Kimberly-Clark Boosts Sales and Inflation Forecast for 2022
2022.07.26 17:34
Kimberly-Clark Boosts Sales and Inflation Forecast for 2022
(Bloomberg) — Kimberly-Clark Corp (NYSE:KMB) raised its full-year revenue forecast while also lifting its outlook for costs in the latest sign of inflation’s staying power.
The Dallas-based company now expects organic sales to rise as much as 7%, compared with 6% at most previously, largely thanks to price increases. However, material costs should come in at $1.6 billion on the high end, a $300 million increase from the prior guidance.
Kimberly-Clark expects cost to remain elevated for most inputs, including pulp, as well as for distribution and energy, the company said in a statement Tuesday. That will contribute to a mid-single-digit percentage decline in adjusted operating profit for the year.
Second-quarter organic sales — which strip out some items — rose 9%, surpassing the 8.4% average of analysts surveyed by Bloomberg. Adjusted earnings per share came in at $1.34, beating the $1.30 estimate.
“Our growth strategy is working,” Kimberly-Clark Chief Executive Officer Mike Hsu said. “Our results also reflect ongoing market volatility and significant input-cost inflation.”
Sales were $5.1 billion, ahead the $4.9 billion estimate. But the company sold fewer units in its personal care and professional businesses than a year ago.
Shares slid 2.6% during Tuesday premarket trading in New York. The stock had fallen 6.7% this year through Monday’s close, compared with a 17% decline for the S&P 500 Index.
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