Kimberly-Clark Q2 results strong, driven by innovation-led volume growth, cost management.

• Kimberly-Clark reports Q2 2025 results driven by innovation, cost management, and commercial execution. • Strong organic sales growth, highest volume growth in five years. • Powering Care transformation solidifies the company's position in the market. • Full-year outlook reflects a second year of success for the transformation strategy. • Resilient consumer demand and effective cost management contribute to the strong results. • The company's durable brands and innovation investments have enabled it to maintain leading market share.

Kimberly-Clark Corporation (Nasdaq: KMB) has reported its second-quarter 2025 results, showcasing robust performance driven by innovation-led volume growth, excellent commercial execution, and effective cost management in a dynamic operating environment. The company's Powering Care transformation strategy continues to solidify its position in the market.

Key highlights from the quarter include net sales of $4.2 billion, down 1.6 percent year-over-year (YoY), primarily due to divestitures and business exits, and unfavorable currency translation. Organic sales growth reached 3.9 percent, with volume growth of 5.0 percent, the highest in five years. This growth was partially offset by price increases of 1.2 percent. Gross margin was 35.0 percent, inclusive of charges related to the 2024 Transformation Initiative, resulting in an adjusted gross margin of 36.9 percent, down 180 basis points from the prior year.

Diluted earnings per share (EPS) attributable to Kimberly-Clark were $1.53, down 2.0 percent from the prior year, to $1.92 on an adjusted basis. Operating profit was $592 million, compared to $539 million in the prior year, driven by gross profit headwinds partially offset by planned lower marketing, research, and general expenses.

The company's durable brands and innovation investments have enabled it to enhance and maintain leading market share positions across categories and price tiers. Mike Hsu, Kimberly-Clark Chairman and CEO, stated, "Our second quarter results are indicative of the exceptional progress we are making executing our Powering Care strategy. This was a very active quarter and one of the strongest in our recent history."

Looking ahead, Kimberly-Clark's full-year outlook reflects solid performance in the second year of its Powering Care transformation. The company is well-positioned to deliver a strong second year of its transformation, driven by resilient consumer demand and effective cost management.

References:
[1] https://www.prnewswire.com/news-releases/kimberly-clark-announces-second-quarter-2025-results-raises-2025-outlook-302519234.html