SECOND QUARTER 2018 RESULTS
19 Julio 2018 - 03:10PM
BMV General Information
JULY 19, 2018KIMBERLY-CLARK DE MXICO, S.A.B. DE C.V.
SECOND QUARTER 2018RESULTS
HIGHLIGHTS:- SECOND QUARTER SALES GREW 10.2% TO A RECORD PS. $10.6
BILLION
- GROSS AND OPERATING MARGINS EXPANDED YEAR OVER YEAR 60 AND 50
BASIS POINTS, RESPECTIVELY
- SIGNIFICANT RAW MATERIAL COST PRESSURE CONTINUED
- EBITDA GREW 10.3% TO PS.$2.4 BILLION
- COST SAVINGS OF $350 MILLION DURING THE QUARTER
QUARTERLY FINANCIAL RESULTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS)MILLION PESOS
2Q'18 2Q'17 CHANGENET SALES $10,589 $9,606 10.2%
GROSS PROFIT 3,815 3,399 12.2%OPERATING PROFIT 2,036 1,797
13.3%
NET INCOME 1,100 1,013 8.6%EBITDA 2,439 2,212 10.3%
NET SALES WERE 10.2% HIGHER THAN PREVIOUS YEAR. THE PRICE INCREASES
IMPLEMENTED OVER THE PAST TWELVE MONTHS, TOGETHER WITH A SLIGHTLY
BETTER MIX, CONTRIBUTED 6.8% WHILE VOLUME GREW 3.4%.CONSUMER
PRODUCT REVENUES INCREASED 6.2%, AWAY FROM HOME GREW 12.3% AND
EXPORTS INCREASED 86.7%.GROSS PROFIT GREW 12.2% AND THE MARGIN
INCREASED 60 BASIS POINTS YEAR OVER YEAR TO 36.0%. PRICES OF RAW
MATERIALS CONTINUE TO INCREASE, PARTICULARLY VIRGIN FIBERS, OIL
DERIVATIVES AND SUPERABSORBENT MATERIALS WHICH HAVE INCREASED
SIGNIFICANTLY, IN DOLLARS, OVER THE PAST EIGHTEEN MONTHS. ENERGY
AND NATURAL GAS PRICES AS WELL AS THE AVERAGE PESO-DOLLAR PARITY
ALSO COMPARED NEGATIVELY ADDING TO THE PRESSURE. ON THE POSITIVE
SIDE, WE ACHIEVED EFFICIENCIES FROM HIGHER VOLUMES AND OUR COST
REDUCTION PROGRAM YIELDED MORE THAN PS. $350 MILLION OVER THE
QUARTER.
OPERATING EXPENSES WERE IN LINE YEAR OVER YEAR AS A PERCENTAGE OF
SALES AT 16.8%. WE CONTINUE TO SUPPORT OUR BRANDS AND INNOVATIONS
WITH EFFICIENT ADVERTISING AND PROMOTIONAL ACTIVITIES.
OPERATING PROFIT INCREASED 13.3% AND MARGIN WAS 19.2%, A YEAR ON
YEAR INCREASE OF 50 BASIS POINTS.
EBITDA INCREASED 10.3% TO PS. $2.4 BILLION IN THE QUARTER.
COST OF FINANCING WAS PS. $455 MILLION IN THE SECOND QUARTER,
COMPARED TO PS. $300 MILLION IN THE SAME PERIOD OF LAST YEAR.
INTEREST EXPENSE WAS HIGHER FROM INCREASED DEBT AND HIGHER INTEREST
RATES. A FOREIGN EXCHANGE LOSS IN THE PERIOD OF PS. $93 MILLION
COMPARED TO AN EXCHANGE GAIN OF PS. $1 MILLION IN THE PREVIOUS
YEAR.NET INCOME INCREASED 8.6% AND EARNINGS PER SHARE FOR THE
QUARTER WERE $0.36. DURING THE LAST TWELVE MONTHS, WE INVESTED PS.
$2,212 MILLION IN CAPEX AND PAID PS. $4,872 MILLION PESOS TO OUR
SHAREHOLDERS.
