Kimberly-Clark Corporation (NASDAQ:KMB) shares were trading higher in the premarket session on Thursday after the company reported third-quarter fiscal 2025 results.
Key Figures
The company reported adjusted earnings per share of $1.82, beating the analyst consensus estimate of $1.76.
Quarterly sales of $4.15 billion, flat year over year (Y/Y), surpassed the street view of $4.12 billion.
Sales reflect a 2.2% headwind from the U.S. private label diaper exit. Organic sales rose 2.5% Y/Y, led by 2.4% volume growth in the quarter.
Also Read: Kimberly-Clark To Pay Around $40 Million Over Surgical Gown Designs
Segment Performance
North American net sales decreased 0.8% Y/Y to $2.7 billion in the quarter, due to the exit of the company’s private label diaper business in the U.S.
Meanwhile, International Personal Care net sales increased 1.9% Y/Y to $1.4 billion, with organic sales growth of 2.1% Y/Y.
Bottom Line
Adjusted gross margin was 36.8%, down 170 basis points from the prior year, owing to unfavorable pricing net of cost inflation and higher tariff-related costs.
Adjusted operating profit was $683 million, unchanged from last year, as efficiency gains and lower incentive accruals offset gross margin headwinds.
The net income of equity companies was $46 million, in line with million in the prior year.
Total debt was $7.3 billion as of September 30, down from $7.4 billion as of December 31, 2024.
Kimberly-Clark exited the quarter with cash and equivalents worth $617 million.
“The operating environment remains dynamic, but we continue to execute our strategy with discipline and excellence as we play to win,” said Kimberly-Clark Chairman and CEO Mike Hsu.
The company said its performance was driven by resilient consumer demand, pioneering product innovations, and sustained industry-leading productivity.
Outlook
For 2025, the company expects organic sales to grow roughly in line with the weighted average growth of its categories and markets, currently around 2%.
Kimberly-Clark expects to face a ~100-basis-point headwind from currency translation and a ~290-basis-point impact from the PPE divestiture and U.S. private label diaper exit.
The company expects 2025 adjusted operating profit to grow at a low single-digit rate on a constant-currency basis, with a ~380-basis-point headwind from the PPE divestiture and U.S. private label diaper exit, and an additional ~70-basis-point impact from currency translation.
Kimberly-Clark projects adjusted EPS to grow at a low-to-mid single-digit rate on a constant-currency basis, including a ~320-basis-point headwind from the divestiture and diaper exit.
Price Action: KMB shares were trading higher by 3.43% to $120.72 premarket at last check Thursday.
Read Next:
Photo by JHVEPhoto Shutterstock
