Kimberly-Clark Corporation has recently released its 10-K report, offering an in-depth look into the company's financial performance and operations. The company, headquartered in Dallas, Texas, operates through three segments: Personal Care, Consumer Tissue, and K-C Professional. Kimberly-Clark's product portfolio includes well-known brands such as Huggies, Pull-Ups, Kotex, Kleenex, Scott, and Depend.
The 10-K report discusses the company's 2024 results, with net sales of $20.1 billion, a 1.8% decline primarily due to unfavorable currency impacts and divestitures. However, organic sales increased by 3.2%, driven by higher pricing and volume and mix gains. Operating profit reached $3.2 billion, marking a 36.9% increase, while net income attributable to Kimberly-Clark stood at $2.5 billion, a 44.3% increase. Diluted earnings per share were reported at $7.55, reflecting a 44.9% increase.
Kimberly-Clark also outlined its 2024 Transformation Initiative, designed to sharpen its strategic focus through a new operating model. The initiative aims to improve the company's focus on growth and reduce its structural cost base by realigning its internal operating and management structure.
Additionally, the report highlights the company's acquisition and divestiture activity. In 2024, Kimberly-Clark completed the sale of its personal protective equipment business for total consideration of $635, recognizing a pre-tax gain of $566. The company also completed the sale transaction of its Neve tissue brand and related consumer and professional tissue assets in Brazil, recognizing a gain of $74 pre-tax.
The report delves into the business environment and trends that have impacted Kimberly-Clark's operations. Factors such as birth rate trends, competition, pricing, operating costs, evolving consumer product and shopping preferences, volatility of global markets, and climate change are discussed as key elements affecting the company's performance.
Looking ahead, Kimberly-Clark aims to continue executing its Powering Care growth strategy, focusing on accelerating pioneering innovation, optimizing its margin structure, and wiring its organization for growth. The company also emphasizes its commitment to financial discipline and capital allocation, prioritizing investments to drive growth, dividend increases, value-accretive acquisitions, and share repurchases. Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $135.04. If you want to know more, read the company's complete 10-K report here.
