Kimberly-Clark, parent of Huggies and Kleenex, reported an uplift in organic sales last year, which management said was a result of the ongoing transformation strategy.
The company’s organic sales for the year ended December 31 rose 1.7 per cent, driven by a 2.5 percent increase in volume, partially offset by price investments.
Net sales for the year fell 2.1 per cent to $16.4 billion, primarily due to a 2.9 per cent negative impact from the PPE divestiture and the exit of the company’s private label diaper business in the US, as well as the impact from foreign currency translation.
By segment, North America sales slid 3 per cent on a reported basis and rose 0.8 per cent on an organic basis for the year, while international personal care sales were up 4.2 per cent on a reported basis and 4.5 per cent on an organic basis.
Gross margin was down from 37.4 per cent to 36.0 per cent, reflecting charges related to transformation initiatives and unfavorable pricing net of cost inflation.
Net income decreased from $216 million to $196 million, driven primarily by unfavorable currency impacts.
For the fourth quarter, net sales were down 0.6 per cent to $4.1 billion, while organic sales, which exclude divestitures, grew 2.1 per cent. Net income increased from $44 million to $59 million.
“We accelerated the largest transformation in Kimberly-Clark’s more than 150-year history, delivering results that underscore the strength of our business and serve as a springboard for enhanced growth and continued outperformance in 2026,” said chairman and CEO Mike Hsu.
The results come after Kimberly-Clark announced it would acquire Tylenol maker Kenvue Inc in a deal valued at $48.7 billion. The transaction remains subject to shareholder and regulatory approvals and is expected to close in this year’s second half.
Hsu said the acquisition marks a “powerful next step” in Kimberly-Clark’s transformation.
“We are making strong progress on our integration planning efforts and look forward to delivering on this unique opportunity to create generational value for Kimberly-Clark shareholders,” he added.
