Kimberly-Clark 3Q 2020 Results: Net Sales up 1 percent from Year ago to $4.7 Billion

Kimberly-Clark Corporation has reported third quarter 2020 results.

Chairman and CEO Mike Hsu said, "Kimberly-Clark teams around the world are managing our near-term operating priorities extremely well, with strong focus on employee health and safety and supply chain excellence during this unprecedented time period. At the same time, we are significantly increasing our growth investments for future success, our market share positions are healthy overall and we are on track to achieve excellent financial results this year."

Sales of $4.7 billion in the third quarter of 2020 increased 1 percent compared to the year-ago period. Organic sales increased 3 percent, while changes in foreign currency exchange rates reduced sales 2 percent. Volumes rose 2 percent and the combined impact of changes in net selling prices and product mix increased sales 1 percent. In North America, organic sales increased 8 percent in consumer products but fell 15 percent in K-C Professional. Outside North America, organic sales rose 2 percent in developing and emerging markets and 3 percent in developed markets.

Consumer Tissue Segment
Third quarter sales of $1.6 billion increased 9 percent. Volumes increased 10 percent and net selling prices rose slightly, while product mix was unfavorable by 1 percent. Changes in currency rates reduced sales slightly. The volume increase was driven by increased shipments in North America and developed markets to support higher consumer and customer demand related to the global outbreak of COVID-19. Third quarter operating profit of $318 million increased 20 percent. Results benefited from organic sales growth, cost savings and lower input costs. The comparison was impacted by increased advertising spending, other manufacturing cost increases, higher general and administrative costs and unfavorable currency effects.

Sales in North America increased 11 percent. Volumes rose 11 percent and net selling prices improved 2 percent, while product mix was down 2 percent. Volumes increased high-single digits to low-double digits in all major product categories.

Sales in developing and emerging markets decreased 4 percent including a 7 point negative impact from changes in currency rates. Volumes rose 3 percent and product mix improved 2 percent, while net selling prices fell 2 percent.

Sales in developed markets outside North America increased 17 percent. Volumes rose 14 percent, driven by South Korea and Western/Central Europe, while net selling prices fell 1 percent. Changes in currency rates increased sales 4 percent.

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