Achieved net sales of $20.4 billion with better-than-anticipated
organic sales growth and stronger cost, margin and earnings
recovery in 2023
Company initiates financial outlook for 2024
reflecting continued momentum
DALLAS, Jan. 24,
2024 /PRNewswire/ --Kimberly-Clark Corporation (NYSE:
KMB) today reported fourth quarter and full-year 2023 results and
provided its 2024 outlook. Comparisons are made versus the prior
year period, unless otherwise noted.
"We had a solid finish to 2023, delivering strong organic growth
as well as cost and earnings recovery above our initial
expectations," said Kimberly-Clark Chairman and CEO Mike Hsu. "Our fourth quarter results
demonstrate topline momentum with more balanced growth across
volume, mix and price led by strong Personal Care results. I'm
proud of our team's outstanding execution, including enhancing the
value proposition of our global brands through consumer-centric
innovation and stronger, more integrated commercial
capabilities."
Hsu continued, "We enter 2024 having advanced the Company's
strategic foundation and financial position, and with confidence
this phase of cost recovery and supply chain stabilization is
largely behind us. Moving forward, we will continue to invest in
differentiating our brands and enhancing our capabilities while we
maintain a disciplined cost structure in our next phase of growth.
I'm confident we are positioned to accelerate and enhance the
performance of our business and create meaningful shareholder value
as we deliver our purpose of better care for a better world."
The company intends to hold an Investor Day in late March to
detail its strategic priorities and key initiatives underpinning
its vision for the future.
Quarter Highlights
- Delivered net sales of $5.0
billion, in line with prior year, with organic sales growth
of 3 percent.
- Gross margin was 34.9 percent, up 210 basis points versus the
prior year, driven by favorable net revenue realization and
productivity.
- Diluted earnings per share were $1.50; adjusted earnings per share were
$1.51, down 2 percent versus prior
year.
Fourth Quarter 2023 Results
Fourth quarter sales of $5.0
billion were in line with prior year, with organic
sales up 3 percent, driven by a 2 percent increase in price
from ongoing revenue growth management programs and a 1 percent
favorable product mix, with volumes in line with the prior year
period and volume trends improving for the fourth consecutive
quarter. Changes in foreign currency exchange rates reduced sales
by approximately 2 percent and the divestiture of the
tissue and K-C Professional business in Brazil reduced sales by approximately 1
percent.
In North America, organic
sales increased 3 percent over last year, including increases
of 5 percent in Personal Care and 3 percent in Consumer Tissue
that were partially offset by a 3 percent decrease in K-C
Professional.
Outside North America, organic
sales were up 5 percent in developing and emerging (D&E)
markets. Organic sales in developed markets (Australia, South
Korea and Western/Central
Europe) grew 1 percent versus prior year.
Gross margin improved by 210 basis points to 34.9 percent, with
higher net revenue realization, cost savings and favorable input
costs partially offset by unfavorable currency impacts and higher
other manufacturing costs. Gross profit grew 7 percent including
$50 million in FORCE (Focus on
Reducing Costs Everywhere) savings and $50
million in lower input costs.
Fourth quarter operating profit was $670 million compared
to $712 million last year, resulting
in an operating margin of 13.5 percent. Operating profit decreased
by 6 percent, driven by currency impacts of $170 million that reflected a combination
of currency translation, transactional currency costs, and
net monetary position losses in hyperinflationary markets.
Excluding this factor, an underlying increase in gross profit
dollars was partially offset by planned increases in marketing,
research and general expenses, coupled with higher incentive
compensation levels.
Net interest expense was $38
million, 45 percent lower than prior year driven by higher
interest income.
Fourth quarter effective tax rate was 25.2 percent, higher than
22.5 percent in the prior year. On an adjusted basis, the effective
rate in the fourth quarter was 25.2 percent, compared to 22.6
percent in the prior year period.
Net income of equity companies was $53 million compared to
$35 million last year driven by
Kimberly-Clark de Mexico.
Diluted EPS was in line with prior year at $1.50 on a reported basis. On an adjusted basis,
EPS decreased 2 percent to $1.51,
driven by impact of hyperinflationary economies and higher taxes
offset by gross profit expansion and net income of equity
companies.
