THIRD QUARTER 2016 RESULTS
20 Octubre 2016 - 3:09PM
BMV General Information
OCTOBER 20, 2016
KIMBERLY-CLARK DE MXICO, S.A.B. DE C.V.
THIRD QUARTER 2016RESULTS
HIGHLIGHTS:
- NET SALES ROSE 9.9% TO PS. $8.7 BILLION, DRIVEN BY POSITIVE
VOLUME AND BETTER PRICING & MIX
- OPERATING PROFIT WAS PS. $1.9 BILLION AND MARGIN EXPANDED 40
BASIS POINTS TO 22.2% REFLECTING HIGHER SALES, COST REDUCTIONS AND
OPERATING EFFICIENCIES, OFFSETTING FX PRESSURE- EBITDA OF PS. $2.4
BILLION
- CLOSE TO PS. $300 MILLION OF COST SAVINGS DURING THE QUARTER
- OBTAINED APPROVAL FOR THE ACQUISITION OF 4E; EXPECTED TO CLOSE
DURING 4Q'16QUARTERLY FINANCIAL RESULTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS)MILLION PESOS
3Q'16 3Q'15 CHANGENET SALES $8,719 $7,932 9.9%
GROSS PROFIT 3,345 3,040 10.0%OPERATING PROFIT 1,939 1,730
12.1%
NET INCOME 1,206 1,037 16.2%EBITDA 2,351 2,153 9.2%
NET SALES WERE 9.9% HIGHER THAN PREVIOUS YEAR. A PRICE ANDMIX
CONTRIBUTION OF 6.5% WAS THE RESULT OF POSITIVE MIX AND TARGETED
PRICING INITIATIVES. VOLUME GROWTH WAS 3.4%, SUPPORTED BY A GOOD
CONSUMPTION ENVIRONMENT.CONSUMER PRODUCT REVENUES INCREASED 10.4%,
PROFESSIONAL 4.8% (AWAY FROM HOME, WHICH EXCLUDES TISSUE PARENT
ROLLS SALES, GREW 12.0%) AND EXPORTS 15.3%. GROSS PROFIT INCREASED
10.0% AND THE MARGIN WAS 38.4%. THIS REFLECTS SEVERAL POSITIVE
FACTORS THAT MITIGATED THE 15% PESO DEVALUATION YEAR OVER YEARAND
6% SEQUENTIALLY: I) POSITIVE VOLUME PERFORMANCE; II) HIGHER PRICES
AND BETTER MIX; III) LOWER DOLLAR COSTS IN CERTAIN RAW MATERIALS
SUCH AS VIRGIN FIBERS AND SUPER ABSORBENT MATERIALS; AND IV) CLOSE
TO PS. $300 MILLION OF SAVINGS FROM OUR COST REDUCTION PROGRAM.
OPERATING EXPENSES AS A PERCENTAGE OF SALES WERE 40 BASIS POINTS
LOWER, AT 16.1%, AS WE CONTINUE TO LEVERAGE OUR LEAN OPERATIONS
WHILE ALSO INVESTING EFFECTIVELYBEHIND OUR BRANDS.
OPERATING INCOME GREW 12.1%, WHILE MARGIN WAS 22.2%. THIS REFLECTS
THE GOOD PERFORMANCEAT THE GROSS PROFIT LEVEL AND A MORE EFFICIENT
SG&A STRUCTURE. COST OF FINANCING WAS PS. $181 MILLION IN THE
THIRD QUARTER, COMPARED TO PS. $228 MILLION IN THE SAME PERIOD OF
LAST YEAR, REFLECTING THAT HIGHER INTEREST EXPENSE WAS PARTLY
COMPENSATED BY HIGHER INTEREST INCOME. FOREIGN EXCHANGE GAIN IN THE
PERIOD WAS PS. $47 MILLION COMPARED TO A EXCHANGE LOSS OF PS. $7
MILLION IN THE SAME PERIOD OF LAST YEAR.
NET INCOME INCREASED16.2% AND EARNINGS PER SHARE FOR THE QUARTER
WERE $0.39. EBITDA ROSE 9.2% TO PS. $2.4 BILLION IN THE QUARTER,
AND THE MARGIN DECREASED 10 BASIS POINTS TO 27.0%.DURING THE LAST
TWELVE MONTHS, WE INVESTED PS. $2,876 MILLION (PS. $2,575 MILLION
IN CAPEX AND ACQUISITIONSAND PS. $301 MILLION IN OUR SHARE BUY-BACK
PROGRAM) AND PAID PS. $4,641 MILLION IN DIVIDENDS TO OUR
SHAREHOLDERS.
IN DOLLARS, UNDER US GAAP, NET SALES DECREASED 4% IN THE QUARTER,
OPERATING PROFIT DECREASED 4% AND NET INCOME DECREASED 2%.
AS OF SEPTEMBER 30, THE COMPANY HELDPS. $8.9 BILLION IN CASH AND
EQUIVALENTS.TOTAL NET DEBT AS OF SEPTEMBER 30, 2016 WAS PS. $9.5
BILLION, COMPARED TO PS. $8.3 BILLION ON DECEMBER 2015.
LONG-TERMDEBT COMPRISED 89% OF TOTAL DEBT AND ALL DEBT WAS
DENOMINATED IN MEXICAN PESOS.
DURING THE QUARTER WE OBTAINED REGULATORY APPROVAL TO ACQUIRE 50%
OF 4E. THE TRANSACTION IS EXPECTED TO CLOSE IN THE FOURTH QUARTER
OF 2016.
SHARE BUYBACK PROGRAM YEAR TO DATE2016
2015SHARES REPURCHASED 7,474,327 3,529,473YTD FINANCIAL RESULTS
MILLION PESOS9M'16 9M'15 CHANGE
NET SALES $26,279 $23,723 10.8%GROSS PROFIT 10,234 9,091 12.6%
OPERATING PROFIT 6,044 5,157 17.2%NET INCOME 3,601 3,121 15.4%
EBITDA 7,277 6,426 13.2%FINANCIAL POSITION
MILLION PESOSAS OF SEPTEMBER
2016 2015
ASSETS
CASH AND CASH EQUIVALENTS $ 8,939 $ 9,780
TRADE AND OTHER RECEIVABLES 5,966 5,087
INVENTORIES 2,989 2,293
PROPERTY, P