Kimberly-Clark has reported net sales of $4.61 billion in the second quarter of 2020, up slightly from $4.59 billion in the same period last year.
However, the company's organic sales increased by 4% during this period.
In North America, organic sales of the company’s consumer products increased by 12%, while K-C Professional reported a 3% decline.
Organic sales rose 3% in developed markets outside of North America. Developing and emerging markets saw a 3% drop in organic sales, mainly driven by its performance in Latin America.
The adjusted operating profit amounted to $1.01 billion for the quarter, up from $789 million in 2019.
It was driven by organic sales growth and cost savings measures initiated by the company, including $120 million in savings from FORCE (Focused On Reducing Costs Everywhere) programme and another $55 million from the 2018 Global Restructuring Programme, the company added.
'Focus On Health And Safety'
Chairman and chief executive officer of Kimberly-Clark, Mike Hsu, said, "We continue to focus on protecting the health and safety of our employees and consumers and operating our supply chain with excellence to meet the needs of our consumers and customers during this unprecedented time period.
“I am extremely proud of how our teams are managing these near-term operating priorities. At the same time, our underlying business momentum is good, our market share positions are healthy overall and we are delivering excellent financial results."
Divisional Performance
The company’s personal care division saw a 2% decline in sales to $2.2 billion in the second quarter, while operating profit amounted to $519 million, up 7% year-on-year.
The product mix improved 2% and volumes and net selling prices each increased slightly, the company added.
The consumer tissue segment reported a 12% growth in second-quarter sales amounting to $1.6 billion.
Sales in K-C Professional amounted to $700 million, down 12%, while volumes declined by 16%, reflecting the challenging global economic and business conditions following the outbreak of COVID-19.
Outlook
Commenting on the company’s outlook, Hsu said that the company is restoring its forward-looking guidance.
“We have increased our 2020 outlook for organic sales and earnings compared to our original plan. We are also further increasing our growth investments to position us for future success.
“We continue to execute well, operate our business with a balanced approach and remain very optimistic about our opportunities to create shareholder value."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.