DALLAS, Jan. 25,
2023 /PRNewswire/ -- Kimberly-Clark Corporation
(NYSE: KMB) today reported year-end 2022 results and provided its
2023 outlook.
Executive Summary
- Fourth quarter 2022 net sales of $5.0
billion, even with the year-ago period, including organic
sales growth of 5 percent. Full-year 2022 net sales of $20.2 billion increased 4 percent, with organic
sales up 7 percent.
- Diluted net income per share for the fourth quarter was
$1.50 in 2022 and $1.06 in 2021. Full-year diluted net income per
share was $5.72 in 2022 and
$5.35 in 2021.
- Fourth quarter adjusted earnings per share were $1.54 in 2022, up 18 percent compared to
$1.30 in 2021. Adjusted earnings per
share exclude certain items described later in this news
release.
- Full-year adjusted earnings per share were $5.63 in 2022, down 9 percent compared to
$6.18 in 2021.
- Net sales in 2023 are expected to increase 0 to 2 percent,
including organic sales growth of 2 to 4 percent. Diluted earnings
per share is expected to increase 2 to 6 percent, driven by an
operating profit increase in the mid-to-high single digits, both
versus adjusted results in 2022.
- The company's Board of Directors has approved a 1.7 percent
increase in the quarterly dividend, the 51st consecutive
annual increase.
"Kimberly-Clark delivered 7 percent organic growth in 2022 and
an average of 4 percent 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."
Hsu continued, "I'm especially proud of how our teams navigated
in what continues to be a dynamic operating environment. We
mitigated inflationary pressures with successful revenue growth
management initiatives and maintained cost discipline while
continuing to invest in our business."
"In 2022, we also marked Kimberly-Clark's 150th
anniversary – a significant milestone for the company. We're proud
of our heritage of category defining innovation rooted in providing
care for our consumers. As we look to the future, we will continue
to drive our strategy to deliver profitable growth for long-term
value creation as we fulfill our purpose of Better Care for a
Better World."
Fourth Quarter 2022 Operating Results
Sales of
$5.0 billion in the fourth quarter of
2022 were even with the year-ago period. Organic sales increased
5 percent as net selling prices rose approximately 10 percent
and product mix increased sales 1 percent while volumes declined 7
percent. Changes in foreign currency exchange rates reduced sales 5
percent. In North America, organic
sales increased 1 percent in consumer products and increased 18
percent in K-C Professional. Outside North America, organic
sales rose 3 percent in developing and emerging (D&E) markets
and 11 percent in developed markets.
Fourth quarter operating profit was $712 million in 2022
and $521 million in 2021. Excluding
the charges related to the 2018 Global Restructuring Program, 2021
adjusted operating profit was $611
million.
Results benefited from higher net selling prices, favorable
product mix and $115 million of cost
savings from the company's FORCE (Focused On Reducing Costs
Everywhere) program. The comparison was impacted by
$245 million of higher input costs as well as lower volumes
and the associated fixed cost under absorption. Unfavorable foreign
currency effects and higher marketing, research and general expense
also reduced operating profit in the quarter.
The fourth quarter effective tax rate was 22.5 percent in
2022 and 20.9 percent in 2021. The fourth quarter adjusted
effective tax rate was 22.6 percent in 2022 and 21.9 percent
in 2021. Kimberly-Clark's share of net income of equity companies
in the fourth quarter was $35 million in 2022 and $10 million in 2021.
Cash Flow and Balance Sheet
Cash provided by
operations in the fourth quarter was $991 million in 2022 and
$1,062 million in 2021. Full-year
cash provided by operations was $2,733
million in 2022 compared to $2,730
million in 2021. Capital spending for the fourth quarter was
$197 million in 2022 and $273 million in 2021. Full-year capital spending
was $876 million in 2022 and
$1,007 million in 2021.
Fourth quarter share repurchases were 0.2 million shares at a
cost of $25 million, bringing
full-year repurchases to 0.8 million shares at a cost of
$100 million. Total debt was
$8.4 billion at the end of 2022 and
$8.6 billion at the end of 2021.
