SECOND QUARTER 2017 RESULTS
20 Julio 2017 - 3:10PM
BMV General Information
JULY 20, 2017KIMBERLY-CLARK DE MXICO, S.A.B. DE C.V.
SECOND QUARTER 2017RESULTS
HIGHLIGHTS:
- NET SALES ROSE 8.8% TO PS. $9.6 BILLION, A NEW QUARTERLY RECORD,
DRIVEN BY BETTER PRICING AND MIX, AS WELL AS POSITIVE VOLUME
- OPERATING PROFIT DECLINED BY 12.6%, MAINLY REFLECTING INCREASED
RAW MATERIALS AND ENERGY PRICE PRESSURE ON COSTS AND A STILL WEAKER
PESO YOY
- EBITDA OF PS. $2.2 BILLIONDOWN 10.4%; MARGIN OF 23.0%
- COST SAVINGS OF PS. $250 MILLION DURING THE QUARTER
QUARTERLY FINANCIAL RESULTSPREPARED IN ACCORDANCE WITH
INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)MILLION
PESOS2Q'17 2Q'16 CHANGE
NET SALES $9,606 $8,831 8.8%GROSS PROFIT 3,399 3,453 (1.6)%
OPERATING PROFIT 1,797 2,055 (12.6)%NET INCOME 1,013 1,285
(21.2)%
EBITDA 2,212 2,467 (10.4)%NET SALES WERE 8.8% HIGHER THAN PREVIOUS
YEAR. A PRICE AND MIX CONTRIBUTION OF 7.0% WAS THE RESULT OF
INITIATIVES IMPLEMENTED OVER THE LAST TWELVE MONTHS. VOLUME GROWTH
WAS 1.8%.
CONSUMER PRODUCT REVENUES INCREASED 8.8%, AWAY FROM HOME 19.5% AND
EXPORTS DECREASED 7.2% BECAUSE OF CONSTRAINED TISSUE CAPACITY.
GROSS PROFIT DECLINED 1.6% AND MARGIN WAS 35.4%. THIS REFLECTSTHE
SIGNIFICANT PRESSURE ON COSTS, PARTICULARLY FROM HIGHER RAW
MATERIALS AND ENERGY PRICES. WITH RESPECT TO THE FORMER, PRICES
WERE MUCH HIGHER FOR VIRGIN ANDRECYCLED FIBERS, POLYMERS AND
SUPERABSORBENT MATERIAL, ALL IN DOLLAR TERMS. THE PESO
DEPRECIATION, 6% ON AVERAGE DURING THE QUARTER, ALTHOUGH MORE
MODERATE THANTHE PRIOR QUARTER, ALSO HAD AN IMPACT. ON THE POSITIVE
SIDE, THE COST REDUCTION PROGRAM YIELDED PS. $250 MILLION.OPERATING
EXPENSES AS A PERCENTAGE OF SALES WERE 90 BASIS POINTS HIGHER, AT
16.7%, REFLECTING AN INCREASE IN DISTRIBUTION EXPENSES AND THE
CONSOLIDATION OF 4E. SG&A ALSO FACED A NEGATIVE COMPARISON AS
LAST YEAR AN INCOME FROM A PROPERTY SALE REDUCED SG&A.
OPERATING INCOME DECREASED 12.6%, AND MARGIN WAS 18.7%.
COST OF FINANCING WAS PS. $300 MILLION IN THE SECOND QUARTER
COMPARED TO PS. $176 MILLION IN THE SAME PERIOD OF LAST YEAR
REFLECTING A LOWER EXCHANGE RATE GAIN OF PS. $1 MILLION COMPARED TO
PS. $36 MILLION AND HIGHER INTEREST EXPENSE FROM INCREASED DEBT AND
SIGNIFICANTLY HIGHER INTEREST RATES.
NET INCOME DECREASED 21.2% AND EARNINGS PER SHARE FOR THE QUARTER
WERE $0.33. EBITDA DECREASED10.4% TO PS. $2.2 BILLION IN THE
QUARTER.
DURING THE LAST TWELVE MONTHS, THE INVESTMENTS HAVE BEEN PS. $3,759
MILLION (PS. $3,636 MILLION INCAPEX AND ACQUISITIONS AND PS. $123
MILLION IN OUR SHARE BUY-BACK PROGRAM) AND PS. $4,744 MILLION IN
DIVIDENDS TO OUR SHAREHOLDERS. AS OF JUNE 30, THE COMPANY HELD PS.
