Aug 1 (Reuters) - Kimberly-Clark ( KMB ) on Friday
posted a rise in second-quarter organic sales, led by steady
demand for products such as Huggies diapers and Kleenex tissues
in domestic and international markets.
The Dallas-based firm has broadened its portfolio to offer
products from budget to premium price tiers, in an effort to
capture demand across income levels and combat competition from
rivals such as Procter & Gamble ( PG ).
The company has also been streamlining its business to
control costs and drive growth in more profitable brands. In
June, it struck a $3.4 billion deal to sell a majority stake in
its international tissue business to Brazilian pulp maker Suzano
.
Organic sales for the quarter ended June 30 was up 3.9%,
driven by a 5% growth in overall volumes offsetting a 1.2%
decline in prices from last year.
Net sales from continuing operations, which exclude the
divested unit, came in at $4.16 billion, down 1.6% from last
year.
It also posted earnings of $1.92 per share. Analysts
were expecting $1.67 per share, according to data compiled by
LSEG.
In April, Kimberly-Clark ( KMB ) warned of $300 million in
additional costs this year, primarily due to U.S. President
Donald Trump's levies on China that have since come down to a
10% level.
It now expects adjusted earnings per share attributable for
2025 to grow at a low- to mid-single-digit rate, compared with
an earlier forecast for flat-to-positive growth on a
constant-currency basis.
The profit forecast continues to include the International
Family Care and Professional business until the close of the
joint venture deal with Suzano in mid-year 2026, Kimberly-Clark ( KMB )
said.