Fourth Quarter 2022 Business Segment Results
Personal
Care Segment
Fourth quarter sales of $2.6 billion
decreased 3 percent, including organic sales growth of 2
percent. Changes in foreign currency exchange rates reduced
sales by 5 percent. Net selling prices increased 7 percent and
product mix improved 2 points while volumes declined 7 percent. The
planned exit of a private label contract earlier this year and
retailer inventory changes accounted for a 2 point headwind to
global Personal Care sales.
Fourth quarter operating profit of $423
million was even with year-ago. Results benefited from
higher net selling prices, favorable product mix and cost savings.
The comparison was impacted by input cost inflation, lower volumes
and associated fixed cost under absorption, higher marketing,
research and general spending as well as unfavorable foreign
currency effects.
Sales in North America were
even with year-ago. Net selling prices increased 5 percent and
product mix improved 1 percent while volume declined approximately
6 percent, reflecting the planned exit of a private label contract
earlier in the year as well as retailer inventory changes. The
Thinx acquisition increased sales 1 point and changes in foreign
currency exchange rates decreased sales approximately 1
percent.
Sales in D&E markets decreased 6 percent. Changes in foreign
currency exchange rates decreased sales 8 percent. Net selling
prices increased sales 10 percent and product mix improved 3 points
while volumes declined 11 percent. Organic sales growth was
primarily driven by Latin America
and China, offset by declines in
Southeast Asia.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) decreased 4 percent. Changes in foreign
currency exchange rates reduced sales 14 percent. Net selling
prices increased sales 6 percent while volumes and product mix each
contributed 2 points of sales growth.
Consumer Tissue Segment
Fourth quarter sales of $1.6 billion
was even with year-ago with organic sales up 5 percent. Net selling
prices increased sales 11 percent while volumes declined 6 percent.
Changes in foreign currency exchange rates reduced sales
5 percent. Fourth quarter operating profit of $239 million increased 19 percent. Results
benefited from higher net selling prices and cost savings. The
comparison was impacted by input cost inflation, lower volumes and
the associated fixed cost under absorption, as well as unfavorable
foreign currency effects.
Sales in North America
increased 2 percent. Net selling prices rose 8 percent while
volumes declined 6 percent.
Sales in D&E markets decreased 1 percent. Changes in foreign
currency exchange rates decreased sales 6 percent. Net selling
prices rose 13 percent and product mix improved 1 point, while
volumes were down 9 percent.
Sales in developed markets outside North America decreased 3 percent. Changes in
foreign currency exchange rates decreased sales 14 percent. Net
selling prices rose approximately 16 percent, with strong pricing
gains across all markets, while volumes declined 5 points.
K-C Professional (KCP) Segment
Fourth quarter sales of $0.8 billion
increased 11 percent, including organic sales growth of 16 percent.
Net selling prices rose 20 percent, product mix improved sales 1
point while volumes declined 5 percent. Changes in foreign currency
exchange rates decreased sales 5 percent. Fourth quarter operating
profit of $163 million increased
126 percent. Results benefited from higher net selling prices,
favorable product mix and cost savings. The comparison was impacted
by input cost inflation, lower volumes as well as unfavorable
foreign currency effects.
Sales in North America
increased 17 percent. Net selling prices rose 19 percent, product
mix increased sales 1 point while volumes declined 2 percent.
Changes in foreign currency exchange rates decreased sales 1
percent. Washroom products and wipers sales were up
double-digits while the sale of safety products normalized
following elevated demand throughout 2021.
Sales in D&E markets increased 3 percent. Net selling prices
increased 11 percent and product mix increased sales 2 points
while volumes declined 3 percent. Changes in foreign currency
exchange rates decreased sales 7 percent.
Sales in developed markets outside North America increased 1 percent. Net selling
prices increased 30 percent and product mix improved sales 3 points
while volumes declined 17 percent, primarily driven by Western Europe. Changes in foreign currency
exchange rates reduced sales 15 percent.
