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Kleenex tissue maker Kimberly-Clark's quarterly sales jump on strong demand
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Kleenex tissue maker Kimberly-Clark's quarterly sales jump on strong demand
Aug 1, 2025 4:16 AM

(Reuters) -Kimberly-Clark on Friday posted a rise in second-quarter organic sales and beat profit estimates, 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.

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.

Shares of the company were up about 2% in premarket trading.

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 adjusted earnings of $1.92 per share. Analysts were expecting $1.67 per share, according to data compiled by LSEG.

In April, Kimberly-Clark 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 10%.

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 said.

(Reporting by Savyata Mishra and Neil J Kanatt in Bengaluru; Editing by Devika Syamnath)

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