Kimberly-Clark Drops on Q4 Sales

Kimberly-Clark Corp (NYSE:KMB) saw its shares climb mid-week Wednesday, on the latest figures.

The company, manufacturer of Kleenex tissues, among other products, reported fourth-quarter FY21 sales growth of 3% year-on-year, to $4.97 billion, beating the analyst consensus of $4.90 billion.

Organic sales increased 3% as net selling prices rose 2% and product mix increased sales 1%. In North America, organic sales rose 2% in K-C Professional.

Sales from the personal care segment increased 12%, the consumer tissue segment fell 10%, and K-C Professional climbed 2%. Adjusted EPS of $1.30 beat the analyst consensus of $1.25.
Gross profit fell by 14% Y/Y to $1.44 billion. Marketing, research, and general expenses decreased 9% Y/Y to $911 million.

Operating income declined 30% to $521 million, with an operating margin of 10.5%.

Cash provided by operations increased 19.7% to $1.06 billion. The company held $270 million in cash and equivalents as of December 31, 2021.

According to CEO Mike Hsu, “While we expect inflation and supply-chain disruption to persist into 2022, we are committed to recovering margins to pre-pandemic levels over time, and we are optimistic about gradual improvement later in the year.”

The company’s board has approved a 1.8% increase in the quarterly dividend. The quarterly dividend of $1.16 per share will be payable on April 4 to stockholders of record on March 4.

Kimberly-Clark is expecting FY22 sales to increase 1% – 2%. The company sees FY22 EPS of $5.60 – $6.00 versus the consensus of $6.70.

KMB shares are trading lower by $7.08, or 5.1% at $132.42 to begin the trading day on Wednesday.