Full-Year 2023 Results
In 2023, sales of $20.4 billion
increased 1 percent, with organic sales up 5 percent, driven by
approximately 6 percent increase in price from ongoing revenue
growth management programs and 1 percent from favorable product
mix, offset by a 2 percent decrease in volume, with sequential
improvements throughout the year. Changes in foreign currency
exchange rates reduced sales by 3 percent, and the exit of its
tissue and K-C Professional business in Brazil reduced sales by 1
percent.
Gross margin improved by 360 basis points to 34.4 percent and
adjusted gross margin improved by 370 basis points to 34.5 percent
reflecting higher net revenue realization as well as cost savings
from its FORCE program of $325
million more than offsetting higher input costs of
$65 million and higher other
manufacturing costs of $195
million.
Full-year operating profit was $2.34
billion in 2023 versus $2.68
billion in 2022. Results included non-cash impairment
charges on intangible assets that were partially offset by a
net benefit from the Brazil
divestiture in the second quarter 2023.
Full-year adjusted operating profit was $2.96 billion in 2023 versus $2.62 billion in 2022. The increases from organic
sales and benefits from productivity-led cost savings were
partially offset by higher other manufacturing costs, input costs,
and marketing, research and general expenses, and unfavorable
impact from foreign currency.
In 2023, diluted earnings per share were $5.21 compared to $5.72 last year. 2023 adjusted earnings per share
were $6.57 compared to $5.63 last year.
The company's 2023 results exceeded its initial outlook at the
start of its fiscal year and were consistent with its most recent
outlook as follows:
Metric
|
|
January 2023
Outlook
|
|
October 2023
Outlook
|
|
2023
Results
|
Organic sales
growth
|
|
2% -
4%
|
|
4% -
5%
|
|
5 %
|
FX
impact(a) on net sales
|
|
(2) %
|
|
~(3)%
|
|
(3) %
|
Acquisition/(divestiture) impact on net
sales
|
|
NA
|
|
~(1)%
|
|
(1) %
|
Net sales
growth
|
|
0% - 2%
|
|
1% - 2%
|
|
1 %
|
Adjusted
operating margin
|
|
NA
|
|
up 170
bps
|
|
+150
bps
|
Adjusted
operating profit
|
|
up mid-to-high
single
digits
|
|
NA
|
|
13 %
|
Input cost impact
on operating profit ($ million)
|
|
$(200) -
$(300)
|
|
~$(50)
|
|
$(65)
|
Other
manufacturing cost ($ million)
|
|
NA
|
|
~$(250)
|
|
$(195)
|
FORCE savings ($
million)
|
|
similar to prior
year
|
|
$300-$350
|
|
$325
|
FX
impact(b) on operating profit ($ million)
|
|
$(300) -
$(400)
|
|
~($450)
|
|
$(480)
|
Net interest
expense
|
|
NA
|
|
down high
single
|
|
down 15%
|
Adjusted
effective tax rate
|
|
23% - 25%
|
|
23% - 24%
|
|
23.2 %
|
Income from
equity companies
|
|
similar to prior
year
|
|
NA
|
|
up 69%
|
Adjusted EPS
vs. last year
|
|
2% -
6%
|
|
15% -
17%
|
|
up
17%
|
Share repurchases
($ million)
|
|
$100 - $150
|
|
$100 - $150
|
|
$225
|
Capital
expenditure ($ million)
|
|
$800-$900
|
|
~$800
|
|
$766
|
|
(a) Currency
translation only
|
(b) Currency
transaction and translation impacts
|
Business Segment Net Sales Results
Q4 change vs year
ago (%)
|
|
Volume
|
|
Price
|
|
Mix/Other
|
|
Exited
Business(a)
|
|
Currency
|
|
Total(b)
|
|
Organic(c)
|
Personal
Care
|
|
1
|
|
4
|
|
1
|
|
—
|
|
(4)
|
|
2
|
|
6
|
North
America
|
|
4
|
|
—
|
|
1
|
|
