Kimberly-Clark (KMB) Q4 2024 earnings summary

Executive summary

• Launched the multi-year Powering Care transformation strategy and reorganized into three segments, driving innovation, volume gains, and efficiencies for reinvestment and shareholder returns.

• Full-year 2024 results exceeded long-term growth targets, establishing a strong foundation for accelerated strategy and value creation in 2025.

• Focused on pioneering innovation, margin optimization, and organizational rewiring to drive value creation.

• Entering 2025 with high confidence in innovation-led growth and continued investment in product quality, brand support, and productivity initiatives.

Financial highlights

• FY24 organic sales grew 3.2% year-over-year; Q4 organic sales up 2.3% with 1.5% volume growth and 0.6% price increase.

• Adjusted operating profit grew 15.6% year-over-year on a constant-currency basis; Q4 adjusted operating profit was $684M, up 2.1%.

• Adjusted EPS increased 17.7% year-over-year on a constant-currency basis; FY adjusted EPS was $7.30, up 11.1%.

• Adjusted gross margin improved by 2 percentage points to 36.5% in FY24; Q4 adjusted gross margin was 35.4%, up 50 bps.

• Productivity savings reached a historical high of 5.9% in 2024, with a target of 5% for 2025.

Outlook and guidance

• 2025 organic sales growth expected to outpace category averages (~2%), led by volume and mix, with reported net sales facing a ~300 bps currency headwind and ~240 bps impact from divestitures and business exits.

• Adjusted operating profit and EPS projected to grow at high and mid-to-high single-digit rates, respectively, on a constant-currency basis, but with significant negative impacts from currency and divestitures.

• Revenue and profit expected to be evenly distributed between first and second half of 2025.

• Gross margin expansion to continue in 2025, but at a slower pace; operating margin expected to grow faster than gross margin due to SG&A savings.

• Adjusted free cash flow guidance of $2B+ for 2025, with $1.0–$1.2B in capital expenditures.