Description

Kimberly-Clark: 6% Productivity Gains May Not Be Enough For Back-Half Cost Pressure!

Kimberly-Clark’s first quarter performance reflects continued progress in its strategic transformation and demonstrates solid organic sales growth driven by innovation, particularly in its key focus areas of Baby Care, Women’s Health, and Active Aging. The company achieved a 3% increase in volume plus mix growth—marking a ninth or tenth consecutive quarter of positive growth—supported by differentiated, science-backed innovations and a disciplined promotional approach. Notably, promotion levels in North America remained below pre-COVID category levels, with promotional activities selectively used to drive trial for new products like the Snug & Dry diaper innovation. Despite a promotional industry environment, Kimberly-Clark managed to grow volume without heavy discounting. The company also reported progress in productivity, with a 6% gross productivity improvement in the quarter, consistent with the strong performance achieved over the past two years.