—
|
|
—
|
|
5
|
|
5
|
D&E
Markets
|
|
(1)
|
|
9
|
|
2
|
|
—
|
|
(12)
|
|
(3)
|
|
9
|
Developed
Markets
|
|
(3)
|
|
3
|
|
1
|
|
—
|
|
3
|
|
4
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
Tissue
|
|
(1)
|
|
1
|
|
—
|
|
(3)
|
|
1
|
|
(1)
|
|
—
|
North
America
|
|
2
|
|
1
|
|
—
|
|
—
|
|
—
|
|
3
|
|
3
|
D&E
Markets
|
|
(8)
|
|
1
|
|
—
|
|
(15)
|
|
—
|
|
(22)
|
|
(7)
|
Developed
Markets
|
|
(1)
|
|
1
|
|
—
|
|
—
|
|
5
|
|
6
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KC
Professional
|
|
(4)
|
|
2
|
|
2
|
|
(2)
|
|
—
|
|
(3)
|
|
(1)
|
North
America
|
|
(6)
|
|
2
|
|
1
|
|
—
|
|
—
|
|
(3)
|
|
(3)
|
D&E
Markets
|
|
(3)
|
|
8
|
|
1
|
|
(13)
|
|
(5)
|
|
(11)
|
|
6
|
Developed
Markets
|
|
(1)
|
|
(4)
|
|
6
|
|
—
|
|
5
|
|
6
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
—
|
|
2
|
|
1
|
|
(1)
|
|
(2)
|
|
—
|
|
3
|
|
Full-year change vs
year ago
(%)
|
|
Volume
|
|
Price
|
|
Mix/Other
|
|
Exited
Business(a)
|
|
Currency
|
|
Total(b)
|
|
Organic(c)
|
Personal
Care
|
|
(1)
|
|
5
|
|
1
|
|
—
|
|
(5)
|
|
1
|
|
5
|
North
America
|
|
1
|
|
2
|
|
—
|
|
—
|
|
—
|
|
4
|
|
4
|
D&E
Markets
|
|
(4)
|
|
9
|
|
2
|
|
—
|
|
(11)
|
|
(4)
|
|
7
|
Developed
Markets
|
|
(5)
|
|
6
|
|
1
|
|
—
|
|
(2)
|
|
—
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
Tissue
|
|
(3)
|
|
6
|
|
—
|
|
(2)
|
|
(1)
|
|
1
|
|
3
|
North
America
|
|
—
|
|
5
|
|
—
|
|
—
|
|
—
|
|
5
|
|
5
|
D&E
Markets
|
|
(9)
|
|
7
|
|
—
|
|
(8)
|
|
(3)
|
|
(13)
|
|
(2)
|
Developed
Markets
|
|
(5)
|
|
9
|
|
—
|
|
—
|
|
(1)
|
|
4
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KC
Professional
|
|
(5)
|
|
10
|
|
1
|
|
(1)
|
|
(1)
|
|
5
|
|
7
|
North
America
|
|
(2)
|
|
9
|
|
—
|
|
—
|
|
—
|
|
8
|
|
8
|
D&E
Markets
|
|
(5)
|
|
10
|
|
1
|
|
(6)
|
|
(6)
|
|
(5)
|
|
6
|
Developed
Markets
|
|
(13)
|
|
13
|
|
4
|
|
—
|
|
—
|
|
4
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
(2)
|
|
6
|
|
1
|
|
(1)
|
|
(3)
|
|
1
|
|
5
|
(a)
|
Impact of the sale of
Brazil tissue and K-C Professional business.
|
(b)
|
Total may not equal the
sum of volume, net price, mix/other, acquisition and currency due
to rounding and excludes intergeographic sales.
|
(c)
|
Combined impact of
changes in volume, net price and mix/other.
|
Personal Care Segment
Personal Care sales of $2.6
billion increased 2 percent in the quarter, while
organic sales increased 6 percent, driven by healthy contributions
from price, mix and volume. Innovation, solid commercial execution
and supply improvements contributed to volume growth, led by a 4
percent increase in North America.
In 2023, Personal Care grew 1 percent with an organic sales
increase of 5 percent with broad-based growth across regions.
Fourth-quarter operating profit of $429
million increased 1 percent, with organic growth and cost
savings partially offset by higher marketing, research and general
expenses and an unfavorable impact from foreign currency. Operating
profit for the year increased 6 percent to $1.9 billion.
Consumer Tissue Segment
Consumer Tissue sales of $1.5
billion decreased 1 percent in the quarter, while organic
sales were in line with last year reflecting price gains of 1
percent offset by volume decrease of 1 percent. Organic results
were led by 3 percent growth in North
America and 1 percent growth in Developed Markets.
