NEW YORK - Kimberly-Clark Corporation (NYSE:KMB) reported third quarter 2024 results on Thursday, beating earnings estimates but falling short on revenue expectations. The company also adjusted its full-year organic sales growth outlook.
The consumer products giant posted adjusted earnings per share of $1.83, surpassing the analyst consensus of $1.70. However, revenue for the quarter came in at $5 billion, below the $5.06 billion analysts had projected.
Net sales decreased 4% compared to the prior year, impacted by negative foreign currency translation of approximately 3% and the divestiture of the K-C Professional Personal Protective Equipment business, which accounted for about 1% of the decline. Organic sales grew 1%, driven by a 1% increase in pricing.
"Our third quarter results reflect strong execution across the business as we transform our organization," said Kimberly-Clark Chairman and CEO Mike Hsu. He noted that the company delivered organic top-and-bottom-line growth, driven by market share gains and improved productivity.
Adjusted gross margin expanded by 90 basis points YoY to 36.7%, attributed to strong gross productivity gains.
For the full year 2024, Kimberly-Clark now expects organic net sales growth of 3-4%, down from its previous mid-single digit growth forecast. The company cited discrete headwinds from changes in retail inventory levels for the revised outlook.
The company maintained its guidance for adjusted operating profit and adjusted earnings per share to grow at a mid-to-high teens percentage rate on a constant-currency basis.
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