Full Year 2022 Results
Sales of $20.2 billion increased 4 percent. Organic sales
increased 7 percent, as net selling prices rose 9 percent, product
mix increased sales 1 point and volumes declined 3 percent.
Changes in foreign currency exchange rates decreased sales by
approximately 4 percent.
Operating profit was $2,681
million in 2022 and $2,561
million in 2021. Results in 2022 include the net benefit of
the acquisition of a controlling interest of Thinx and 2021 results
include charges related to the 2018 Global Restructuring
Program.
Adjusted operating profit was $2,617
million in 2022 and $2,836
million in 2021. Results were impacted by $1.5 billion of higher input costs, higher
marketing, research and general spending and unfavorable foreign
currency effects. Results benefited from organic sales growth and
$290 million of FORCE savings.
Diluted net income per share was $5.72 in 2022 and $5.35 in 2021. Adjusted earnings per share of
$5.63 decreased 9 percent compared to
$6.18 in 2021.
2023 Outlook and Key Planning Assumptions
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. This outlook does not
reflect the impact of the sale of our Brazil tissue business which is pending
customary conditions and regulatory approval.
- Net sales increase 0 to 2 percent.
-
- Organic sales growth of 2 to 4 percent.
- Foreign currency exchange rates unfavorable approximately 2
percent.
- Operating profit up mid-to-high single digits versus adjusted
operating profit in 2022.
-
- Cost savings associated with FORCE program in-line with the
prior year.
- Input costs expected to increase $200 to $300
million.
- Foreign currency exchange rates expected to reduce operating
profit by low-double digits or approximately $300 to $400
million.
- Marketing, research and general spending expected to be up
year-on-year driven by continued investment in the business,
including higher advertising spending, as well as general
inflation.
- Nonoperating expense expected to increase approximately
$40 million versus adjusted
nonoperating expense in 2022, primarily related to interest rate
driven employee postretirement benefit expense.
- Net interest expense expected to increase high-single digits
year-over-year.
- Effective tax rate 23 to 25 percent.
- Net income from equity companies similar to prior year.
- Earnings per share increase 2 to 6 percent versus adjusted
earnings per share in 2022.
- Capital spending of $800 to
$900 million.
- The Board of Directors approved to increase the dividend by 1.7
percent to $1.18 per share, up from
$1.16 per share in 2022. The first
dividend will be payable on April 4,
2023 to stockholders of record on March 10, 2023.
- Share repurchases of $100 to
$150 million, subject to market
conditions.
Supplemental Materials and Live Webcast
At
approximately 7:00 a.m. (CST) on
January 25, 2023, the company will
post supplemental materials regarding its full-year 2022 results
and 2023 outlook at www.kimberly-clark.com.
At 9:00 a.m. (CST) on January 25, 2023, the company will host a live
conference call with investors and analysts. Stockholders and
others are invited to listen to the live broadcast or a playback,
which will be accessible on the company's website at
www.kimberly-clark.com.
About Kimberly-Clark
Kimberly-Clark (NYSE: KMB) and
its trusted brands are an indispensable part of life for people in
more than 175 countries. Fueled by ingenuity, creativity, and
an understanding of people's most essential needs, we're committed
to our purpose of Better Care for a Better World. Our portfolio of
brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle,
Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Neve,
Plenitud, Sweety, Softex, Viva and WypAll, holds No. 1 or No. 2
share positions in approximately 80 countries. We use sustainable
practices that support a healthy planet, build strong communities,
and ensure our business thrives for decades to come. To keep up
with the latest news and to learn more about the company's 150-year
history of innovation, visit www.kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its
proxy statements and other SEC filings, including Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K, are made available free of charge on the company's
website on the same day they are filed with the SEC. To view these
filings, visit the Investors section of the company's website.