Sequential improvement in volume trends were led by North America with an increase of 2 percent in
the quarter. For the Full-year, Consumer Tissue sales were up 1
percent with an organic increase of 3 percent.
Fourth-quarter operating profit of $269
million increased 13 percent driven by improved revenue
realization, lower input costs, and cost savings that were
partially offset by higher other manufacturing costs and an
unfavorable impact from foreign currency. Operating profit for the
year increased 21 percent to $976
million.
K-C Professional (KCP) Segment
KCP sales of $816 million
decreased 3 percent in the quarter, with an organic decrease of 1
percent, while the
2-year average organic growth in Q4 was 8 percent. Improved product
mix and revenue realization were offset by lower volumes. Strategic
investments are driving elevated consumer experiences and healthy
demand in the segment. For the full year, sales were up 5 percent
driven by an organic increase of 7 percent.
Fourth-quarter operating profit of $151
million decreased 7 percent reflecting greater investments
to fuel growth as well as higher incentive compensation levels.
Operating profit for the year increased 46 percent to $665 million.
Cash Flow and Balance Sheet
Full-year cash provided by operations was $3.5 billion compared to $2.7 billion last year. 2023 capital spending was
$766 million compared to
$876 million last year. The company returned $1.8 billion to shareholders through dividends
and share repurchases. The company completed share
repurchases of 1.8 million shares at a cost of
$225 million in 2023. Total debt was $8.0 billion as of December 31, 2023 compared to $8.4 billion at the end of 2022.
2024 Outlook
The company currently expects to deliver a low-to-mid single
digit percentage increase in 2024 Organic Net Sales versus the
prior year period, with growth in reported Net Sales forecast to
reflect negative impacts of approximately 300 basis points from
currency translation and 60 basis points from the Brazil Tissue
divestiture. Adjusted Operating Profit is expected to grow at a
high single-digit to low double-digit rate on a constant-currency
basis and Adjusted Earnings Per share are expected to grow at a
high single-digit rate on a constant-currency basis versus the
prior year period. Reported growth in Operating Profit and Earnings
Per Share are currently expected to be negatively impacted by
approximately 400 basis points from currency translation.
This outlook reflects assumptions subject to change given the
macro environment.
Supplemental Materials and Live Webcast
Supplemental materials will be available at approximately
7:00 a.m. Eastern Standard Time in
the Investor Relations section of www.kimberly-clark.com. The
company will host a live Q&A session with investors and
analysts on January 24, 2024, at
8:30 a.m. Eastern Standard Time. The
supplemental materials and Kimberly-Clark's Q&A session can be
accessed at investor.kimberly-clark.com. A replay of the webcast
will be available following the event through the same website.
2024 Investor Day
Kimberly-Clark plans to host an Investor Day in New York City in late March. The event will
feature presentations by members of the senior management team,
including Chairman and CEO Mike Hsu
and Chief Financial Officer Nelson
Urdaneta, who will detail the company's strategic priorities
and key initiatives underpinning its vision for the future and
provide a long-term financial algorithm.
The event will also be webcast and accessible from the Events
& Presentations section of the company's website. A replay of
the webcast and slides shown during the presentations will be
available on the company's website.
About Kimberly-Clark
Kimberly-Clark (NYSE: KMB) and its trusted brands are an
indispensable part of life for people in more than 175
countries and territories. Fueled by ingenuity, creativity,
and an understanding of people's most essential needs, we create
products that help individuals experience more of what's important
to them. 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.
We use sustainable practices that support a healthy planet, build
strong communities, and ensure our business thrives for decades to
come. We are proud to be recognized as one of the World's Most
Ethical Companies(R) by Ethisphere for the fifth year in
a row. To keep up with the latest news and to learn more about the
company's 150-year history of innovation, visit
kimberly-clark.com.
