FIRST QUARTER 2018 RESULTS
19 Abril 2018 - 3:14PM
BMV General Information
APRIL 19, 2018KIMBERLY-CLARK DE MXICO, S.A.B. DE C.V.
FIRST QUARTER 2018RESULTS
HIGHLIGHTS:- FIRST QUARTER SALES GREW 7.1% TO PS. $10.2 BILLION, A
NEW QUARTERLY RECORD- BETTER GROSS, OPERATING, NET AND EBITDA
MARGINS BOTH YEAR OVER YEAR AND SEQUENTIALLY- HIGHER SELLING
PRICES, COST SAVINGS AND A MORE FAVORABLE FX RATE HAD A POSITIVE
IMPACT ON PROFITABILITY- EBITDA OF PS.$2.4 BILLION DURING THE
QUARTER WITH 23.9% MARGIN
- COST SAVINGS OF $250 MILLION DURING THE QUARTER
QUARTERLY FINANCIAL RESULTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS)MILLION PESOS
1Q'18 1Q'17 CHANGENET SALES $10,207 $9,531 7.1%
GROSS PROFIT 3,726 3,385 10.1%OPERATING PROFIT 2,021 1,828
10.5%
NET INCOME 1,207 1,095 10.2%EBITDA 2,436 2,264 7.6%
NET SALES WERE 7.1% HIGHER THAN THE PREVIOUS YEAR. THE PRICING
INITIATIVES IMPLEMENTED OVER THE LAST TWELVE MONTHS, TOGETHER WITH
A POSITIVE MIX COMPARISON, RESULTED IN A 5.2% CONTRIBUTION. VOLUME
GROWTH OF 1.9% WAS MAINLY DRIVEN BY INCREASED EXPORTS AS DOMESTIC
CONSUMPTION IS FLAT.
CONSUMER PRODUCT REVENUES INCREASED 3.3%, AWAY FROM HOME GREW
8.3%AND EXPORTS INCREASED 97.2%. EXPORT SALES REFLECT THE
ADDITIONAL TISSUE CAPACITY FROM THE MORELIA TISSUE MACHINE.GROSS
PROFIT GREW 10.1%, WHILE THE MARGIN INCREASED 100 BASIS POINTS YEAR
OVER YEAR TO 36.5%. PRICES OF VIRGIN FIBERS CONTINUED RISING AND
COMPARED VERYNEGATIVELY. DOMESTIC RECYCLED FIBERS AND OIL
DERIVATIVES ADDED TO THE RAW MATERIALS PRICE INFLATION. THIS
PRESSURE, HOWEVER, WAS OFFSET BY EFFICIENCIES FROM HIGHER VOLUMES,
LOWER PRICES OF OTHER IMPORTED MATERIALS, BETTER ENERGY COSTS, THE
POSITIVE RESULTS OF THE COST REDUCTION PROGRAM, WHICH YIELDED PS.
$250 MILLION DURING THE QUARTER AND A MORE FAVORABLE FX RATE.
OPERATING EXPENSES GREW 9.5% REFLECTING HIGHER DISTRIBUTION COSTS
AS WELL AS ADDED ADVERTISING AND PROMOTION INVESTMENTS TO
STRENGTHEN OUR BRANDS AND SUPPORT OUR INNOVATIONS.
OPERATING INCOME INCREASED 10.5% AND MARGIN WAS 19.8%, A YEAR ON
YEAR INCREASE OF 60 BASIS POINTS AND A SEQUENTIAL IMPROVEMENT OF 80
BASIS POINTS.
COST OF FINANCINGWAS PS. $299 MILLION IN THE FIRST QUARTER,
COMPARED TO PS. $277 MILLION IN THE SAME PERIOD OF LAST YEAR.
