Kimberly-Clark Announces Second Quarter 2023 Results

Net sales up 1 percent, organic sales grew 5 percent
Revenue Growth Management program and productivity drove continued margin recovery
Company raises 2023 outlook

DALLAS, July 25, 2023 - Kimberly-Clark Corporation (NYSE: KMB) today reported second quarter 2023 results. Comparisons are made versus the prior year period, unless otherwise noted.

We delivered another quarter of strong organic sales growth and gross margin expansion," said Chairman and CEO Mike Hsu. "Our growth strategy is working, and given the strength of our first-half results, we're raising our full-year outlook."

Hsu added, "Continued improvement in gross margin positions us well to invest in superior brand value propositions, including innovation and digital leadership, which will help grow our market shares over time and deliver balanced and sustainable growth for long-term shareholder value."

Quarter Highlights

Delivered net sales of $5.1 billion, up 1 percent, with organic sales growth of 5 percent.
Gross margin was 33.7 percent, up 350 basis points; adjusted gross margin was 34.0 percent, up 380 basis points versus the prior year, driven by favorable net revenue realization and productivity, offsetting inflation.
Diluted earnings per share were $0.30, primarily driven by $1.36 per share in non-cash charges for the impairment of intangible assets; on an adjusted basis, earnings per share were $1.65.
Raised 2023 outlook for organic growth to 3% - 5%, and for adjusted earnings per share growth of 10% - 14%, with adjusted operating margin up 150 basis points at the midpoint versus last year.

Strategic Highlights

Completed the sale of its Brazil tissue assets in June.
Launched Huggies' new marketing campaign, Baby Butts, celebrating Huggies' unique design protection for babies on the move.
Received top honors at the Cannes Lion festival for two brand campaigns in Latin America: The Story of Lea Campos by Intimus, which honors one of the first female football referees in Brazil and #NormalicemosLoNormal by Kotex, which fights menstrual stigma.
Published Global 2022 Sustainability Report, which highlights the company's progress toward its 2030 ambitions, with the goal of improving the lives of 1 billion people in underserved and vulnerable communities while driving product innovation, human capital initiatives and reducing its environmental footprint.
Recognized in Australia as one of the 2023 Most Sustainable Companies for the successful launch of The Nappy Loop, the first recycling program of its kind.
Recognized by U.S. News and World Report for being one of the Best Places to Work in the U.S.