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 news release concerning the
outlook, anticipated financial and operating results, raw material,
energy and other input costs, anticipated currency rates and
exchange risks, including in Argentina and Türkiye, net income from equity
companies, sources and uses of cash, the effective tax rate, the
anticipated cost savings from the company's FORCE program, growth
initiatives, product innovations, contingencies and anticipated
transactions of the company constitute forward-looking statements
and are based upon management's expectations and beliefs concerning
future events impacting the company. In addition, many
factors outside our control, including the war in Ukraine (including the related responses of
consumers, customers and suppliers as well as sanctions issued by
the U.S., the European Union, Russia or other countries), pandemics,
epidemics, fluctuations in foreign currency exchange rates, 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),
government trade or similar regulatory actions, potential
competitive pressures on selling prices for our products, energy
costs, our ability to maintain key customer relationships, as well
as general economic and political conditions globally and in the
markets in which we do business, could affect the realization of
these estimates.
There can be no assurance that these future events will occur as
anticipated or that the company's 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. For a description of certain factors that could
cause the company's future results to differ from those expressed
in any such forward-looking statements, see Item 1A entitled "Risk
Factors" in the company's Annual Report on Form 10-K for the year
ended December 31, 2022.
Non-GAAP Financial Measures
This news release and the
accompanying tables include the following financial measures that
have not been calculated in accordance with accounting principles
generally accepted in the U.S., or GAAP, and are therefore referred
to as non-GAAP financial measures:
- Adjusted earnings and earnings per share
- Adjusted gross and operating profit
- Adjusted effective tax rate
These non-GAAP financial measures exclude the following items
for the relevant time periods as indicated in the accompanying
non-GAAP reconciliation tables:
- Sale of Brazil tissue and K-C
Professional business. In the second quarter of 2023, we recognized
a net benefit related to the sale of our Brazil tissue and K-C Professional
business.
- Impairment of intangible assets. In the second quarter of 2023,
we recognized non-cash charges related to the impairment of certain
intangible assets related to Softex Indonesia and Thinx.
- Pension settlements. In 2022 and 2023, we recognized pension
settlement charges related to lump-sum distributions from pension
plan assets exceeding the total of annual service and interest
costs resulting in a recognition of deferred actuarial losses.
- Acquisition of controlling interest in Thinx. In the first
quarter of 2022, the company completed the acquisition of a
majority and controlling share of Thinx. As a result of this
transaction, a net benefit was recognized primarily due to the
nonrecurring, non-cash gain recognized related to the remeasurement
of the carrying value of previously held equity investment to fair
value partially offset by transaction and integration costs.
The company provides these non-GAAP financial measures as
supplemental information to our GAAP financial measures.
Management and the company's Board of Directors use adjusted
earnings, adjusted earnings per share and adjusted gross and
operating profit to (a) evaluate the company's historical and
prospective financial performance and its performance relative to
its competitors, (b) allocate resources and (c) measure the
operational performance of the company's business units and their
managers. Management also believes that the use of an
adjusted effective tax rate provides improved insight into the tax
effects of our ongoing business operations.
Additionally, the Management Development and Compensation
Committee of the company's Board of Directors has used certain of
the non-GAAP financial measures when setting and assessing
achievement of incentive compensation goals. These goals are based,
in part, on the company's adjusted earnings per share.
This news release includes information regarding organic sales
growth, which describes the impact of changes in volume, net
selling prices and product mix on net sales. Changes in
foreign currency exchange rates, acquisitions and exited businesses
also impact the year-over-year change in net sales.
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Three Months
Ended
December 31
|
|
|
|
2023
|
|
2022
|
|
Change
|
Net
Sales
|
$
4,970
|
|
$ 4,964
|
|
—
|
Cost of products
sold
|
3,233
|
|
3,337
|
|
-3 %
|
Gross
Profit
|
1,737
|
|
1,627
|
|
+7 %
|
Marketing, research
and general expenses
|
993
|
|
916
|
|
+8 %
|
Other (income) and
expense, net
|
74
|
|
(1)
|
|
N.M.