$6.3 BILLION IN CASH AND EQUIVALENTS. TOTAL NET DEBT AS OF JUNE 30,
2017 WAS PS. $13.0 BILLION, COMPARED TO PS. $10.9 BILLION ON
DECEMBER 2016. LONG-TERM DEBT COMPRISED 99% OF TOTAL DEBT AND ALL
DEBT IS DENOMINATED IN MEXICAN PESOS.
DURING THE QUARTER THE COMPANY ENTERED INTO A FIVE YEAR PS. $3,000
MILLION TERM LOAN AGREEMENT WITH BANCO NACIONAL DE MXICO, S.A. AND
PAID DOWN DEBT OF PS. $2,500 MILLION IN CERTIFICADOS
BURSATILES.
IN DOLLARS, UNDER US GAAP, NET SALES INCREASED 3% IN THE QUARTER,
OPERATING PROFIT DECREASED 17% AND NET INCOME DECREASED 26%.
SHARE BUYBACK PROGRAM YEAR TO DATE
2017
2016SHARES REPURCHASED 3,141,564 7,084,327YTD FINANCIAL RESULTS
MILLION PESOS6M'17 6M'16 CHANGE
NET SALES $19,136 $17,559 9.0%GROSS PROFIT 6,784 6,889 (1.5)%
OPERATING PROFIT 3,625 4,105 (11.7)%NET INCOME 2,108 2,395
(12.0)%
EBITDA 4,476 4,926 (9.1)%FINANCIAL POSITION
MILLION PESOSAS OF JUNE
2017 2016ASSETS
CASH AND CASH EQUIVALENTS $ 6,261 $ 9,589TRADE AND OTHER
RECEIVABLES 6,353 5,491
INVENTORIES 3,442 2,650
PROPERTY, PLANT AND EQUIPMENT 17,005 15,670
DERIVATIVE FINANCIAL INSTRUMENTS 2,858 2,997
INTANGIBLE ASSETS AND OTHERS 3,517 2,372
TOTAL $39,436 $ 38,769LIABILITIES AND EQUITY
BANK LOANS CURRENT $ 175 $
-
CURRENT PORTION OF LONG TERM DEBT - 2,500
TRADE PAYABLES 4,863 4,326
EMPLOYEE BENEFITS 885 989
DIVIDENDS PAYABLE 3,685 3,556
PROVISIONS AND OTHER LIABILITIES 1,903 1,776
CURRENT INCOME TAX PAYABLE143 411
LONG TERM DEBT 21,894 19,169
NON-CURRENT DERIVATIVE FINANCIAL INSTRUMENTS - 49
DEFERRED TAXES 1,333 1,385
OTHER LIABILITIES 432 221EQUITY 4,123 4,387
TOTAL $39,436 $ 38,769CASH FLOW
MILLION PESOSSIX MONTHS ENDED JUNE2017 2016PROFIT BEFORE TAX $3,049
$3,476
DEPRECIATION 851 821OTHER 576 629
CASH USED IN OPERATIONS (2,656) (2,418)NET CASH FLOW FROM OPERATING
ACTIVITIES 1,820 2,508
CAPITAL EXPENDITURES (1,460) (1,663)REPURCHASE OF SHARES (110)
(285)
BORROWINGS 3,163 3,567DIVIDENS PAID (1,218) (1,175)
PAYMENT OF BORROWINGS & NET INTEREST (3,074) (1,263)NET
(DECREASE) INCREASE IN CASH (879) 1,689
EFFECT OF EXCHANGE RATE CHANGES ON CASH (321) (33)CASH AND
EQUIVALENTS AT THE BEGINNING OF PERIOD 7,461 7,933
CASH AND EQUIVALENTS AT THE END OF PERIOD 6,261 9,589
CONFERENCE CALL INFORMATION
THE 2Q17 CONFERENCE CALL WILL BE HELD ON FRIDAY, JULY 21, 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 JULY 28, 2017. TO
ACCESS THE REPLAY, PLEASE DIAL US +1(877) 919-4059, INTERNATIONAL
+1(334) 323-0140; CONFERENCE ID: 98921357
KIMBERLY-CLARK DEMXICO 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
OUR CATEGORIES WITH BRANDS SUCH AS HUGGIES, KLEEN-BEB, KLEENEX,
KIMLARK, PTALO, COTTONELLE, DEPEND, KOTEX, EVENFLO AND ESCUDO.
INVESTOR RELATIONS CONTACTAZUL ARGELLES
TEL: (5255) 5282-7204AZUL.ARGUELLES@KCC.COM