AS OF JUNE 30, THE COMPANY HELD PS. $7.5 BILLION IN CASH AND
EQUIVALENTS. TOTAL NET DEBT AS OF JUNE 2018 WAS PS. $15.0 BILLION,
COMPARED TO PS. $14.3 BILLION ON DECEMBER 2017. LONG-TERMDEBT
COMPRISED 93% OF TOTAL DEBT AND ALL DEBT WAS DENOMINATED IN MEXICAN
PESOS.
DURING THE QUARTER THE COMPANY ENTERED INTO A PS. $3.0 BILLION TERM
LOAN AGREEMENT. THE PRINCIPAL WILL BE AMORTIZED IN TWO
INSTALLMENTS, ON YEARS FIVE AND EIGHT.IN DOLLARS, UNDER US GAAP,
NET SALES INCREASED 9% IN THE QUARTER, OPERATING PROFIT INCREASED
11% AND NET INCOME INCREASED 5%.
SHARE BUYBACK PROGRAM YEAR TO DATE
2018
2017SHARES REPURCHASED - 3,141,564YTD FINANCIAL RESULTS
MILLION PESOS6M'18 6M'17 CHANGE
NET SALES $20,796 $19,136 8.7%GROSS PROFIT 7,541 6,784 11.2%
OPERATING PROFIT 4,056 3,625 11.9%NET INCOME 2,307 2,108 9.4%
EBITDA 4,876 4,476 8.9%FINANCIAL POSITION
MILLION PESOSAS OF JUNE
2018 2017ASSETS
CASH AND CASH EQUIVALENTS $ 7,510 $ 6,261
TRADE AND OTHER RECEIVABLES 7,531 6,353
INVENTORIES 3,677 3,442
PROPERTY, PLANT AND EQUIPMENT 17,838 17,005
DERIVATIVE FINANCIAL INSTRUMENTS 3,708 2,858
INTANGIBLEASSETS AND OTHERS 3,352 3,517
TOTAL $43,616 $ 39,436LIABILITIES AND EQUITY
BANK LOANS CURRENT$ 230 $ 175
CURRENT PORTION OF LONG TERM DEBT 1,500 -
TRADE PAYABLES 5,8594,863
EMPLOYEE BENEFITS 954 885
DIVIDENDS PAYABLE 31 3,685
CAPITAL REIMBURSEMENT 3,656 -
PROVISIONS AND OTHER LIABILITIES 1,974 1,903
CURRENT INCOME TAX PAYABLE 320 143
LONG TERM DEBT 24,469 21,894DEFERRED TAXES 858 1,333
OTHER LIABILITIES 491 432EQUITY 3,274 4,123
TOTAL $43,616 $ 39,436CASH FLOW
MILLION PESOSSIX MONTHS ENDED JUNE2018 2017PROFIT BEFORE TAX $3,303
$3,049
DEPRECIATION 819 851OTHER 754 576
CASH USED IN OPERATIONS (2,072) (2,656)NET CASH FLOW FROM OPERATING
ACTIVITIES 2,804 1,820
CAPITAL EXPENDITURES (1,093) (1,460)REPURCHASE OF SHARES
- (110)
BORROWINGS 3,035 3,163DIVIDENDS AND CAPITAL REIMBURSEMENT (1,218)
(1,218)
PAYMENT OF BORROWINGS & NET INTEREST (690) (3,074)NET INCREASE
(DECREASE) IN CASH 2,838 (879)
EFFECT OF EXCHANGE RATE CHANGES ON CASH (2) (321)
CASH AND EQUIVALENTS AT THE BEGINNING OF PERIOD 4,674 7,461
CASH AND EQUIVALENTS AT THE END OF PERIOD 7,510 6,261
CONFERENCE CALL INFORMATION
THE 2Q'18 CONFERENCE CALL WILL BE HELD ON FRIDAY, JULY 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; CONFERENCE ID: KIMBERLY.A REPLAY OF
THE CONFERENCE CALL WILL BE AVAILABLE THROUGH JULY 27, 2018. TO
ACCESS THE REPLAY,PLEASE DIAL US +1(877) 919-4059, INTERNATIONAL
+1(334) 323-0140; CONFERENCE ID: 60620990
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 CONTACTAZUL ARGELLES
TEL: (5255) 5282-7204AZUL.ARGUELLES@KCC.COM