Kimberly-Clark reported sales of $5.0 billion (€4.6 billion) in the fourth quarter of 2022, a performance it says is level with the same period a year ago.
Fourth quarter operating profit stood at $712 million (€653 million) in 2022, compared to $521 million ( €478 million) in Q4 2021.
Kimberly Clark noted that it benefited from higher net selling prices in the period, favourable product mix and $115 million (€105 million) of cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) program.
Unfavourable Foreign Currency Effects
The US-based personal care products manufacturer says its performance was impacted by $245 million (€225 million) of higher input costs as well as lower volumes and the associated fixed cost under absorption.
Kimberly Clark noted that unfavourable foreign currency effects and higher marketing, research and general expense also reduced operating profit in the quarter.
"Kimberly-Clark delivered 7% organic growth in 2022 and an average of 4% organic growth on a three-year basis," said chairman and CEO Mike Hsu.
"Our growth strategy is working with the support of excellent execution by our teams around the world and investments in our strong brands and commercial capabilities."
Dynamic Operating Environment
"I'm especially proud of how our teams navigated in what continues to be a dynamic operating environment," Hsu added. "We mitigated inflationary pressures with successful revenue growth management initiatives and maintained cost discipline while continuing to invest in our business."
The company issued key planning and guidance assumptions for full-year 2023. The outlook reflects assumptions subject to change given the high level of volatility in the macro environment.
Kimberly-Clark anticipates net sales increase 0% to 2%, and organic sales growth of 2% to 4%. It anticipates operating profit to be up in mid-to-high single digits versus adjusted operating profit in 2022.
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.