FIRST QUARTER 2017 RESULTS
20 Abril 2017 - 3:10PM
BMV General Information
APRIL 20, 2017KIMBERLY-CLARK DE MXICO, S.A.B. DE C.V.
FIRST QUARTER 2017RESULTS
HIGHLIGHTS:
- NET SALES ROSE 9.2% TO PS. $9.5 BILLION A NEW QUARTERLY RECORD,
DRIVEN BY VOLUME AND BETTER PRICING & MIX
- OPERATING PROFIT AND NET INCOME DECLINED BY 10.8% AND 1.3%
RESPECTIVELY, MAINLY REFLECTING AN INCREASED FX PRESSURE ON COSTS
DURING THE QUARTER
- EBITDA OF PS. $2.3 BILLIONAND 23.8% MARGIN
- COST SAVINGS OF APPROXIMATELY PS. $300 MILLION DURING THE
QUARTER
- NEW TISSUE AND WIPES BASE SHEET EXPANSION TO START UP IN 4Q
QUARTERLY FINANCIAL RESULTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS)MILLION PESOS
1Q'17 1Q'16 CHANGENET SALES $9,531 $8,728 9.2%
GROSS PROFIT 3,385 3,436 (1.5)%OPERATING PROFIT 1,828 2,050
(10.8)%
NET INCOME 1,095 1,110 (1.3)%EBITDA 2,264 2,459 (7.9)%
NET SALES WERE 9.2% HIGHER THAN PREVIOUS YEAR. A PRICEAND MIX
CONTRIBUTION OF 6.9% WAS THE RESULT OF PRICING INITIATIVES
IMPLEMENTED OVER THE LAST TWELVE MONTHS. VOLUME GROWTH WAS
2.3%.CONSUMER PRODUCT REVENUES INCREASED 9.9%, AWAY FROM HOME 12.9%
AND EXPORTS DECREASED 6.0% MAINLY AS A CONSEQUENCE OF CONSTRAINED
TISSUE CAPACITY FROM POSITIVE DOMESTIC GROWTH.
GROSS PROFIT DECLINED 1.5% AND MARGIN WAS 35.5%. THIS REFLECTS
THESIGNIFICANT PRESSURE ON COSTS, MAINLY A CONSEQUENCE OF THE PESO
DEPRECIATION, WHICH WAS ON AVERAGE 15% YOY. ADDITIONAL PRESSURE
FROM RECYCLED FIBER, POLYMERS AND ENERGY COSTS, IN DOLLAR TERMS,
WAS NOT FULLY COMPENSATED BY THE POSITIVE TOP LINE PERFORMANCE AND
THE PS. $300 MILLION FROM THE COST REDUCTION PROGRAM DURINGTHE
QUARTER.
OPERATING EXPENSES AS A PERCENTAGE OF SALES WERE 40 BASIS POINTS
HIGHER, AT 16.3%, REFLECTING AN INCREASE IN DISTRIBUTION EXPENSES
AND THE CONSOLIDATION OF 4E.
OPERATING INCOME DECREASED 10.8%, WHILE MARGIN WAS 19.2%.
COST OF FINANCING WAS PS. $277 MILLION IN THE FIRST QUARTER
COMPARED TO PS. $453 MILLION IN THE SAME PERIOD OF LAST YEAR
REFLECTING A LOWER EXCHANGE RATE LOSS OF PS. $33 MILLION COMPARED
TO PS. $223 MILLION IN 1Q'16. IT ALSO REFLECTS HIGHER INTEREST
EXPENSE FROM MORE DEBT AND INTEREST RATE INCREASES.
NET INCOME DECREASED 1.3% AND EARNINGS PER SHARE FOR THE QUARTER
WERE $0.35. EBITDA DECREASED7.9% TO PS. $2.3 BILLION IN THE
QUARTER.
DURING THE LAST TWELVE MONTHS, WE INVESTED PS. $4,316 MILLION (PS.