Forward Looking Statements
Certain matters contained
in this news release concerning the outlook, anticipated financial
and operating results, raw material, energy and other input costs,
anticipated currency rates and exchange risks, including in
Argentina and Turkey, net income from equity companies,
sources and uses of cash, the effective tax rate, the anticipated
cost savings from the company's FORCE program, growth initiatives,
product innovations, contingencies and anticipated transactions of
the company constitute forward-looking statements and are based
upon management's expectations and beliefs concerning future events
impacting the company. In addition, many factors outside our
control, including the war in Ukraine (including the related responses of
consumers, customers and suppliers as well as sanctions issued by
the U.S., the European Union, Russia or other countries), pandemics
(including the ongoing COVID-19 outbreak and the related responses
of governments, consumers, customers, suppliers and employees),
epidemics, the prices and availability of our raw materials, supply
chain disruptions, failure to realize the expected benefits or
synergies from our acquisition and disposition activity (including
our pending agreement to sell our Neve tissue brand and associated
assets in Brazil), changes in
customer preferences, severe weather conditions, government trade
or similar regulatory actions, potential competitive pressures on
selling prices for our products, energy costs, fluctuations in
foreign currency exchange rates, our ability to maintain key
customer relationships, as well as general economic and political
conditions globally and in the markets in which we do business,
could affect the realization of these estimates.
There can be no assurance that these future events will occur as
anticipated or that the company's results will be as estimated.
Forward-looking statements speak only as of the date they were
made, and we undertake no obligation to publicly update them. For a
description of certain factors that could cause the company's
future results to differ from those expressed in any such
forward-looking statements, see Item 1A entitled "Risk Factors" in
the company's Annual Report on Form 10-K for the year ended
December 31, 2021.
Non-GAAP Financial Measures
This news release and the
accompanying tables include the following financial measures that
have not been calculated in accordance with accounting principles
generally accepted in the U.S., or GAAP, and are therefore referred
to as non-GAAP financial measures:
- Adjusted earnings and earnings per share
- Adjusted gross and operating profit
- Adjusted effective tax rate
These non-GAAP financial measures exclude the following items
for the relevant time periods as indicated in the accompanying
non-GAAP reconciliations to the comparable GAAP financial
measures:
- Pension settlements. In 2022, the company recognized pension
settlement charges related to lump-sum distributions from pension
plan assets exceeding the total of annual service and interest
costs resulting in a recognition of deferred actuarial losses.
- Acquisition of controlling interest in Thinx. In the first
quarter of 2022, the company completed the acquisition of a
majority and controlling share of Thinx. As a result of this
transaction, a net benefit was recognized primarily due to the
nonrecurring, non-cash gain recognized related to the remeasurement
of the carrying value of previously held equity investment to fair
value partially offset by transaction and integration costs.
- 2018 Global Restructuring Program. In 2018, the company
initiated a restructuring program to reduce our structural cost
base by streamlining and simplifying our manufacturing supply chain
and overhead organization. Restructuring charges were incurred in
2018 through 2021. The restructuring actions were completed by the
end of 2021.
The company provides these non-GAAP financial measures as
supplemental information to our GAAP financial measures. Management
and the company's Board of Directors use adjusted earnings,
adjusted earnings per share and adjusted gross and operating profit
to (a) evaluate the company's historical and prospective financial
performance and its performance relative to its competitors, (b)
allocate resources and (c) measure the operational performance of
the company's business units and their managers. Management also
believes that the use of an adjusted effective tax rate provides
improved insight into the tax effects of our ongoing business
operations.
Additionally, the Management Development and Compensation
Committee of the company's Board of Directors has used certain of
the non-GAAP financial measures when setting and assessing
achievement of incentive compensation goals. These goals are based,
in part, on the company's adjusted earnings per share and
improvement in the company's adjusted return on invested capital
determined by excluding certain of the adjustments that are used in
calculating these non-GAAP financial measures.
This news release includes information regarding organic sales
growth, which describes the impact of changes in volume, net
selling prices and product mix on net sales. Changes in foreign
currency exchange rates, acquisitions and exited businesses also
impact the year-over-year change in net sales.