|
Operating
Profit
|
670
|
|
712
|
|
-6 %
|
Nonoperating
expense
|
(18)
|
|
(24)
|
|
-25 %
|
Interest
income
|
32
|
|
7
|
|
+357 %
|
Interest
expense
|
(70)
|
|
(76)
|
|
-8 %
|
Income Before Income
Taxes and Equity Interests
|
614
|
|
619
|
|
-1 %
|
Provision for income
taxes
|
(155)
|
|
(139)
|
|
+12 %
|
Income Before Equity
Interests
|
459
|
|
480
|
|
-4 %
|
Share of net income of
equity companies
|
53
|
|
35
|
|
+51 %
|
Net
Income
|
512
|
|
515
|
|
-1 %
|
Net income
attributable to noncontrolling interests
|
(3)
|
|
(8)
|
|
-63 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
509
|
|
$
507
|
|
—
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
1.51
|
|
$
1.50
|
|
+1 %
|
Diluted
|
$
1.50
|
|
$
1.50
|
|
—
|
|
|
|
|
|
|
Cash Dividends
Paid
|
$
1.18
|
|
$
1.16
|
|
+2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
December
31
|
|
|
|
2023
|
|
2022
|
|
|
Outstanding shares as
of
|
337.0
|
|
337.5
|
|
|
Average diluted shares
for three months ended
|
339.0
|
|
338.5
|
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Twelve Months
Ended
December 31
|
|
|
|
2023
|
|
2022
|
|
Change
|
Net
Sales
|
$
20,431
|
|
$
20,175
|
|
+1 %
|
Cost of products
sold
|
13,399
|
|
13,956
|
|
-4 %
|
Gross
Profit
|
7,032
|
|
6,219
|
|
+13 %
|
Marketing, research
and general expenses
|
3,961
|
|
3,581
|
|
+11 %
|
Impairment of
intangible assets
|
658
|
|
—
|
|
N.M.
|
Other (income) and
expense, net
|
69
|
|
(43)
|
|
N.M.
|
Operating
Profit
|
2,344
|
|
2,681
|
|
-13 %
|
Nonoperating
expense
|
(96)
|
|
(73)
|
|
+32 %
|
Interest
income
|
66
|
|
14
|
|
+371 %
|
Interest
expense
|
(293)
|
|
(282)
|
|
+4 %
|
Income Before Income
Taxes and Equity Interests
|
2,021
|
|
2,340
|
|
-14 %
|
Provision for income
taxes
|
(453)
|
|
(495)
|
|
-8 %
|
Income Before Equity
Interests
|
1,568
|
|
1,845
|
|
-15 %
|
Share of net income of
equity companies
|
196
|
|
116
|
|
+69 %
|
Net
Income
|
1,764
|
|
1,961
|
|
-10 %
|
Net income
attributable to noncontrolling interests
|
—
|
|
(27)
|
|
-100 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
1,764
|
|
$ 1,934
|
|
-9 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
5.22
|
|
$
5.73
|
|
-9 %
|
Diluted
|
$
5.21
|
|
$
5.72
|
|
-9 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
4.72
|
|
$
4.64
|
|
+2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
December
31
|
|
|
|
2023
|
|
2022
|
|
|
Average diluted shares
for twelve months ended
|
338.8
|
|
338.3
|
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
2023 Data is
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
Three Months Ended
December 31, 2023
|
|
|
As
Reported
|
|
Pension Settlements
|
|
As
Adjusted
Non-GAAP
|
Nonoperating
expense
|
|
$
(18)
|
|
$
(4)
|
|
$
(14)
|
Provision for income
taxes
|
|
(155)
|
|
1
|
|
(156)
|
Effective tax
rate
|
|
25.2 %
|
|
—
|
|
25.2 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
509
|
|
(3)
|
|
512
|
Diluted Earnings per
Share(a)
|
|
1.50
|
|
(0.01)
|
|
1.51
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
As
Reported
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Nonoperating
expense
|
|
$
(24)
|
|
$
(18)
|
|
$
(6)
|
Provision for income
taxes
|
|
(139)
|
|
5
|
|
(144)
|
Effective tax
rate
|
|
22.5 %
|
|
—
|
|
22.6 %
|
Net income attributable
to Kimberly-Clark Corporation
|
|
507
|
|
(13)
|
|
520
|
Diluted earnings per
share(a)
|
|
1.50
|
|
(0.04)
|
|
1.54
|
|
|
(a)
|
"As Adjusted Non-GAAP"
may not equal "As Reported" plus "Adjustments" as a result of
rounding.
