Kimberly-Clark Corp (KMB) Raises 2023 Outlook Following Strong Q3 Results
Kimberly-Clark Corp (NYSE:KMB) reported a 2% increase in net sales, reaching $5.1 billion in Q3 2023.
The company's gross margin rose to 35.8%, up 530 basis points from the prior year.
Adjusted earnings per share were $1.74, marking a 24% increase compared to the previous year.
Kimberly-Clark Corp (NYSE:KMB) has raised its 2023 outlook for organic growth to 4% - 5%, and for adjusted earnings per share growth of 15% - 17%.
On October 24, 2023, Kimberly-Clark Corp (NYSE:KMB) announced its third-quarter results for 2023. The company reported a 2% increase in net sales, reaching $5.1 billion, with organic sales growth of 5%. The gross margin was 35.8%, up 530 basis points from the prior year, driven by favorable net revenue realization and productivity. Adjusted earnings per share were $1.74, marking a 24% increase compared to the previous year.
Financial Highlights
Kimberly-Clark Corp (NYSE:KMB) delivered strong performance across all segments, with a notable increase in net sales and gross margin. The company's diluted earnings per share were $1.73, while adjusted earnings per share were $1.74, up 24% versus the prior year. Based on the year-to-date performance, the company has raised its full-year outlook.
Segment Performance
The Personal Care segment reported sales of $2.7 billion, a 3% increase, with organic sales increasing by 7%. The Consumer Tissue segment reported sales of $1.6 billion, a decrease of 1%, but with organic growth of 2%. The K-C Professional segment reported sales of $854 million, a 2% increase, with organic growth of 4%.
Year-to-Date Results
For the first nine months of the year, sales of $15.5 billion increased 2%, with organic sales up 5%. Gross margin improved by 400 basis points to 34.2%, and adjusted gross margin improved by 410 basis points to 34.3%. Year-to-date operating profit was $1.7 billion in 2023 versus $2.0 billion in 2022.
2023 Outlook
Kimberly-Clark Corp (NYSE:KMB) updated its full-year expectations for 2023, raising its outlook for organic sales growth to 4% - 5%, and for adjusted earnings per share growth of 15% - 17%. The company also expects an adjusted operating margin up 170 basis points at the midpoint versus last year.
Kimberly-Clark Corp (NYSE:KMB) continues to demonstrate strong performance, driven by its growth strategy and ongoing productivity programs. The company's robust Q3 results and positive outlook for 2023 reflect its commitment to delivering superior value to its consumers and sustainable growth for its shareholders.
This article first appeared on GuruFocus.