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Three Months
Ended
December 31
|
|
|
|
2022
|
|
2021
|
|
Change
|
Net
Sales
|
$
4,964
|
|
$ 4,965
|
|
—
|
Cost of products
sold
|
3,337
|
|
3,529
|
|
-5 %
|
Gross
Profit
|
1,627
|
|
1,436
|
|
+13 %
|
Marketing, research
and general expenses
|
916
|
|
911
|
|
+1 %
|
Other (income) and
expense, net
|
(1)
|
|
4
|
|
N.M.
|
Operating
Profit
|
712
|
|
521
|
|
+37 %
|
Nonoperating
expense
|
(24)
|
|
(15)
|
|
+60 %
|
Interest
income
|
7
|
|
2
|
|
+250 %
|
Interest
expense
|
(76)
|
|
(64)
|
|
+19 %
|
Income Before Income
Taxes and Equity Interests
|
619
|
|
444
|
|
+39 %
|
Provision for income
taxes
|
(139)
|
|
(93)
|
|
+49 %
|
Income Before Equity
Interests
|
480
|
|
351
|
|
+37 %
|
Share of net income of
equity companies
|
35
|
|
10
|
|
+250 %
|
Net
Income
|
515
|
|
361
|
|
+43 %
|
Net income
attributable to noncontrolling interests
|
(8)
|
|
(4)
|
|
+100 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
507
|
|
$
357
|
|
+42 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
1.50
|
|
$
1.06
|
|
+42 %
|
Diluted
|
$
1.50
|
|
$
1.06
|
|
+42 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
1.16
|
|
$
1.14
|
|
+2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
December
31
|
|
|
|
2022
|
|
2021
|
|
|
Outstanding shares as
of
|
337.5
|
|
336.8
|
|
|
Average diluted shares
for three months ended
|
338.5
|
|
338.2
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Twelve Months
Ended
December 31
|
|
|
|
2022
|
|
2021
|
|
Change
|
Net
Sales
|
$
20,175
|
|
$
19,440
|
|
+4 %
|
Cost of products
sold
|
13,956
|
|
13,452
|
|
+4 %
|
Gross
Profit
|
6,219
|
|
5,988
|
|
+4 %
|
Marketing, research
and general expenses
|
3,581
|
|
3,399
|
|
+5 %
|
Other (income) and
expense, net
|
(43)
|
|
28
|
|
N.M.
|
Operating
Profit
|
2,681
|
|
2,561
|
|
+5 %
|
Nonoperating
expense
|
(73)
|
|
(86)
|
|
-15 %
|
Interest
income
|
14
|
|
6
|
|
+133 %
|
Interest
expense
|
(282)
|
|
(256)
|
|
+10 %
|
Income Before Income
Taxes and Equity Interests
|
2,340
|
|
2,225
|
|
+5 %
|
Provision for income
taxes
|
(495)
|
|
(479)
|
|
+3 %
|
Income Before Equity
Interests
|
1,845
|
|
1,746
|
|
+6 %
|
Share of net income of
equity companies
|
116
|
|
98
|
|
+18 %
|
Net
Income
|
1,961
|
|
1,844
|
|
+6 %
|
Net income
attributable to noncontrolling interests
|
(27)
|
|
(30)
|
|
-10 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
1,934
|
|
$ 1,814
|
|
+7 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
5.73
|
|
$
5.38
|
|
+7 %
|
Diluted
|
$
5.72
|
|
$
5.35
|
|
+7 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
4.64
|
|
$
4.56
|
|
+2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
December
31
|
|
|
|
2022
|
|
2021
|
|
|
Average diluted shares
for twelve months ended
|
338.3
|
|
338.8
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
2022 Data is
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
As
Reported
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Nonoperating
expense
|
|
$
(24)
|
|
$
(18)
|
|
$
(6)
|
Provision for income
taxes
|
|
(139)
|
|
5
|
|
(144)
|
Effective tax
rate
|
|
22.5 %
|
|
—
|
|
22.6 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
507
|
|
(13)
|
|
520
|
Diluted Earnings per
Share(a)
|
|
1.50
|
|
(0.04)
|
|
1.54
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2021
|
|
|
As
Reported
|
|
2018 Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
3,529
|
|
$
56
|
|
$
3,473
|
Gross profit
|
|
1,436
|
|
(56)
|
|
1,492
|
Marketing, research and
general expenses
|
|
911
|
|
33
|
|
878
|
Other (income) and
expense, net
|
|
4
|
|
1
|
|
3
|
Operating
profit
|
|
521
|
|
(90)
|
|
611
|
Nonoperating
expense
|
|
(15)
|
|
(14)
|
|
(1)
|
Provision for income
taxes
|
|
(93)
|
|
27
|
|
(120)
|
Effective tax
rate
|
|
20.9 %
|
|
—
|
|
21.9 %
|
Share of net income of
equity companies
|
|
10
|
|
(7)
|
|
17
|
Net income attributable
to noncontrolling interests
|
|
(4)
|
|
2
|
|
(6)
|
Net income attributable
to Kimberly-Clark Corporation
|
|
357
|
|
(82)
|
|
439
|
Diluted earnings per
share(a)
|
|
1.06
|
|
(0.24)
|
|
1.30
|
|
|
(a)
"As Adjusted Non-GAAP" may not equal "As
Reported" plus "Adjustments" as a result of rounding.