|
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
|
|
NON-GAAP RECONCILIATIONS
|
|
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023
|
|
|
As
Reported
|
|
Sale of Brazil
Tissue and
K-C
Professional
Business
|
|
Impairment
of
Intangible
Assets
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$ 13,399
|
|
$
15
|
|
$
—
|
|
$
—
|
|
$
13,384
|
Gross Profit
|
|
7,032
|
|
(15)
|
|
—
|
|
—
|
|
7,047
|
Marketing, research and
general expenses
|
|
3,961
|
|
15
|
|
—
|
|
—
|
|
3,946
|
Impairment of
intangible assets
|
|
658
|
|
—
|
|
658
|
|
—
|
|
—
|
Other (income) and
expense, net
|
|
69
|
|
(74)
|
|
—
|
|
—
|
|
143
|
Operating
Profit
|
|
2,344
|
|
44
|
|
(658)
|
|
—
|
|
2,958
|
Nonoperating
expense
|
|
(96)
|
|
—
|
|
—
|
|
(35)
|
|
(61)
|
Provision for income
taxes
|
|
(453)
|
|
(18)
|
|
175
|
|
9
|
|
(619)
|
Effective tax
rate
|
|
22.4 %
|
|
—
|
|
—
|
|
—
|
|
23.2 %
|
Net income attributable
to noncontrolling interests
|
|
—
|
|
—
|
|
20
|
|
—
|
|
(20)
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
1,764
|
|
26
|
|
(463)
|
|
(26)
|
|
2,227
|
Diluted Earnings per
Share(a)
|
|
5.21
|
|
0.08
|
|
(1.36)
|
|
(0.08)
|
|
6.57
|
|
|
|
Twelve Months Ended
December 31, 2022
|
|
|
As
Reported
|
|
Acquisition of
Controlling
Interest in
Thinx
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Marketing, research and
general expenses
|
|
$ 3,581
|
|
$
21
|
|
$
—
|
|
$ 3,560
|
Other (income) and
expense, net
|
|
(43)
|
|
(85)
|
|
—
|
|
42
|
Operating
Profit
|
|
2,681
|
|
64
|
|
—
|
|
2,617
|
Nonoperating
expense
|
|
(73)
|
|
—
|
|
(52)
|
|
(21)
|
Provision for income
taxes
|
|
(495)
|
|
4
|
|
13
|
|
(512)
|
Effective tax
rate
|
|
21.2 %
|
|
—
|
|
—
|
|
22.0 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
1,934
|
|
68
|
|
(39)
|
|
1,905
|
Diluted Earnings per
Share(a)
|
|
5.72
|
|
0.20
|
|
(0.12)
|
|
5.63
|
|
(a)
|
"As Adjusted Non-GAAP"
may not equal "As Reported" plus "Adjustments" as a result of
rounding.
|
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 the company's
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. The company compensates 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.
|
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED BALANCE
SHEETS
|
(Millions)
|
|
|
December
31
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
1,093
|
|
$
427
|
Accounts receivable,
net
|
2,135
|
|
2,280
|
Inventories
|
1,955
|
|
2,269
|
Other current
assets
|
520
|
|
753
|
Total Current
Assets
|
5,703
|
|
5,729
|
Property, Plant and
Equipment, Net
|
7,913
|
|
7,885
|
Investments in
Equity Companies
|
306
|
|
238
|
Goodwill
|
2,085
|
|
2,074
|
Other Intangible
Assets, Net
|
197
|
|
851
|
Other
Assets
|
1,140
|
|
1,193
|
TOTAL
ASSETS
|
$
17,344
|
|
$
17,970
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
567
|
|
$
844
|
Trade accounts
payable
|
3,653
|
|
3,813
|
Accrued expenses and
other current liabilities
|
2,316
|
|
2,289
|
Dividends
payable
|
394
|
|
388
|
Total Current
Liabilities
|
6,930
|
|
7,334
|
Long-Term
Debt
|
7,417
|
|
7,578
|
Noncurrent Employee
Benefits
|
669
|
|
654
|
Deferred Income
Taxes
|
374
|
|
647
|
Other
Liabilities
|
860
|
|
799
|
Redeemable Common
and Preferred Securities of Subsidiaries
|
26
|
|
258
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
915
|
|
547
|
Noncontrolling
Interests
|
153
|
|
153
|
Total Stockholders'
Equity
|
1,068
|
|
700
