Kimberly-Clark Corporation (NYSE: KMB) reported its fourth-quarter and full-year 2024 results, showcasing the strength of its innovation-led growth model. In the fourth quarter, the company delivered net sales of $4.9 billion, down 0.8 percent, with organic sales growth of 2.3 percent. The gross margin was 34.0 percent, while adjusted gross margin was 35.4 percent, up 50 basis points versus the prior year. Operating profit for the quarter was $548 million, while adjusted operating profit was $684 million, up 2.1 percent versus the prior year. Diluted earnings per share were $1.34, and adjusted earnings per share were $1.50, down 0.7 percent versus the prior year.
For the full year 2024, net sales were $20.1 billion, 1.8 percent lower than the prior year, with organic sales growing by 3.2 percent. The gross margin was 35.8 percent, and adjusted gross margin was 36.5 percent, a significant expansion of 200 basis points versus the prior year. Operating profit was $3.2 billion, including gains from the divestiture of the company's personal protective equipment (PPE) business and charges related to the company's 2024 transformation initiative. Adjusted operating profit was $3.2 billion, an increase of 9.4 percent versus the prior year.
In terms of segment results, North America net sales decreased 0.5 percent in the fourth quarter, with organic sales increasing by 1.1 percent. International Personal Care (IPC) net sales decreased 1.3 percent in the quarter, while organic sales were up 5.3 percent. International Family Care & Professional (IFP) net sales decreased 1.2 percent in the quarter, while organic sales increased by 0.7 percent.
Looking ahead to 2025, Kimberly-Clark expects organic sales growth to outpace the weighted average growth in the categories and countries it competes in, which are currently growing at approximately two percent. Reported net sales are forecast to reflect a negative impact of approximately 300 basis points from currency translation as well as a negative 240 basis point impact from its PPE divestiture and the exit of the company's private label diaper businesses in the US. Adjusted operating profit is expected to grow at a high single-digit rate on a constant-currency basis, including a negative 320 basis point impact from the PPE divestiture and the exit of the company's private label diaper businesses in the US.
In 2024, the company returned $2.6 billion to shareholders through dividends and share repurchases and completed share repurchases of 7.2 million shares at a cost of $1.0 billion. Total debt was $7.4 billion as of December 31, 2024, compared to $8.0 billion at the end of 2023.
These results illustrate Kimberly-Clark's solid performance in 2024 and its positive outlook for continued organic growth and operating momentum in 2025 as the transformation progresses. Following these announcements, the company's shares moved 0.5%, and are now trading at a price of $132.04. If you want to know more, read the company's complete 8-K report here.