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
Twelve Months Ended December 31,
2022
|
|
|
As
Reported
|
|
Acquisition of
Controlling
Interest in Thinx
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Marketing, research and
general expenses
|
|
$
3,581
|
|
$
21
|
|
$
—
|
|
$
3,560
|
Other (income) and
expense, net
|
|
(43)
|
|
(85)
|
|
—
|
|
42
|
Operating
Profit
|
|
2,681
|
|
64
|
|
—
|
|
2,617
|
Nonoperating
expense
|
|
(73)
|
|
—
|
|
(52)
|
|
(21)
|
Provision for income
taxes
|
|
(495)
|
|
4
|
|
13
|
|
(512)
|
Effective tax
rate
|
|
21.2 %
|
|
—
|
|
—
|
|
22.0 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
1,934
|
|
68
|
|
(39)
|
|
1,905
|
Diluted Earnings per
Share(a)
|
|
5.72
|
|
0.20
|
|
(0.12)
|
|
5.63
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
2021
|
|
|
As
Reported
|
|
2018 Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
13,452
|
|
$
154
|
|
$ 13,298
|
Gross profit
|
|
5,988
|
|
(154)
|
|
6,142
|
Marketing, research and
general expenses
|
|
3,399
|
|
111
|
|
3,288
|
Other (income) and
expense, net
|
|
28
|
|
10
|
|
18
|
Operating
profit
|
|
2,561
|
|
(275)
|
|
2,836
|
Nonoperating
expense
|
|
(86)
|
|
(79)
|
|
(7)
|
Provision for income
taxes
|
|
(479)
|
|
75
|
|
(554)
|
Effective tax
rate
|
|
21.5 %
|
|
—
|
|
21.5 %
|
Share of net income of
equity companies
|
|
98
|
|
(7)
|
|
105
|
Net income attributable
to noncontrolling interests
|
|
(30)
|
|
5
|
|
(35)
|
Net income attributable
to Kimberly-Clark Corporation
|
|
1,814
|
|
(281)
|
|
2,095
|
Diluted earnings per
share(a)
|
|
5.35
|
|
(0.83)
|
|
6.18
|
|
|
(a)
"As Adjusted Non-GAAP" may not equal "As
Reported" plus "Adjustments" as a result of rounding.
|
|
Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for the comparable GAAP measures, and they should be
read only in conjunction with the company's consolidated financial
statements prepared in accordance with GAAP. There are
limitations to these non-GAAP financial measures because they are
not prepared in accordance with GAAP and may not be comparable to
similarly titled measures of other companies due to potential
differences in methods of calculation and items being
excluded. The company compensates for these limitations by
using these non-GAAP financial measures as a supplement to the GAAP
measures and by providing reconciliations of the non-GAAP and
comparable GAAP financial measures.
