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, PLANT AND EQUIPMENT 15,649 15,513
DERIVATIVE FINANCIAL INSTRUMENTS 4,024 1,700
INTANGIBLE ASSETS AND OTHERS 2,353 1,705
TOTAL $39,920 $36,078LIABILITIES AND EQUITY
CURRENT PORTION OF LONGTERM DEBT $ 2,500 $ 2,300
TRADE PAYABLES 4,268 3,409
EMPLOYEE BENEFITS 1,226 1,068
DIVIDENDS PAYABLE 2,380 27
PROVISIONS AND OTHER LIABILITIES 1,756 1,759
CURRENT DERIVATIVE FINANCIAL INSTRUMENTS 31 -
CURRENT INCOME TAX PAYABLE 352 557
LONG TERM DEBT 19,999 17,097
NON-CURRENT DERIVATIVE FINANCIAL INSTRUMENTS - 101
DEFERRED TAXES 1,445 1,545
OTHER LIABILITIES 228 211EQUITY 5,735 8,004
TOTAL $39,920 $36,078CASH FLOW
MILLION PESOSNINE MONTHS ENDED SEPTEMBER2016 2015PROFIT BEFORE TAX
$5,234 $4,525
DEPRECIATION 1,233 1,269OTHER 810 632
CASH USED IN OPERATIONS (3,819) (1,838)NET CASH FLOW FROM OPERATING
ACTIVITIES 3,458 4,588
CAPITAL EXPENDITURES AND ACQUISITIONS (2,030) (774)REPURCHASE OF
SHARES (300) (114)
DEBT ISSUANCE 3,567 3,688DIVIDENDS PAID (2,351) (2,292)
PAYMENT OF BORROWINGS, NET INTEREST & OTHER (1,467) (576)
NET INCREASE IN CASH 877 4,520
EFFECT OF EXCHANGE RATE CHANGES ON CASH 128 210
CASHAND EQUIVALENTS AT THE BEGINNING OF PERIOD 7,934 5,050
CASH AND EQUIVALENTS AT THE END OF PERIOD 8,939 9,780
CONFERENCE CALL INFORMATION
THE 3Q'16 CONFERENCE CALL WILL BE HELD ON FRIDAY, OCTOBER 21, 2016
AT 9:30 AM EASTERN TIME(8:30 AM CENTRAL TIME / MEXICO TIME). TO
PARTICIPATE IN THE CALL, PLEASE DIAL: US +1(888) 318-6429,
INTERNATIONAL +1(334) 323-7224; CONFERENCE ID: KIMBERLY.A REPLAY OF
THE CONFERENCE CALL WILL BE AVAILABLE THROUGH OCTOBER 28, 2016. TO
ACCESS THE REPLAY, PLEASE DIAL US +1(877) 919-4059, INTERNATIONAL
+1(334) 323-0140; CONFERENCE ID: 69238228
KIMBERLY-CLARK DE MXICOS.A.B. DE C.V. IS A MEXICAN COMPANY THAT
MANUFACTURES AND COMMERCIALIZES BRANDED CONSUMER PRODUCTS SUCH AS
DIAPERS, FEMININE PADS, BATH TISSUE, NAPKINS, FACIALTISSUE, PAPER
TOWELS AND WET WIPES. WE ARE MARKET LEADERS IN ALMOST ALL OF OUR
CATEGORIES WITH BRANDS SUCH AS HUGGIES, KLEEN-BEB, KLEENEX, PTALO,
COTTONELLE,DEPEND, KOTEX, EVENFLO AND ESCUDO.
INVESTOR RELATIONS CONTACT
AZUL ARGELLESTEL: (5255) 5282-7204
AZUL.ARGUELLES@KCC.COM