Kimberly-Clark Announces Third Quarter 2022 Results

Executive Summary

• Third quarter 2022 net sales of $5.1 billion increased 1 percent compared to the year-ago period, including organic sales growth of 5 percent.
• Diluted net income per share for the third quarter was $1.38 in 2022 and $1.39 in 2021.
• Third quarter adjusted earnings per share were $1.40 in 2022, down 14 percent compared to $1.62 in 2021. Adjusted earnings per share exclude certain items described later in this news release.
• Diluted net income per share for 2022 is expected to be $5.67 to $6.10.
• The company continues to target full-year 2022 organic sales growth of 5 to 7 percent and expects adjusted earnings per share at the lower end of $5.60 to $6.00 range

"Our third quarter results reflect strong execution by our teams around the world in the face of a challenging macro environment," said Chairman and CEO Mike Hsu. "We delivered organic sales growth across all our segments and continued to provide our consumers with value-inspired innovation."

Hsu continued, "We continue to execute our plan to restore margins over time and are seeing progress with sequential margin improvement this quarter. As we navigate persistent input cost inflation, we're focused on driving our growth strategy, serving consumers, customers and communities while living our purpose of Better Care for a Better World."

Third Quarter 2022 Operating Results
Sales of $5.1 billion in the third quarter of 2022 increased 1 percent compared to the year-ago period. Organic sales increased 5 percent as net selling prices rose 9 percent and product mix increased sales 1 percent while volumes declined 5 percent. Changes in foreign currency exchange rates reduced sales 4 percent. In North America, organic sales decreased 2 percent in consumer products and increased 5 percent in K-C Professional. Outside North America, organic sales rose 11 percent in both developing and emerging (D&E) and developed markets.

Third quarter operating profit was $655 million in 2022 and $657 million in 2021. Excluding the charges related to the 2018 Global Restructuring Program, 2021 adjusted operating profit was $745 million.

Results were impacted by $360 million of higher input costs. Lower volumes, higher marketing, research and general expense as well as unfavorable foreign currency effects reduced operating profit in the quarter. Results benefited from higher net selling prices and $80 million of cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) program. 

The third quarter effective tax rate was 22.4 percent in 2022 and 21.6 percent in 2021. The third quarter adjusted effective tax rate was 22.3 percent in 2022 and 20.9 percent in 2021. Kimberly-Clark's share of net income of equity companies in the third quarter was $29 million in 2022 and $21 million in 2021.

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Source: Kimberly-Clark

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