5 %) Net Income 1,0851,211(10.4 %) Net income attributable to noncontrolling interests (9)(20)(55.0 %) Net Income Attributable to Kimberly-Clark Corporation $ 1,076$ 1,191(9.7 %) Per Share BasisNet Income Attributable to Kimberly-Clark CorporationBasic:Continuing operations $ 2.73$ 2.97(8.1 %) Discontinued operations 0.510.56(8.9 %) Basic Earnings per Share $ 3.24$ 3.53(8.2 %) Diluted:Continuing operations $ 2.72$ 2.96(8.1 %) Discontinued operations 0.510.56(8.9 %) Diluted Earnings per Share $ 3.23$ 3.52(8.2 %) Cash Dividends Declared $ 2.52$ 2.443.3 % Common Shares Outstanding June 3020252024 Average diluted shares for six months ended 333.3338.2 KIMBERLY-CLARK CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Millions) (Unaudited) June 30, 2025December 31, 2024 ASSETS Current Assets Cash and cash equivalents$ 634$ 1,010 Accounts receivable, net2,0071,728 Inventories1,5581,452 Other current assets572694 Current assets of discontinued operations786696 Total Current Assets5,5575,580 Property, Plant and Equipment, Net6,3176,284 Investments in Equity Companies359314 Goodwill1,8361,796 Other Intangible Assets, Net8180 Other Assets1,001984 Non-current Assets of Discontinued Operations1,6201,508 TOTAL ASSETS$ 16,771$ 16,546 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Debt payable within one year$ 771$ 564 Trade accounts payable3,2533,264 Accrued expenses and other current liabilities2,0192,091 Dividends payable415402 Current liabilities of discontinued operations713683 Total Current Liabilities7,1717,004 Long-Term Debt6,4706,854 Non-current Employee Benefits619628 Deferred Income Taxes243300 Other Liabilities680609 Non-current Liabilities of Discontinued Operations148139 Redeemable Preferred Securities of Subsidiaries3737 Stockholders' Equity Kimberly-Clark Corporation1,271840 Noncontrolling Interests132135 Total Stockholders' Equity1,403975 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 16,771$ 16,546 KIMBERLY-CLARK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions) (Unaudited) Six Months Ended June 30 20252024 Operating Activities Net income$ 1,085$ 1,211 Depreciation and amortization440373 Asset impairments—5 Stock-based compensation7371 Deferred income taxes(30)(79) Net (gains) losses on asset and business dispositions3683 Equity companies' earnings (in excess of) less than dividends paid(50)(82) Operating working capital(471)(135) Postretirement benefits93 Other59 Cash Provided by Operations1,0971,459 Investing Activities Capital spending(401)(352) Proceeds from asset and business dispositions1214 Investments in time deposits(227)(242) Maturities of time deposits282235 Other22(31) Cash Used for Investing(312)(376) Financing Activities Cash dividends paid(824)(809) Change in short-term debt517 Debt repayments(250)— Proceeds from exercise of stock options3641 Repurchases of common stock(120)(156) Cash dividends paid to noncontrolling interests(18)(19) Other(58)(62) Cash Used for Financing(1,183)(998) Effect of Exchange Rate Changes on Cash and Cash Equivalents34(15) Change in Cash and Cash Equivalents(364)70 Cash and cash equivalents from continuing operations - beginning of period1,0101,075 Cash and cash equivalents from discontinued operations - beginning of period (a)1118 Cash and Cash Equivalents - Beginning of Period1,0211,093 Cash and cash equivalents from continuing operations - end of period6341,149 Cash and cash equivalents from discontinued operations - end of period(a)2314 Cash and Cash Equivalents - End of Period$ 657$ 1,163 (a) Included in Current assets of discontinued operations. KIMBERLY-CLARK CORPORATION BUSINESS SEGMENT RESULTS (Millions) (Unaudited) Three Months Ended June 30Six Months Ended June 30 20252024Change20252024Change Net Sales NA$ 2,730$ 2,783(1.9 %)$ 5,398$ 5,559(2.9 %) IPC1,4331,4270.4 %2,8192,953(4.5 %) Segment Net Sales(a)4,1634,210(1.1 %)8,2178,512(3.5 %) Corporate & Other(b)—21N.M.—45N.M. Total Net Sales$ 4,163$ 4,231(1.6 %)$ 8,217$ 8,557(4.0 %) Operating Profit NA$ 655$ 682(4.0 %)$ 1,333$ 1,351(1.3 %) IPC182209(12.9 %)383460(16.7 %) Segment Operating Profit(a)837891(6.1 %)1,7161,811(5.2 %) Corporate & Other(b)(245)(352)(30.4 %)(493)(557)(11.5 %) Total Operating Profit$ 592$ 5399.8 %$ 1,223$ 1,254(2.5 %) (a) Segment Net Sales and Segment Operating Profit are non-GAAP financial measures as they exclude certain results included within Corporate & Other, as discussed below. Refer to "Summary of Non-GAAP Financial Measures" below for further discussion of how we utilize non-GAAP financial measures. As shown above, we have included a reconciliation to Total Net Sales and Total Operating Profit, as determined in accordance with GAAP. (b) Corporate & Other includes income and expense not associated with the ongoing operations of the segments, including certain operations of the former IFP segment that were divested prior to the IFP Transaction and costs previously allocated to the former IFP segment that aren't reported as discontinued operations. N.M. - Not Meaningful SUMMARY OF NON-GAAP FINANCIAL MEASURESThe following provides the reconciliation of the non-GAAP financial measures provided in this press release to the most closely related GAAP measure. These measures include: