Tue, Apr 22, 3:38 PM (21 days ago)
**Kimberly-Clark Corporation (KMB) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $4,840 million, down 6.0% YoY due to unfavorable currency impacts, divestitures, and lower organic sales. - **Gross Profit:** $1,733 million, down 9.3% YoY, with a gross margin of 35.8%, down 130 basis points. - **Operating Profit:** $769 million, down 9.8% YoY, including $75 million in 2024 Transformation Initiative charges. - **Net Income:** $567 million, down 12.4% YoY, with diluted EPS at $1.70, down 11.0% YoY. - **Cash Flow:** $327 million from operations, down from $438 million YoY, due to lower operating profit and changes in working capital. **Segment Performance:** - **North America (NA):** Net sales down 3.9% to $2,666 million, operating profit up 1.3% to $676 million. - **International Personal Care (IPC):** Net sales down 8.9% to $1,383 million, operating profit down 19.8% to $194 million. - **International Family Care & Professional (IFP):** Net sales down 7.7% to $791 million, operating profit down 3.6% to $106 million. **Trends and Uncertainties:** - **2024 Transformation Initiative:** Aiming to reduce structural costs and improve focus on growth, with $534 million in cumulative pre-tax charges through Q1 2025. - **Geopolitical Risks:** Ongoing war in Ukraine and U.S. trade policy changes pose risks to supply chain, commodity costs, and consumer spending. - **Currency Fluctuations:** Unfavorable currency impacts affected net sales and operating profit across segments. **Future Operations Impact:** - **Cost Savings:** Expected to achieve $3.0 billion in gross productivity savings and $200 million in SG&A savings by the end of 2026. - **Capital Spending:** Anticipated to be $1.0 to $1.2 billion for the full year, including incremental spending from the 2024 Transformation Initiative. - **Share Repurchases:** Repurchased 458,000 shares in Q1 2025, totaling $61 million. **Conclusion:** Kimberly-Clark's Q1 2025 results reflect challenges from currency impacts, divestitures, and strategic initiatives. The company is focused on cost savings and operational improvements through the 2024 Transformation Initiative, while navigating geopolitical and market uncertainties.