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED BALANCE
SHEETS
|
(Millions)
|
|
|
December
31
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
427
|
|
$
270
|
Accounts receivable,
net
|
2,280
|
|
2,207
|
Inventories
|
2,269
|
|
2,239
|
Other current
assets
|
753
|
|
849
|
Total Current
Assets
|
5,729
|
|
5,565
|
Property, Plant and
Equipment, Net
|
7,885
|
|
8,097
|
Investments in
Equity Companies
|
238
|
|
290
|
Goodwill
|
2,074
|
|
1,840
|
Other Intangible
Assets, Net
|
851
|
|
810
|
Other
Assets
|
1,193
|
|
1,235
|
TOTAL
ASSETS
|
$
17,970
|
|
$
17,837
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
844
|
|
$
433
|
Trade accounts
payable
|
3,813
|
|
3,840
|
Accrued expenses and
other current liabilities
|
2,289
|
|
2,096
|
Dividends
payable
|
388
|
|
380
|
Total Current
Liabilities
|
7,334
|
|
6,749
|
Long-Term
Debt
|
7,578
|
|
8,141
|
Noncurrent Employee
Benefits
|
654
|
|
809
|
Deferred Income
Taxes
|
647
|
|
694
|
Other
Liabilities
|
799
|
|
681
|
Redeemable Common
and Preferred Securities of Subsidiaries
|
258
|
|
26
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
547
|
|
514
|
Noncontrolling
Interests
|
153
|
|
223
|
Total Stockholders'
Equity
|
700
|
|
737
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
17,970
|
|
$
17,837
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH FLOW
STATEMENTS
|
(Millions)
|
|
|
|
Three Months
Ended
December 31
|
|
Twelve Months
Ended
December 31
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
515
|
|
$
361
|
|
$ 1,961
|
|
$ 1,844
|
Depreciation and
amortization
|
186
|
|
194
|
|
754
|
|
766
|
Asset
impairments
|
—
|
|
—
|
|
—
|
|
3
|
Gain on previously
held equity investment in Thinx
|
—
|
|
—
|
|
(85)
|
|
—
|
Stock-based
compensation
|
49
|
|
(4)
|
|
150
|
|
26
|
Deferred income
taxes
|
74
|
|
(28)
|
|
(57)
|
|
(70)
|
Net (gains) losses on
asset dispositions
|
1
|
|
5
|
|
15
|
|
39
|
Equity companies'
earnings (in excess of) less than dividends paid
|
27
|
|
50
|
|
6
|
|
25
|
Operating working
capital
|
149
|
|
478
|
|
(17)
|
|
46
|
Postretirement
benefits
|
(10)
|
|
8
|
|
(4)
|
|
47
|
Other
|
—
|
|
(2)
|
|
10
|
|
4
|
Cash Provided by
Operations
|
991
|
|
1,062
|
|
2,733
|
|
2,730
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(197)
|
|
(273)
|
|
(876)
|
|
(1,007)
|
Acquisition of
business, net of cash acquired
|
—
|
|
—
|
|
(46)
|
|
—
|
Proceeds from
dispositions of property
|
5
|
|
12
|
|
12
|
|
43
|
Investments in time
deposits
|
(247)
|
|
(286)
|
|
(658)
|
|
(918)
|
Maturities of time
deposits
|
165
|
|
238
|
|
797
|
|
836
|
Other
|
6
|
|
(11)
|
|
(14)
|
|
(10)
|
Cash Used for
Investing
|
(268)
|
|
(320)
|
|
(785)
|
|
(1,056)
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(391)
|
|
(383)
|
|
(1,558)
|
|
(1,516)
|
Change in short-term
debt
|
(226)
|
|
(951)
|
|
261
|
|
(97)
|
Debt
proceeds
|
—
|
|
600
|
|
—
|
|
605
|
Debt
repayments
|
—
|
|
—
|
|
(312)
|
|
(269)
|
Proceeds from exercise
of stock options
|
10
|
|
13
|
|
94
|
|
65
|
Acquisitions of common
stock for the treasury
|
(26)
|
|
(7)
|
|
(100)
|
|
(400)
|
Cash dividends paid to
noncontrolling interests
|
(16)
|
|
(19)
|
|
(98)
|
|
(36)
|
Other
|
(2)
|
|
(8)
|
|
(47)
|
|
(48)
|
Cash Used for
Financing
|
(651)
|
|
(755)
|
|
(1,760)
|
|
(1,696)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(7)
|
|
(3)
|
|
(31)
|
|
(11)
|
Change in Cash and
Cash Equivalents
|
65
|
|
(16)
|
|
157
|
|
(33)
|
Cash and Cash
Equivalents - Beginning of Period
|
362
|
|
286
|
|
270
|
|
303
|
Cash and Cash
Equivalents - End of Period
|
$
427
|
|
$
270
|
|
$
427
|
|
$
270
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
Three Months
Ended
December 31
|
|
|
|
Twelve Months
Ended
December 31
|
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$ 2,555
|
|
$ 2,632
|
|
-3 %
|
|
$
10,622
|
|
$
10,267
|
|
+3 %
|
Consumer
Tissue
|
|
1,560
|
|
1,559
|
|
—
|
|
6,243
|
|
6,034
|
|
+3 %
|
K-C
Professional
|
|
838
|
|
758
|
|
+11 %
|
|
3,256
|
|
3,072
|
|
+6 %
|
Corporate &
Other
|
|
11
|
|
16
|
|
N.M.
