US’ Kimberly-Clark, a multinational personal care products company, has recorded sales of $20.4 billion in fiscal 2023 (FY23), marking a 1 per cent increase from the previous year, with organic sales witnessing a more robust 5 per cent growth.

The gross margin saw a significant improvement, rising by 360 basis points to reach 34.4 per cent. The adjusted gross margin experienced a similar upward trajectory, improving by 370 basis points to settle at 34.5 per cent. Despite these positive developments, the operating profit declined to $2.34 billion in FY23, down from $2.68 billion in 2022. However, the adjusted operating profit painted a brighter picture, climbing to $2.96 billion in 2023, compared to $2.62 billion in the previous year, the company said in a media release.

Earnings per share (EPS) for FY23 stood at $5.21, showing a decrease from $5.72 in the last year. The adjusted EPS for FY23 was $6.57, a notable increase from $5.63 in FY22.

In terms of product segments, the personal care division grew by 1 per cent, with an organic sales increase of 5 per cent, indicating broad-based growth across various regions. The consumer tissue segment also saw a positive trend, with sales up by 1 per cent and an organic increase of 3 per cent. Kimberly-Clark Professional (KCP) reported a 5 per cent increase in sales, driven by a 7 per cent rise in organic sales.

For the fourth quarter of fiscal year 2023 (Q4 FY23), Kimberly-Clark delivered net sales of $5 billion, consistent with the previous year, and achieved an organic sales growth of 3 per cent. The gross margin for the quarter was 34.9 per cent, up 210 basis points from the prior year, attributed to favourable net revenue realization and productivity.

However, the diluted EPS for the quarter was $1.50, and the adjusted EPS was $1.51, marking a 2 per cent decrease compared to the previous year.

The personal care segment saw a 2 per cent increase in quarterly sales to $2.6 billion, with organic sales growing by 6 per cent. Conversely, consumer tissue sales decreased by 1 per cent to $1.5 billion, with organic sales remaining steady, reflecting price gains offset by volume decreases. KCP sales declined by 3 per cent to $816 million, with a 1 per cent organic decrease, though the 2-year average organic growth in Q4 was 8 per cent.

"We had a solid finish to 2023, delivering strong organic growth as well as cost and earnings recovery above our initial expectations," said Kimberly-Clark chairman and CEO Mike Hsu. "Our fourth quarter results demonstrate topline momentum with more balanced growth across volume, mix and price led by strong personal care results.”