Kimberly-Clark Corporation, a leading global manufacturer of personal care products, has reported a slight dip in sales for the first quarter of fiscal 2024 (Q1 FY24), reaching $5.1 billion, a 1 per cent decrease compared to the same period last year. Despite the overall decline, the company saw a robust increase in organic sales, which grew by 6 per cent. This growth was attributed to a 4 per cent rise in prices, a 1 per cent improvement in product mix, and a 1 per cent increase in volume.

Regionally, North American organic sales saw a moderate increase of 3 per cent compared to the previous year. However, the standout performance came from developing and emerging markets, where organic sales surged by 15 per cent. In contrast, developed markets experienced a decrease in organic sales by 2 per cent, the company said in a press release.

The company's gross margin saw a significant improvement, expanding by 390 basis points to reach 37.1 per cent, supported by organic growth. The operating profit for the quarter was $853 million, which included $45 million in costs associated with the company's ongoing transformation initiative. This figure marks an improvement from last year's $787 million. After adjustments, the operating profit increased by 14 per cent.

Net interest expenses for the quarter were reported at $57 million, down from $66 million in the prior-year period. Diluted earnings per share (EPS) also saw an uplift, increasing by 14 per cent to $1.91 on a reported basis.

In the personal care segment, sales held steady at $2.7 billion, identical to the previous year, while organic sales in this segment increased by 10 per cent. The operating profit in this segment rose by 12 per cent to $545 million.

The consumer tissue segment, however, faced a 2 per cent decline in sales, totalling $1.6 billion, despite a 6 per cent organic growth in North America. Nevertheless, the operating profit for this segment increased significantly by 21 per cent to $290 million.

The K-C Professional (KCP) segment saw sales decrease by 3 per cent to $823 million. However, organic sales in this segment grew by 2 per cent. The operating profit for KCP increased by 18 per cent to $188 million, driven by gross productivity gains and organic sales growth.

"Our powerhouse pipeline of innovation drove sequentially stronger gains from volume-plus-mix. We continued our strong productivity momentum through our efforts to optimise our margin structure, and we are making good progress focusing our enterprise as we advance the implementation of our new operating model. We're excited about our opportunities to capitalise on this momentum on a global level, enabling us to deliver long-term value for our stakeholders," said Kimberly-Clark chairman and CEO Mike Hsu.