Organic Sales Growth, Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Earnings per Share from Continuing Operations, Adjusted Earnings per Share Attributable to Kimberly-Clark, and Adjusted Effective Tax Rate. Unless specifically stated, all discussions regarding non-GAAP financial measures reflect results from our continuing operations for all periods presented. Organic Sales Growth is defined as the change in Net Sales, as determined in accordance with U.S. GAAP, excluding the impacts of currency translation and divestitures and business exits. Adjusted Gross and Operating Profit, Adjusted Earnings per Share from Continuing Operations, Adjusted Earnings per Share Attributable to Kimberly-Clark and Adjusted Effective Tax Rate are defined as Gross Profit, Operating Profit, Diluted Earnings per Share from Continuing Operations, Diluted Earnings per Share Attributable to Kimberly-Clark and Effective Tax Rate, respectively, as determined in accordance with U.S. GAAP, excluding the impacts of certain items that management believes do not reflect our underlying operations, and which are discussed in further detail below. The income tax effect of these non-GAAP items on the Company's Adjusted Earnings per Share from Continuing Operations is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the Company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income from Continuing Operations Before Income Taxes and Equity Interests and Provision for income taxes. We use these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that we do not believe reflect our underlying and ongoing operations. We believe that presenting these non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliation to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with our Unaudited Interim Condensed Consolidated Financial Statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. We compensate for these limitations by using these non-GAAP financial measures as a supplement to the GAAP measures and by providing reconciliations of the non-GAAP and comparable GAAP financial measures. Certain non-GAAP financial measures referenced in this press release are presented on a forward-looking basis. Kimberly-Clark does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. Please note that these items could be material to Kimberly-Clark's results calculated in accordance with GAAP. The non-GAAP financial measures exclude the following items for the relevant time periods: 2024 Transformation Initiative - We initiated this transformation to create a more agile and focused operating structure that will accelerate our proprietary pipeline of innovation in right-to-win spaces and improve our growth trajectory, profitability, and returns on investment. IFP Repatriated Earnings – In connection with the IFP Transaction, we recognized a deferred tax liability for certain permanently reinvested earnings from the IFP Business that are expected to be repatriated prior to the close of the transaction. IFP Separation Costs - Costs incurred in connection with the IFP Transaction related to external advisory, legal, accounting, contractor and other incremental costs. IFP Tax Basis Adjustment - In connection with the IFP Transaction, we recognized a deferred tax liability on the difference between our book and tax basis for certain of our investments in subsidiaries reported as discontinued operations. The following tables provide a reconciliation of Organic Sales Growth from continuing operations: Three Months Ended June 30, 2025 Percent change vs. the prior year period NAIPCTotal Net Sales Growth(1.9)0.4(1.6) Currency Translation0.22.61.0 Divestitures and Business Exits5.70.34.4 Organic Sales Growth(a)4.33.33.9 Six Months Ended June 30, 2025 Percent change vs. the prior year period NAIPCTotal Net Sales Growth(2.9)(4.5)(4.0) Currency Translation0.34.31.7 Divestitures and Business Exits4.30.33.4 Organic Sales Growth(a)1.80.11.2 (a) Table may not foot due to rounding. The following table provides a reconciliation of Adjusted Gross Profit from continuing operations: Three Months Ended June 30Six Months Ended June 30 2025202420252024 Gross Profit$ 1,456$ 1,594$ 2,965$ 3,280 2024 Transformation Initiative824513545 Adjusted Gross Profit$ 1,538$ 1,639$ 3,100$ 3,325 The following table provides a reconciliation of Adjusted Operating Profit from continuing operations: Three Months Ended June 30Six Months Ended June 30 2025202420252024 Operating Profit$ 592$ 539$ 1,223$ 1,254 2024 Transformation Initiative121190196235 Adjusted Operating Profit$ 713$ 729$ 1,419$ 1,489 The following table provides a reconciliation of Adjusted Earnings per Share from continuing operations: Three Months Ended June 30Six Months Ended June 30 2025202420252024 Diluted Earnings per Share from Continuing Operations$ 1.33$ 1.35$ 2.72$ 2.96 2024 Transformation Initiative0.270.350.500.45 IFP Repatriated Earnings0.03—0.03— Adjusted Earnings per Share from Continuing Operations(a)$ 1.63$ 1.70$ 3.25$ 3.41 (a) The non-GAAP adjustments included above are presented net of tax. The income tax effect of these non-GAAP items is calculatedbased upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. Refer to the Adjusted