FOURTH QUARTER AND FULL YEAR 2016 RESULTS.
19 Enero 2017 - 03:09PM
BMV General Information
JANUARY 19, 2017
KIMBERLY-CLARK DE MXICO, S.A.B. DE C.V.
FOURTH QUARTER ANDFULL YEAR 2016 RESULTS
HIGHLIGHTS:- FULL YEAR 2016 SALES GREW 10.7%, EBITDA 9.3% AND NET
INCOME 10.6%
- EBITDA OF PS. $9.6 BILLION DURING THE YEAR WITH A 27.0%
MARGIN
- INVESTMENT IN CAPEX AND ACQUISITIONS TOTALED PS. $3.8 BILLION
- FOURTH QUARTER SALES GROWTH OF 10.6% DRIVEN BY HIGHER VOLUMES,
BETTER PRICES AND IMPROVED MIX
- FX PRESSURES IMPACTED COSTS REDUCING OPERATING PROFIT AND NET
INCOME BY 0.4% AND 1.5% RESPECTIVELY IN THE FOURTH QUARTER
QUARTERLY FINANCIAL RESULTSPREPARED IN ACCORDANCE WITH
INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)MILLION
PESOS4Q'16 4Q'15 CHANGE
NET SALES $9,381 $8,483 10.6%GROSS PROFIT 3,551 3,337 6.4%
OPERATING PROFIT 1,974 1,981 (0.4)%NET INCOME 1,193 1,211
(1.5)%
EBITDA 2,342 2,377 (1.5)%DURING THE FOURTH QUARTER OF 2016, PRIVATE
CONSUMPTION CONTINUED ITS POSITIVE TREND AND KIMBERLY-CLARK DE
MXICO'S NET SALES WERE 10.6% HIGHER THAN THE PREVIOUS YEAR. THIS
WAS THE RESULT OF A PRICE AND MIX CONTRIBUTION OF 7.9%, AND 2.7%
VOLUME GROWTH. THE ADDITION OF ESCUDO AND 4E CONTRIBUTED TOVOLUME
GROWTH, BUT DOMESTIC AND EXPORT VOLUME OF TISSUE PARENT ROLLS
DECLINED AS MORE TISSUE WAS CONVERTED INTO OUR CONSUMER
BUSINESS.CONSUMER PRODUCT REVENUES INCREASED 13.4%, PROFESSIONAL
GREW 6.0% (AWAY FROM HOME, WHICH EXCLUDES TISSUE PARENT ROLLS
SALES, WAS UP 9.9%) AND EXPORTSDECREASED 19.4%.
ON THE COST SIDE, WE FACED A VERY CHALLENGING ENVIRONMENT SINCE THE
PESO DEVALUED MORE THAN 20% OVER THE YEAR AND 7% SEQUENTIALLY IN
THE FOURTH QUARTER. IN ADDITION TO THE STRONG EXCHANGE RATE IMPACT,
WE FACED NEGATIVE PRICE COMPARISONS IN RECYCLED FIBER AND ENERGY
AND SLIGHTLY POSITIVE ONES OR NEUTRAL IN PULP, POLYMERS AND SUPER
ABSORBENT MATERIALS, ALL IN DOLLARS.
THE NEGATIVE RAW MATERIAL COST IMPACT WAS MITIGATED BY HIGHER
SELLING PRICES AS WELL AS BY OUR COST REDUCTION PROGRAM WHICH
GENERATED $300 MILLION PESOS OF SAVINGS DURING THE QUARTER AND $1.1
BILLION PESOS FOR THE YEAR. AS A CONSEQUENCE, GROSS PROFIT
INCREASED 6.4% AND OUR MARGIN WAS 37.9%.
OPERATING EXPENSES AS A PERCENTAGE OF SALES WERE 80 BASIS POINTS
HIGHER, AT 16.8%. THIS REFLECTS THE INCREASE IN ADVERTISING AND
PROMOTION, HIGHER DISTRIBUTION EXPENSES ANDTHE CONSOLIDATION OF THE
EXPENSES OF 4E.
OPERATING INCOME DECREASED 0.4%, AND MARGIN WAS 21.0%.
