- Kimberly-Clark (KMB, Financial) reported a 6.0% decrease in Q1 2025 net sales to $4.8 billion.
- Adjusted EPS fell 4.0% to $1.93, while operating profit expectations for 2025 were revised down.
- Projected 2025 Adjusted Free Cash Flow was revised to approximately $2 billion due to geopolitical cost pressures.
Kimberly-Clark Corporation (KMB) has released its financial results for the first quarter of 2025, revealing a 6.0% decline in net sales to $4.8 billion compared to the same period last year. This decline includes a 1.6% decrease in organic sales, with the company experiencing a 1.5% decrease in price, rather than volume. The company's diluted earnings per share stood at $1.70, with an adjusted EPS of $1.93, down 4.0% from the previous year.
Key financial metrics for the quarter include a gross margin of 35.8% (adjusted to 36.9%), operating profit of $769 million ($844 million adjusted), and a net interest expense of $57 million. The effective tax rate was recorded at 23.8% (21.4% adjusted). Notably, the company has also revised its outlook for 2025, expecting adjusted operating profit to be flat to positive on a constant-currency basis, a significant downgrade from prior expectations of high single-digit growth.
The company's decision to revise its 2025 outlook stems from increased cost pressures attributable to an uncertain geopolitical landscape, which are expected to impact the global supply chain. Consequently, Kimberly-Clark has adjusted its free cash flow projection for the year to approximately $2 billion, down from previous estimates exceeding $2 billion.
In North America, Kimberly-Clark reported net sales of $2.7 billion, a decrease of 3.9%, yet achieved a 1.3% increase in operating profit to $676 million despite a 0.6% decline in organic sales. The company attributes this growth in profit to strong productivity savings and effective cost management across segments.
