Jan 27 (Reuters) - Kimberly-Clark ( KMB ) exceeded

quarterly profit expectations on Tuesday, helped by cost

controls and steady demand for its products including Huggies

diapers and Kleenex tissues.

The Dallas-based company has cut jobs and sold low-margin

and non-essential businesses such ‌as its private-label diaper

and personal protective equipment segments in recent months.

That has shielded ​margins as Kimberly-Clark ( KMB ) expands its

affordable ranges and offers lower-priced ‍products that still

carry premium features to attract ⁠cost-conscious customers and

fight ⁠competition.

Prices declined 1.1% while organic sales rose 2.1% in the

fourth quarter, driven by ‌a 2.7% growth in overall ​volumes as

consumers stocked up on essential products such as surface

cleaning agents, disinfectants and paper napkins at

warehouse-style ⁠club stores that sell larger, ‍value ​packs.

The company, which had previously warned that steep U.S.

import duties, especially on Chinese goods, would hit

profitability, posted an adjusted ‍gross margin of 37%, in line

with the prior year.

Adjusted earnings per share of $1.86 were above analysts'

estimates of $1.81, according to data compiled by LSEG.

Net sales for the quarter ended December 30 totaled $4.08

billion, slightly shy of expectations of $4.09 billion.

Consumer goods ​bellwether ‍Procter & Gamble also

exceeded quarterly earnings expectations last week, despite

revenue slightly being short of expectations.

Kimberly-Clark ( KMB ) expects 2026 organic ​sales to be in line with

or ahead of the roughly 2% average growth seen across the

categories and markets it competes in.

It expects adjusted profit per share to grow at a

double-digit rate, with margins expanding as it improves

efficiencies.

The company has proposed buying Tylenol maker ​Kenvue

for more than $40 billion to create a global consumer

health company, with the deal expected to close by year-end.