COST OF FINANCING WASPS. $263 MILLION IN THE FOURTH QUARTER,
COMPARED TO PS. $234 MILLION IN THE SAME PERIOD OF LAST YEAR
REFLECTING HIGHER INTEREST EXPENSE FROM MORE DEBT AND INTEREST RATE
INCREASES. THIS WAS PARTIALLY COMPENSATED BY A PS. $22 MILLION
EXCHANGE RATE GAIN COMPARED TO PS. $2 MILLION EXCHANGE RATE LOSS IN
THE SAME PERIOD OFLAST YEAR.
NET INCOME DECREASED 1.5% AND EARNINGS PER SHARE FOR THE QUARTER
WERE $0.39. EBITDA DECREASED 1.5% TO PS. $2.3BILLION IN THE
QUARTER, AND THE MARGIN TO 25.0%.
IN DOLLARS, UNDER US GAAP, NET SALESDECREASED 6% IN THE QUARTER,
OPERATING PROFIT DECREASED 15% AND NET INCOME DECREASED 18%.
ANNUAL FINANCIAL RESULTSPREPARED IN ACCORDANCE WITH INTERNATIONAL
FINANCIAL REPORTING STANDARDS (IFRS)MILLION PESOS2016 2015
CHANGE
NET SALES $35,660 $32,206 10.7%GROSS PROFIT 13,785 12,428 10.9%
OPERATING PROFIT 8,018 7,138 12.3%NET INCOME 4,794 4,333 10.6%
EBITDA 9,619 8,803 9.3%FOR THE FULL YEAR REVENUES INCREASED 10.7%,
GROSS PROFIT 10.9%, OPERATING PROFIT 12.3%, EBITDA 9.3% AND NET
INCOME 10.6%. EARNINGS PER SHARE FOR THE YEAR WERE $1.55 AND
DESPITE THE STRONG COST PRESSURE WE WERE ABLE TO MAINTAIN
MARGINS.IN DOLLARS, UNDER US GAAP, NET SALES DECREASED 5% IN THE
YEAR, OPERATING PROFIT WAS LOWER 6% AND NET INCOME DECREASED
8%.DURING THE LAST TWELVE MONTHS, WE INVESTED PS. $4,129 MILLION
(PS. $3,831 MILLION IN CAPEX AND ACQUISITIONS AND PS. $298 MILLION
IN OUR SHARE BUY-BACKPROGRAM) AND PAID PS. $4,704 MILLION IN
DIVIDENDS TO OUR SHAREHOLDERS.
AS OF DECEMBER 31, THE COMPANY HELD PS. $7.5 BILLION IN CASH AND
EQUIVALENTS.TOTAL NET DEBT AS OF DECEMBER 31, 2016 WAS PS. $10.9
BILLION, COMPARED TO PS. $8.3 BILLION ON DECEMBER 2015. LONG-TERM
DEBT COMPRISED 89% OF TOTAL DEBT AND ALLDEBT WAS DENOMINATED IN
MEXICAN PESOS.
SHARE BUYBACK PROGRAM YEAR TO DATE
20162015
SHARES REPURCHASED 7,554,327 3,562,480CONFERENCE CALL
INFORMATION
THE 4Q'16 CONFERENCE CALL WILL BE HELD ON FRIDAY, JANUARY 20, 2017
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 JANUARY
27, 2017. TO ACCESS THE REPLAY, PLEASE DIAL US +1(877) 919-4059,
INTERNATIONAL +1(334) 323-0140; CONFERENCE ID: 68961970
KIMBERLY-CLARK DE MXICO S.A.B. DE C.V. IS A MEXICAN COMPANY THAT
MANUFACTURES AND COMMERCIALIZES BRANDED CONSUMER PRODUCTS SUCH AS
DIAPERS, FEMININE PADS, BATH TISSUE, NAPKINS, FACIAL TISSUE, PAPER
TOWELS, WET WIPES AND SOAP. WE ARE MARKET LEADERS IN ALMOST ALL OF
OURCATEGORIES WITH BRANDS SUCH AS HUGGIES, KLEEN-BEB, KLEENEX,
KIMLARK, PTALO, COTTONELLE, DEPEND, KOTEX, EVENFLO AND
ESCUDO.INVESTOR RELATIONS CONTACT
AZUL ARGELLESTEL: (5255) 5282-7204
AZUL.ARGUELLES@KCC.COM