American firm Kimberly-Clark's sales at $10.2 bn in H1 FY24

American multinational personal care products company Kimberly-Clark has reported sales of $10.2 billion in the first half of fiscal 2024 (H1 FY24), marking a 1 per cent decrease. However, organic sales saw a 5 per cent growth.

Operating profit for the first half was $1.5 billion, which included $235 million in costs related to the company's transformation efforts. Despite these costs, adjusted operating profit reached $1.7 billion, a 15 per cent increase from $1.5 billion in the previous year.

Diluted earnings per share (EPS) for H1 FY24 were $3.52, a significant rise from $1.97 in the same period last year. Adjusted EPS year-to-date was $3.97, compared to $3.32 in the previous year, reflecting a strong improvement, the company said in a press release.

In the second quarter of fiscal 2024 (Q2 FY24), net sales were $5.0 billion, a 2 per cent decline, although organic sales grew by 4 per cent year-over-year. The reported gross margin for Q2 FY24 was 36.0 per cent, with an adjusted gross margin of 36.9 per cent. This represents an increase of 290 basis points from the previous year, driven by organic net sales growth and gross productivity gains.

Diluted EPS for the second quarter was $1.61, while adjusted EPS was $1.96, up 19 per cent from the previous year, despite a $0.12 headwind from currency translation.

The personal care segment reported sales of $2.7 billion, consistent with the year-ago period. The second quarter operating profit for this segment increased by 14 per cent, reaching $540 million.

Sales in the consumer tissue segment were $1.5 billion, a 4 per cent decrease from the previous year. However, the second quarter operating profit saw a substantial increase of 23 per cent to $245 million.

The KCP segment experienced a 5 per cent decrease in sales, totalling $841 million. The second quarter operating profit for this segment decreased slightly by 1 per cent, amounting to $186 million.

"I am very proud of how our teams around the world have advanced our new operating model and delivered high-quality, top and bottom-line results in the first half of this year.  We have made strong progress while navigating dynamic consumer and retail environments," said Kimberly-Clark chairman and CEO Mike Hsu.

Fibre2Fashion News Desk (DP)