$4,090 MILLION IN CAPEX AND ACQUISITIONS AND PS. $226 MILLION IN
OUR SHARE BUY-BACK PROGRAM) AND PAID PS. $4,702 MILLION IN
DIVIDENDS TO OUR SHAREHOLDERS.
AS OF MARCH 31, THE COMPANY HELD PS. $7.3 BILLION IN CASH AND
EQUIVALENTS. TOTAL NET DEBT AS OF MARCH 31, 2017 WAS PS. $11.5
BILLION, COMPARED TO PS. $10.9 BILLION ON DECEMBER 2016.LONG-TERM
DEBT COMPRISED 88% OF TOTAL DEBT AND ALL DEBT WAS DENOMINATED IN
MEXICAN PESOS.
IN DOLLARS, UNDER US GAAP, NET SALES DECREASED 5% IN THE QUARTER,
OPERATING PROFIT DECREASED 22% AND NET INCOME DECREASED 17%.
SHARE BUYBACK PROGRAM YEAR TO DATE2017
2016
SHARES REPURCHASED 3,041,564 4,504,283FINANCIAL POSITIONMILLION
PESOS
AS OF MARCH2017 2016
ASSETSCASH AND CASH EQUIVALENTS $ 7,276 $ 11,088
TRADE AND OTHER RECEIVABLES 6,288 5,544INVENTORIES 3,178 2,324
PROPERTY, PLANT AND EQUIPMENT 16,583 15,694DERIVATIVE FINANCIAL
INSTRUMENTS 3,177 1,842
INTANGIBLE ASSETS AND OTHERS 3,554 1,518TOTAL $40,056 $
38,010LIABILITIES AND EQUITY
BANK LOANS CURRENT $ 100 $
-CURRENT PORTION OF LONG TERM DEBT 2,500 -
TRADE PAYABLES 4,679 3,998EMPLOYEE BENEFITS 1,435 1,390
DIVIDENDS PAYABLE 4,903 4,731
PROVISIONS AND OTHER LIABILITIES 2,011 2,011
CURRENT INCOME TAX PAYABLE 283 324
LONG TERM DEBT 19,330 20,777
NON-CURRENT DERIVATIVE FINANCIAL INSTRUMENTS - 71
DEFERRED TAXES 1,340 1,479
OTHER LIABILITIES 443 211
EQUITY 3,0323,018
TOTAL $40,056 $ 38,010
CASH FLOWMILLION PESOSTHREE MONTHS ENDED MARCH
2017 2016PROFIT BEFORE TAX $1,551 $1,598
DEPRECIATION 436 408
OTHER 277 453CASH USED IN OPERATIONS (1,310) (1,049)
NET CASH FLOW FROM OPERATING ACTIVITIES954 1,410
CAPITAL EXPENDITURES (676) (421)
REPURCHASE OF SHARES (106) (178)BANK LOANS AND DEBT ISSUANCE 100
3,567
PAYMENT OF BORROWINGS, NET INTEREST & OTHER(231) (1,022)
NET INCREASE IN CASH 41 3,356
EFFECT OF EXCHANGE RATE CHANGES ON CASH (226) (201)
CASH AND EQUIVALENTS AT THE BEGINNING OF PERIOD 7,461 7,933
CASH AND EQUIVALENTS AT THE END OF PERIOD 7,276 11,088
CONFERENCE CALL INFORMATION
THE 1Q'17 CONFERENCE CALL WILL BE HELD ON FRIDAY, APRIL 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 APRIL
28,2017. TO ACCESS THE REPLAY, PLEASE DIAL US +1(877) 919-4059,
INTERNATIONAL +1(334) 323-0140; CONFERENCE ID:
56433245KIMBERLY-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 OUR CATEGORIES WITH BRANDS SUCH AS HUGGIES, KLEEN-BEB,
KLEENEX, KIMLARK, PTALO, COTTONELLE, DEPEND, KOTEX, EVENFLO AND
ESCUDO.
INVESTOR RELATIONS CONTACT
AZUL ARGELLES
TEL: (5255) 5282-7204
AZUL.ARGUELLES@KCC.COM