Kimberly-Clark Outlines 2025 Financial Expectations with 2% Organic Growth and Negative Currency Impact.

Kimberly-Clark Corporation has provided financial guidance for 2025, expecting 2% growth in the categories and countries it competes in. The company's organic sales growth is expected to outpace this, while reported net sales will be negatively impacted by 100 basis points from currency translation and 290 basis points from the PPE divestiture and exit of the private label diaper business in the US.

Kimberly-Clark Corporation, a global leader in personal care products, has released its financial results for the second quarter of 2025. The company reported net sales of $4.2 billion, a decrease of 1.6% compared to the same period last year. The decline was primarily due to divestitures, business exits, and unfavorable currency translation. However, organic sales grew by 3.9%, driven by a 5.0% increase in volume.

Gross margin for the quarter was 35.0%, inclusive of charges related to the 2024 Transformation Initiative. Excluding these charges, the adjusted gross margin was 36.9%, down 180 basis points from the previous year. Diluted earnings per share (EPS) attributable to Kimberly-Clark were $1.53, while adjusted EPS were $1.92, a decrease of 2.0% from the prior year.

The company's performance was bolstered by resilient consumer demand and the introduction of innovative new products. North America net sales were $2.7 billion, a decrease of 1.9%, while International Personal Care (IPC) net sales increased by 0.4% to $1.4 billion.

Kimberly-Clark continued its strategic initiatives under the 2024 Transformation Initiative, aimed at creating a more agile and focused operating structure. Year-to-date, the company returned $944 million to shareholders through dividends and repurchases of common stock. Total debt was reduced to $7.2 billion as of June 30, 2025, down from $7.4 billion at the end of 2024.

Mike Hsu, Chairman and CEO of Kimberly-Clark, commented, "Our second quarter results are indicative of the exceptional progress we are making executing our Powering Care strategy. Despite a dynamic operating environment, we are well-positioned to deliver a strong second year of our transformation."

Looking ahead, Kimberly-Clark has adjusted its full-year outlook to reflect the reporting of the International Family Care and Professional (IFP) business as discontinued operations. The company expects 2025 organic sales growth to outpace the weighted average growth in its categories and countries, with adjusted operating profit and EPS expected to grow at a low-to-mid single-digit rate on a constant-currency basis.

Reference List:
[1] https://www.tradingview.com/news/tradingview:6d346bffaa316:0-kimberly-clark-q2-2025-financial-results/
[2] https://www.prnewswire.com/news-releases/kimberly-clark-announces-second-quarter-2025-results-raises-2025-outlook-302519234.html