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
17,344
|
|
$
17,970
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH FLOW
STATEMENTS
|
(Millions)
|
|
|
|
Twelve Months
Ended
December 31
|
|
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
|
Net income
|
|
$
1,764
|
|
$
1,961
|
Depreciation and
amortization
|
|
753
|
|
754
|
Asset
impairments
|
|
676
|
|
—
|
Gain on previously
held equity investment in Thinx
|
|
—
|
|
(85)
|
Stock-based
compensation
|
|
169
|
|
150
|
Deferred income
taxes
|
|
(322)
|
|
(57)
|
Net (gains) losses on
asset and business dispositions
|
|
(75)
|
|
15
|
Equity companies'
earnings (in excess of) less than dividends paid
|
|
(59)
|
|
6
|
Operating working
capital
|
|
582
|
|
(17)
|
Postretirement
benefits
|
|
24
|
|
(4)
|
Other
|
|
30
|
|
10
|
Cash Provided by
Operations
|
|
3,542
|
|
2,733
|
Investing
Activities
|
|
|
|
|
Capital
spending
|
|
(766)
|
|
(876)
|
Acquisition of
business, net of cash acquired
|
|
—
|
|
(46)
|
Proceeds from asset
and business dispositions
|
|
245
|
|
12
|
Investments in time
deposits
|
|
(720)
|
|
(658)
|
Maturities of time
deposits
|
|
815
|
|
797
|
Other
|
|
8
|
|
(14)
|
Cash Used for
Investing
|
|
(418)
|
|
(785)
|
Financing
Activities
|
|
|
|
|
Cash dividends
paid
|
|
(1,588)
|
|
(1,558)
|
Change in short-term
debt
|
|
(371)
|
|
261
|
Debt
proceeds
|
|
363
|
|
—
|
Debt
repayments
|
|
(475)
|
|
(312)
|
Proceeds from exercise
of stock options
|
|
97
|
|
94
|
Acquisitions of common
stock for the treasury
|
|
(225)
|
|
(100)
|
Cash paid for
redemption of common securities of Thinx
|
|
(95)
|
|
—
|
Cash dividends paid to
noncontrolling interests
|
|
(35)
|
|
(98)
|
Other
|
|
(45)
|
|
(47)
|
Cash Used for
Financing
|
|
(2,374)
|
|
(1,760)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
|
(84)
|
|
(31)
|
Change in Cash and
Cash Equivalents
|
|
666
|
|
157
|
Cash and Cash
Equivalents - Beginning of Period
|
|
427
|
|
270
|
Cash and Cash
Equivalents - End of Period
|
|
$
1,093
|
|
$
427
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
Three Months
Ended
December 31
|
|
|
|
Twelve Months
Ended
December 31
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$ 2,602
|
|
$ 2,555
|
|
+2 %
|
|
$
10,691
|
|
$
10,622
|
|
+1 %
|
Consumer
Tissue
|
|
1,540
|
|
1,560
|
|
-1 %
|
|
6,290
|
|
6,243
|
|
+1 %
|
K-C
Professional
|
|
816
|
|
838
|
|
-3 %
|
|
3,404
|
|
3,256
|
|
+5 %
|
Corporate &
Other
|
|
12
|
|
11
|
|
N.M.
|
|
46
|
|
54
|
|
N.M.
|
TOTAL NET
SALES
|
|
$ 4,970
|
|
$ 4,964
|
|
—
|
|
$
20,431
|
|
$
20,175
|
|
+1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
429
|
|
$
423
|
|
+1 %
|
|
$ 1,890
|
|
$ 1,787
|
|
+6 %
|
Consumer
Tissue
|
|
269
|
|
239
|
|
+13 %
|
|
976
|
|
806
|
|
+21 %
|
K-C
Professional
|
|
151
|
|
163
|
|
-7 %
|
|
665
|
|
457
|
|
+46 %
|
Corporate &
Other(a)
|
|
(105)
|
|
(114)
|
|
N.M.
|
|
(1,118)
|
|
(412)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
|
74
|
|
(1)
|
|
N.M.
|
|
69
|
|
(43)
|
|
N.M.
|
TOTAL OPERATING
PROFIT
|
|
$
670
|
|
$
712
|
|
-6 %
|
|
$ 2,344
|
|
$ 2,681
|
|
-13 %
|
|
|
(a)
|
Corporate & Other
and Other (income) and expense, net include income and expense not
associated with the business segments, including adjustments as
indicated in the Non-GAAP Reconciliations.
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
[KMB-F]
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SOURCE Kimberly-Clark Corporation