Kimberly-Clark Expects Growth in 2022 Despite Inflation, Supply-Chain Challenges
January 26 2022 - 8:42AM
Dow Jones News
By Will Feuer
Kimberly-Clark Corp. said it sees sales and earnings rising in
2022, despite an expectation that inflation and supply-chain
challenges will continue to hit the maker of Huggies diapers,
Cottonelle toilet paper and other items.
The company on Wednesday said it expects sales to rise between
1% and 2% in fiscal 2022, including organic sales growth of 3% to
4%.
The company also expects to post earnings per share of between
$5.60 and $6, compared with 2021 earnings of $5.35 a share.
That forecast includes the expectation that key cost inputs are
expected to increase by $750 million to $900 million.
"Costs are projected to increase or remain elevated for most
inputs including purchased raw materials as well as for
distribution and energy," the company said in a statement.
The company said it is also factoring in a year-over-year
increase in marketing, research and general spending, in part
driven by inflation.
"Looking ahead, we will continue to invest in innovation,
supporting our brands, and accelerating topline growth," Chairman
and Chief Executive Mike Hsu said. "While we expect inflation and
supply-chain disruption to persist into 2022, we are committed to
recovering margins to pre-pandemic levels over time, and we are
optimistic about gradual improvement later in the year."
Kimberly-Clark said it also expects to save between $300 million
and $350 million from its FORCE, or Focused On Reducing Costs
Everywhere, program, which saved the company $115 million in costs
for the fourth quarter of 2021.
The company's guidance anticipates an effective tax rate of 22%
to 24%.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
January 26, 2022 08:27 ET (13:27 GMT)
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