|
|
54
|
|
67
|
|
N.M.
|
TOTAL NET
SALES
|
|
$ 4,964
|
|
$ 4,965
|
|
—
|
|
$
20,175
|
|
$
19,440
|
|
+4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
423
|
|
$
425
|
|
—
|
|
$ 1,787
|
|
$ 1,856
|
|
-4 %
|
Consumer
Tissue
|
|
239
|
|
201
|
|
+19 %
|
|
806
|
|
888
|
|
-9 %
|
K-C
Professional
|
|
163
|
|
72
|
|
+126 %
|
|
457
|
|
404
|
|
+13 %
|
Corporate &
Other(a)
|
|
(114)
|
|
(173)
|
|
N.M.
|
|
(412)
|
|
(559)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
|
(1)
|
|
4
|
|
N.M.
|
|
(43)
|
|
28
|
|
N.M.
|
TOTAL OPERATING
PROFIT
|
|
$
712
|
|
$
521
|
|
+37 %
|
|
$ 2,681
|
|
$ 2,561
|
|
+5 %
|
|
|
(a)
|
Corporate & Other
and Other (income) and expense, net include income and expense not
associated with the business segments, including adjustments as
indicated in the Non-GAAP Reconciliations.
|
PERCENTAGE CHANGE IN
NET SALES VERSUS PRIOR YEAR
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Currency
|
|
|
Organic(b)
|
Personal
Care
|
|
(3)
|
|
(7)
|
|
7
|
|
2
|
|
(5)
|
|
|
2
|
Consumer
Tissue
|
|
—
|
|
(6)
|
|
11
|
|
—
|
|
(5)
|
|
|
5
|
K-C
Professional
|
|
11
|
|
(5)
|
|
20
|
|
1
|
|
(5)
|
|
|
16
|
TOTAL
CONSOLIDATED
|
|
—
|
|
(7)
|
|
10
|
|
1
|
|
(5)
|
|
|
5
|
|
|
|
|
|
Twelve Months Ended
December 31, 2022
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Currency
|
|
|
Organic(b)
|
Personal
Care
|
|
3
|
|
(3)
|
|
8
|
|
2
|
|
(3)
|
|
|
7
|
Consumer
Tissue
|
|
3
|
|
(1)
|
|
8
|
|
—
|
|
(4)
|
|
|
7
|
K-C
Professional
|
|
6
|
|
(4)
|
|
12
|
|
1
|
|
(4)
|
|
|
9
|
TOTAL
CONSOLIDATED
|
|
4
|
|
(3)
|
|
9
|
|
1
|
|
(4)
|
|
|
7
|
|
|
(a)
|
Total may not equal the
sum of volume, net price, mix/other and currency due to
rounding.
|
(b)
|
Combined impact of
changes in volume, net price and mix/other.
|
|
|
N.M. - Not
Meaningful
|
|
Unaudited
|
[KMB-F]
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SOURCE Kimberly-Clark Corporation