Effective Tax Rate reconciliation below for the tax effect of these adjustments on the Company's reported Provision for income taxes. The following table provides a reconciliation of Adjusted Earnings per Share Attributable to Kimberly-Clark: Three Months Ended June 30Six Months Ended June 30 2025202420252024 Diluted Earnings per Share Attributable to Kimberly-Clark$ 1.53$ 1.61$ 3.23$ 3.52 2024 Transformation Initiative0.270.350.500.45 IFP Separation Costs0.07—0.07— IFP Repatriated Earnings0.03—0.03— IFP Tax Basis Adjustment0.02—0.02— Adjusted Earnings per Share Attributable to Kimberly-Clark$ 1.92$ 1.96$ 3.85$ 3.97 The following tables provide a reconciliation of the continuing operations Adjusted Effective Tax Rate: Three Months Ended June 30 20252024 Income from Continuing OperationsBefore IncomeTaxes and EquityInterestsProvision for Income TaxesIncome from Continuing Operations Before IncomeTaxes and Equity InterestsProvision for Income Taxes As Reported$ 513$ (116)$ 461$ (60) 2024 Transformation Initiative122(27)190(73) IFP Repatriated Earnings—10—— As Adjusted$ 635$ (133)$ 651$ (133) Effective Tax Rate As Reported22.6 %13.0 % As Adjusted20.9 %20.4 % Six Months Ended June 30 20252024 Income fromContinuing Operations Before IncomeTaxes andEquity InterestsProvision forIncome TaxesIncome fromContinuing Operations Before IncomeTaxes and EquityInterestsProvision forIncome Taxes As Reported$ 1,070$ (247)$ 1,104$ (208) 2024 Transformation Initiative199(27)235(84) IFP Repatriated Earnings—10—— As Adjusted$ 1,269$ (264)$ 1,339$ (292) Effective Tax Rate As Reported23.1 %18.8 % As Adjusted20.8 %21.8 % [KMB-F] Logo - View original content: SOURCE Kimberly-Clark Corporation 登入存取你的投資組合
Globe and Mail
31-07-2025
- Business
- Globe and Mail
Is Coca-Cola's Diversification Into Energy Drinks Gaining Traction?
The Coca-Cola Company 's KO push into the energy drink category is starting to yield results, although it is a gradual build. While the second-quarter 2025 earnings call did not shine the spotlight on energy drinks directly, the company's emphasis on its diversified portfolio, including BODYARMOR and Powerade, signals strategic momentum. Both brands registered volume growth in the second quarter, contributing to Coca-Cola's broader objective of gaining value share for the 17th consecutive quarter. This reflects consumer receptiveness to Coca-Cola's expanding non-soda offerings. The company's innovation agenda also plays a key role. The latest launches, such as Sprite+Tea, though not energy drinks, highlight Coca-Cola's agility in crafting hybrid beverages that tap into evolving tastes for functionality and flavor. This strategy complements its efforts in premium stills and sports hydration — segments that overlap with consumer needs — in the energy category. The company's all-weather approach and accelerated marketing execution have further enhanced visibility and consumer traction for its broader beverage lineup. While Coca-Cola has not yet disrupted the energy drink market on the scale of leaders like Monster Beverage Corporation MNST or Red Bull, its existing brand power, distribution strength and innovation pipeline suggest it is in for the long game. If current execution trends continue, Coca-Cola's diversification into energy beverages may shift from incremental gain to a more commanding presence in the next few quarters. The Rivalry in Energy Drinks Strengthens: Can PEP & MNST Keep Up? As Coca-Cola steadily expands its footprint in the energy drink market, all eyes are on PepsiCo Inc. PEP and Monster Beverage to see if they can keep pace in this increasingly competitive and fast-evolving segment. PepsiCo is intensifying its energy drink strategy with bold moves like acquiring Poppi, a fast-growing prebiotic soda brand, and expanding Sting's global visibility through a multi-year Formula 1 partnership. Gatorade remains central to its sports hydration portfolio, while Propel drives strong growth in functional drinks. With continued investments in zero-sugar, performance beverages and away-from-home channels, PepsiCo is positioning itself for sustained growth in the fast-evolving energy and wellness drink segment. Monster Beverage continues to dominate the energy drink space with a diverse portfolio that includes Monster Energy, Reign Total Body Fuel, Reign Storm, Bang Energy, Predator and Fury. In first-quarter 2025, the company expanded globally with product launches like Monster Ultra Blue Hawaiian and continues to lead in market share across several countries. Monster is also ramping up innovation and expanding affordable brands internationally, positioning itself for global growth and consumer reach. The Zacks Rundown for Coca-Cola KO shares have risen 10.4% year to date compared with the industry 's growth of 5.3%. From a valuation standpoint, Coca-Cola trades at a forward price-to-earnings ratio of 22.04X, significantly higher than the industry's 17.64X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for KO's 2025 and 2026 earnings implies year-over-year growth of 3.1% and 8.3%, respectively. Earnings estimates for 2025 have been unchanged in the past 30 days. Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report