INTEREST EXPENSE WAS HIGHER FROM INCREASED DEBT AND HIGHER INTEREST
RATES. FOREIGN EXCHANGE GAIN IN THE PERIOD WAS PS. $43 MILLION
COMPARED TO A LOSS OF PS. $33 MILLION IN THE PREVIOUS YEAR.NET
INCOME INCREASED 10.2% AND EARNINGS PER SHARE FOR THE QUARTER WERE
$0.39. EBITDA INCREASED 7.6% TO PS.$2.4 BILLION IN THE QUARTER AND
WAS ALSO BETTER SEQUENTIALLY.
DURING THE LAST TWELVE MONTHS, WEINVESTED PS. $2,391 MILLION IN
CAPEX AND PAID PS. $4,872 MILLION IN DIVIDENDS.
AS OF MARCH 31, THE COMPANY HELD PS.$5.4 BILLION IN CASH AND
EQUIVALENTS. TOTAL NET DEBT AS OF MARCH 2018 WAS PS. $14.1 BILLION,
COMPARED TO PS. $14.3 BILLION ON DECEMBER 2017. LONG-TERM DEBT
COMPRISED 92% OF TOTAL DEBT AND ALL DEBT WAS DENOMINATED IN MEXICAN
PESOS.
IN DOLLARS, UNDER US GAAP, NET SALES INCREASED 15% IN THE QUARTER,
OPERATING PROFIT INCREASED 15% AND NET INCOME INCREASED 14%.
SHARE BUYBACK PROGRAM YEAR TO DATE2018
2017
SHARES REPURCHASED - 3,041,564FINANCIAL POSITIONMILLION PESOS
AS OF MARCH2018 2017
ASSETSCASH AND CASH EQUIVALENTS $ 5,426 $ 7,276
TRADE AND OTHER RECEIVABLES 7,538 6,288INVENTORIES 3,402 3,178
PROPERTY, PLANT AND EQUIPMENT 17,592 16,583DERIVATIVE FINANCIAL
INSTRUMENTS 2,644 3,177
INTANGIBLE ASSETS AND OTHERS 3,396 3,554TOTAL $39,998 $ 40,056
LIABILITIES AND EQUITY
BANK LOANS CURRENT $ 200 $ 100
CURRENTPORTION OF LONG TERM DEBT 1,500 2,500
TRADE PAYABLES 5,504 4,679
EMPLOYEE BENEFITS 1,349 1,435
DIVIDENDS PAYABLE 31 4,903
CAPITAL REIMBURSEMENT 4,874 -
PROVISIONS AND OTHER LIABILITIES 2,139 2,011
CURRENT INCOME TAXPAYABLE 312 283
LONG TERM DEBT 20,456 19,330
DEFERRED TAXES 971 1,340
OTHER LIABILITIES 483 443
EQUITY 2,179 3,032TOTAL $39,998 $ 40,056
CASH FLOWMILLION PESOSTHREE MONTHS ENDED MARCH
2018 2017PROFIT BEFORE TAX $1,722 $1,551DEPRECIATION 416 436
OTHER 298 277CASH USED IN OPERATIONS (827) (1,310)
NET CASH FLOW FROM OPERATING ACTIVITIES 1,609 954CAPITAL
EXPENDITURES (492) (676)
REPURCHASE OF SHARES
- (106)BORROWINGS 24 100
PAYMENT OF NET INTEREST
(273) (231)NET INCREASE IN CASH 868 41
EFFECT OF EXCHANGE RATE CHANGES ON CASH (116) (226)CASH AND
EQUIVALENTS AT THE BEGINNING OF PERIOD 4,674 7,461
CASH AND EQUIVALENTS AT THE END OF PERIOD 5,426 7,276CONFERENCE
CALL INFORMATION
THE 1Q'18 CONFERENCE CALL WILL BE HELD ON FRIDAY, APRIL 20, 2018 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; CONFERENCEID: KIMBERLY.
A REPLAY OF THE CONFERENCE CALL WILL BE AVAILABLE THROUGH APRIL 27,
2018. TO ACCESS THE REPLAY, PLEASE DIAL US +1(877) 919-4059,
INTERNATIONAL +1(334) 323-0140; CONFERENCE ID: 73348796
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
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) 5282-7204AZUL.ARGUELLES@KCC.COM