Kimberly-Clark Corporation (NYSE: KMB) announced its third-quarter 2024 results on Thursday, exceeding earnings expectations but falling short on revenue projections. The company also adjusted its full-year forecast for organic sales growth.
The consumer goods company reported adjusted earnings per share of $1.83, beating the analyst consensus of $1.70. However, revenue for the quarter came in at $5 billion, below the projected $5.06 billion.
Net sales declined by 4% compared to the previous year, primarily due to negative foreign currency translation of around 3% and the divestiture of the K-C Professional Personal Protective Equipment business, which contributed to a 1% decrease. Organic sales increased by 1%, driven by a 1% rise in pricing.
“Our third-quarter performance demonstrates strong execution across the business as we continue to transform our organization,” said Kimberly-Clark Chairman and CEO Mike Hsu. He highlighted the company’s achievement of organic growth in both sales and earnings, driven by gains in market share and enhanced productivity.
Adjusted gross margin expanded by 90 basis points year-over-year to 36.7%, attributed to significant gains in gross productivity.
For the full year 2024, Kimberly-Clark now anticipates organic net sales growth of 3-4%, revised from its previous forecast of mid-single-digit growth. The company mentioned specific challenges related to changes in retail inventory levels for the updated outlook.
The company reiterated its guidance for adjusted operating profit and adjusted earnings per share to increase at a mid-to-high teens percentage rate on a constant-currency basis.
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